Antitrust Policy and Regulation

Description: This quiz assesses your knowledge of Antitrust Policy and Regulation. It covers topics such as the Sherman Act, the Clayton Act, and the Federal Trade Commission.
Number of Questions: 15
Created by:
Tags: antitrust sherman act clayton act federal trade commission
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Which of the following is not a goal of antitrust policy?

  1. Promoting competition

  2. Protecting consumers

  3. Encouraging innovation

  4. Maximizing profits


Correct Option: D
Explanation:

Antitrust policy aims to promote competition, protect consumers, and encourage innovation. Maximizing profits is not a goal of antitrust policy.

The Sherman Act was enacted in which year?

  1. 1890

  2. 1914

  3. 1936

  4. 1976


Correct Option: A
Explanation:

The Sherman Act was enacted in 1890.

Which section of the Sherman Act prohibits monopolization?

  1. Section 1

  2. Section 2

  3. Section 3

  4. Section 4


Correct Option: B
Explanation:

Section 2 of the Sherman Act prohibits monopolization.

Which section of the Sherman Act prohibits cartels?

  1. Section 1

  2. Section 2

  3. Section 3

  4. Section 4


Correct Option: A
Explanation:

Section 1 of the Sherman Act prohibits cartels.

The Clayton Act was enacted in which year?

  1. 1890

  2. 1914

  3. 1936

  4. 1976


Correct Option: B
Explanation:

The Clayton Act was enacted in 1914.

Which section of the Clayton Act prohibits price discrimination?

  1. Section 1

  2. Section 2

  3. Section 3

  4. Section 4


Correct Option: B
Explanation:

Section 2 of the Clayton Act prohibits price discrimination.

Which section of the Clayton Act prohibits tying arrangements?

  1. Section 1

  2. Section 2

  3. Section 3

  4. Section 4


Correct Option: C
Explanation:

Section 3 of the Clayton Act prohibits tying arrangements.

Which section of the Clayton Act prohibits exclusive dealing arrangements?

  1. Section 1

  2. Section 2

  3. Section 3

  4. Section 4


Correct Option: C
Explanation:

Section 3 of the Clayton Act prohibits exclusive dealing arrangements.

The Federal Trade Commission was created in which year?

  1. 1890

  2. 1914

  3. 1936

  4. 1976


Correct Option: B
Explanation:

The Federal Trade Commission was created in 1914.

What is the primary responsibility of the Federal Trade Commission?

  1. Enforcing antitrust laws

  2. Promoting consumer protection

  3. Regulating trade practices

  4. All of the above


Correct Option: D
Explanation:

The Federal Trade Commission is responsible for enforcing antitrust laws, promoting consumer protection, and regulating trade practices.

Which of the following is not a type of antitrust case?

  1. Horizontal merger

  2. Vertical merger

  3. Conglomerate merger

  4. Oligopoly


Correct Option: D
Explanation:

Oligopoly is not a type of antitrust case. It is a market structure in which a few large firms control a majority of the market share.

What is the Herfindahl-Hirschman Index (HHI)?

  1. A measure of market concentration

  2. A measure of market power

  3. A measure of market efficiency

  4. A measure of market size


Correct Option: A
Explanation:

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration. It is calculated by summing the squares of the market shares of all firms in a market.

What is the purpose of the Clayton Act's Section 7?

  1. To prevent horizontal mergers that may substantially lessen competition

  2. To prevent vertical mergers that may substantially lessen competition

  3. To prevent conglomerate mergers that may substantially lessen competition

  4. To prevent all mergers that may substantially lessen competition


Correct Option: A
Explanation:

The purpose of the Clayton Act's Section 7 is to prevent horizontal mergers that may substantially lessen competition.

What is the purpose of the Sherman Act's Section 2?

  1. To prohibit monopolization

  2. To prohibit cartels

  3. To prohibit price discrimination

  4. To prohibit tying arrangements


Correct Option: A
Explanation:

The purpose of the Sherman Act's Section 2 is to prohibit monopolization.

What is the purpose of the Clayton Act's Section 3?

  1. To prohibit exclusive dealing arrangements

  2. To prohibit tying arrangements

  3. To prohibit price discrimination

  4. To prohibit all of the above


Correct Option: D
Explanation:

The purpose of the Clayton Act's Section 3 is to prohibit exclusive dealing arrangements, tying arrangements, and price discrimination.

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