A conspiracy among firms to fix prices was outlawed by the Sherman Antitrust Act.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2The tendency of bankers to take unwarranted risks in making loans because deposits were insured is an example of _____.
a. anchoring bias
b. self-serving bias
c. moral hazard
d. hazard pay
e. banker's lobbying
QUESTION 3Critics argue that U.S. industrial policy:
a. currently focuses only on developing the airlines industry.
b. discourages spending on basic research in universities.
c. should shift from a military to a civilian focus.
d. gives foreign industries an advantage over domestic producers.
e. provides too much protection to domestic industries.
QUESTION 4The Sherman Antitrust Act was an amendment to the Clayton Act.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5While deposit insurance was designed to make the banking industry more stable, it contributed to the banking crisis of the 1980s because:
a. the FDIC only insured commercial banks.
b. the ceiling on insured deposits was too low.
c. too many banks were insufficiently insured.
d. depositors became too complacent about the risks that the banks were taking.
e. unsafe banks were kicked out of the deposit insurance system.
QUESTION 6Which of the following is the prime objective of an industrial policy for any country?
a. To secure a leading global role for selected domestic industries
b. To promote and encourage the import of goods and services
c. To secure the interests of migrant workers
d. To encourage specialization of labor
e. To ensure a high level of competition for domestic firms
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