Antitrust policy is used to describe government policies and programs that are designed to:

Antitrust policy is used to describe government policies and programs that are designed to:
 a. promote the creation of trusts, or combinations of independent firms.
  b. control the growth of monopoly and enhance competition.
  c. deal with the threat of competitive practices to public interests.
  d. create an environment in which the government will distrust firms.
  e. create an environment in which firms will distrust the government.

QUESTION 2

A sharp increase in gasoline prices will cause the supply curve for trucking services to shift to the right.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

Which of the following is true of Antitrust policy?
 a. Antitrust policy prohibits agreements that allow free trade.
  b. Antitrust policy restricts abusive behavior by a firm dominating a market.
  c. Antitrust policy allows anti-competitive practices.
  d. Antitrust policy restricts subsidies in goods and services.
  e. Antitrust policy creates trade barriers like tariffs and quota.

QUESTION 4

Assume that the supply curve for tomatoes is upward sloping. If the price per pound increases from 0.99 to 1.89, a greater quantity of tomatoes will be supplied to the market.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

A possible solution to the network externality problem is the government limiting the size of networks.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

According to the law of supply, if the price of calculators decrease, the supply of calculators will decrease, everything else held constant.
 a. True
  b. False
  Indicate whether the statement is true or false