A merger of firms that compete in the same market is classified as a conglomerate merger.
a. True
b. False
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QUESTION 2Basic research has less immediate payoff to society.
a. True
b. False
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QUESTION 3Interest rate ceilings resulted in great profitability for banks in the 1970s.
a. True
b. False
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QUESTION 4The purchase of Michelin Tire Company by General Motors is an example of a vertical merger.
a. True
b. False
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QUESTION 5In the long run, the economy needs applied research geared toward specific products more than it needs basic research, which is not motivated by or directed toward manufacturing.
a. True
b. False
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QUESTION 6Thousands of U.S. banks failed in the 1930s because the Fed loaned too many reserves to member banks.
a. True
b. False
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QUESTION 7The per se rule would have not found a well-behaved, but gigantic, firm to be in violation of the antitrust laws.
a. True
b. False
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QUESTION 8Workers displaced due to technological change usually find it difficult to get new jobs.
a. True
b. False
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QUESTION 9Many banks in the U.S. failed in the 1930s, not because they were poorly managed, but because they could not survive the panicky withdrawal of funds by their depositors.
a. True
b. False
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