Question 1

The first major federal legislation passed to forbid contracts,combinations,or conspiracies in restraint of trade in the United States was the

Accepted Answer

The Sherman Antitrust Act was passed in 1890 and was the first major federal legislation to address antitrust issues in the United States. Its purpose was to prevent trusts and monopolies from restraining trade and it has been used as the principal tool to enforce competition laws in the US.

Question 2

Only two companies,Intel and AMD,design the computer processors for nearly every laptop and desktop sold in the U.S.today.Intel and AMD operate in which type of competitive environment?

Accepted Answer

An oligopoly is a market structure characterized by a few large firms dominating the market. In this case, Intel and AMD are the dominant firms in the computer processor market, creating an oligopoly.

Question 3

The purpose of the Clayton Act is to

Accepted Answer

The Clayton Act aims to prevent anti-competitive practices that have the potential to reduce competition, even if there is no actual harm yet. It seeks to promote fair competition in the marketplace and protect consumers by prohibiting any actions that may lead to monopolies or restrain trade.

Question 4

Which of the following laws has the purpose of protecting competition?

Accepted Answer

The Sherman Antitrust Act has the purpose of protecting competition by prohibiting agreements or practices that restrain trade or monopolize markets. It is the oldest and most important antitrust law in the United States.

Question 5

The Federal Trade Commission investigated Google as potentially being ________,but found that despite its very large market share,it had not harmed competition.

Accepted Answer

The best choice is D, as the FTC investigated Google as a potential monopoly, but ultimately concluded that it had not caused harm to competition despite its large market share. A pure competitor (A) is not a formal economic term, while an oligopoly (B) and monopolistic competitor (C) both suggest competition within a market. E is not a recognized term in economics.

Question 6

The U.S.Securities and Exchange Commission has designated just nine credit-rating agencies as nationally recognized statistical rating organizations,which include Moody's,Standard & Poor's,and Fitch Ratings.These agencies provide opinions on the creditworthiness of other entities and the financial obligations issued by them.Because so few companies can compete in it,the credit-rating industry would be considered

Accepted Answer

The fact that there are only nine designated credit-rating agencies indicates that the industry is dominated by a small number of firms, making it an oligopoly.

Question 7

The first major federal legislation passed to forbid actual monopolies or attempts to monopolize any part of trade or commerce in the United States was the

Accepted Answer

The Sherman Antitrust Act, passed in 1890, was the first major federal legislation to forbid the actual monopolies or attempts to monopolize any part of trade or commerce in the United States. It remains one of the main pillars of antitrust law today.

Question 8

Visa and MasterCard have recently been accused of violating antitrust laws by improperly fixing credit and debit card fees (known as swipe fees)paid by retailers to use their services,creating an anti-competitive environment.Legislation that prohibits price-fixing is an example of __________ forces that affect the marketing environment.

Accepted Answer

The legislation that prohibits price-fixing is an example of regulatory forces that affect the marketing environment.

Question 9

Small businesses employ about __________ of all private-sector employees.

Accepted Answer

The answer of Small businesses employ about __________ of all...

Question 10

Boeing,Northrup Grumman,and Lockheed Martin control the vast majority of the U.S.defense contractor industry.In terms of the form of competition,this industry is an example of

Accepted Answer

An oligopoly is a market structure where a small number of large firms dominate the industry, often leading to limited competition. The fact that three companies control the vast majority of the U.S. defense contractor industry indicates that it is an oligopoly.

Question 11

In marketing,the form of competition that occurs when only one firm sells the product is referred to as

Accepted Answer

Pure monopoly occurs when only one firm sells the product, with no close substitutes available. This gives the firm complete control over the price and supply of the product.

Question 12

In many geographic areas,there is only a single provider for gas and electric service for businesses and consumers.However,the government regulates that firm to ensure price protection for the buyer.This is an example of

Accepted Answer

A pure monopoly exists when there is only one supplier for a particular product or service, in this case gas and electric service. The government regulates this supplier to ensure price protection for buyers, making it a regulated monopoly. The other options do not accurately describe the situation since there is only one provider and it is regulated by the government.

Question 13

Small businesses account for __________ of the gross domestic product (GDP).

Accepted Answer

The answer of Small businesses account for __________ of the...

Question 14

The restrictions that state and federal laws place on business with regard to the conduct of its activities are referred to as

Accepted Answer

The answer of The restrictions that state and federal laws...

Question 15

Small businesses make up a large portion of the competitive landscape for most businesses.There are approximately __________ small businesses in the United States.

Accepted Answer

According to the Small Business Administration, there are approximately 28 million small businesses in the United States.

Question 16

An Arizona cardiac surgery practice agreed to pay the U.S.Department of Health and Human Services a $100,000 settlement following an investigation of potential violations of the Health Insurance Portability and Accountability Act (HIPAA)Privacy and Security Rules.The practice posted clinical and surgical appointments for its patients on an Internet-based calendar that was publicly accessible,which drew complaints for failing to protect health information of consumers.HIPAA rules are an example of __________ forces in the marketing environment.

Accepted Answer

The HIPAA Privacy and Security Rules are created and enforced by the U.S. Department of Health and Human Services and are a form of regulatory force in the marketing environment. Companies that handle protected health information must comply with these rules in order to protect the privacy and security of consumers' health information. The $100,000 settlement that the Arizona cardiac surgery practice had to pay as a result of the investigation demonstrates the serious consequences of not complying with HIPAA regulations.

Question 17

The purpose of the __________ is to forbid certain actions that are likely to lessen competition,although no actual harm has yet occurred.

Accepted Answer

The Clayton Act prohibits certain actions that are likely to lessen competition even if no actual harm has yet occurred. The act also prohibits mergers and acquisitions that may substantially lessen competition. The other acts listed focus on specific areas of competition law but do not have the same broad reach as the Clayton Act.

Question 18

The entertainment industry in the United States is dominated by Viacom,Disney,and Time Warner.In terms of the form of competition,this industry is an example of

Accepted Answer

The fact that there are a small number of dominant players in the industry (Viacom, Disney, and Time Warner) suggests that this industry is an example of an oligopoly. In an oligopoly, a few large firms dominate the market and compete against each other. This can lead to some collusion or cooperation between firms, as they seek to maintain their market power and avoid destructive price wars.

Question 19

Regulation refers to

Accepted Answer

Regulation typically refers to rules and restrictions that are imposed by the government through state and federal laws. These regulations are designed to ensure that businesses behave in a manner that is safe, fair, and ethical. They may cover a wide range of areas, including product safety, employment practices, environmental impact, and more. Violating these regulations can result in legal penalties for businesses, such as fines or even criminal charges.

Question 20

Since __________ is typically regulated by the state or federal government,marketing plays a relatively small role in this setting.

Accepted Answer

A pure monopoly is typically regulated by the state or federal government, and marketing plays a relatively small role in this setting because there is no competition to attract customers.

Quiz 3: Understanding the Marketing Environment,ethical Behavior,and Social Responsibility