Price discrimination that substantially lessens competition is prohibited by the Clayton Act.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2The purpose of deregulating banks during the 1980s was to:
a. eliminate the risk that banks incurred.
b. allow banks to compete with other financial institutions.
c. allow U.S. banks to compete with foreign banks.
d. help consumers earn more interest.
e. decrease the cost of banking regulation.
QUESTION 3Which of the following is an example of industrial policy?
a. Government imposing a high rate of taxes on the profits of large corporate houses
b. Government spending more on the construction of roads and bridges than on education
c. Government imposing a high rate of taxes on the import of goods and services
d. Government charging lower rate of taxes on the import of goods and services
e. Government selling imported cash crops at a subsidized rate
QUESTION 4Imperfect knowledge about a product can cause:
a. excessive resources devoted to producing a product.
b. consumers paying too high a price for a product.
c. overconsumption of a product.
d. all of the above answers are true.
e. none of the above answers a.-c. are true.
QUESTION 5The deregulation of U.S. banking in the 1980s led to:
a. increased profits at all banks.
b. no change in banks' conduct.
c. more bank failures than in the 1930s.
d. the insolvency and collapse of many banks as they began to hold riskier assets.
e. the end of FDIC insurance for banks that held risky assets.
QUESTION 6The term industrial policy refers to:
a. the policy that industries develop to promote growth.
b. the industrial policy related to marketing strategies.
c. the illegal activity that firms sometimes engage in to reduce competition.
d. the government policy that aims at enhancing the competitiveness of domestic firms.
e. the government policy that primarily aims at protecting domestic jobs.
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