Question 1

In the U.S.Steel case,the Supreme Court

Accepted Answer

The Supreme Court applied the "rule of reason" in the U.S. Steel case, determining that size alone did not constitute a violation of the Sherman Antitrust Act unless there was an unreasonable restraint of trade.

Question 2

Which statement is true?

Accepted Answer

All of the statements are true.

Question 3

Which of the following pharmaceutical companies have settled allegations of illegally marketing pharmaceutical drugs?

Accepted Answer

All of these companies have settled investigations of illegal marketing.

Question 4

Each of the following has tended to foster competition except

Accepted Answer

The declining number of corporate takeovers and mergers may indicate less competition rather than foster it, as it means less consolidation and fewer market players. The other three options typically increase competition by introducing new players or opening up markets.

Question 5

The first antitrust act passed was the _____ Antitrust Act.

Accepted Answer

The first antitrust act passed was the Sherman Antitrust Act in 1890.

Question 6

Statement I.In 1997 the European Commission indirectly blocked a merger between Boeing and McDonnell Douglas by threatening to impose fines when doing business in Europe.
Statement II.Some companies,such as Barnes & Noble,have backed out of proposed acquisitions to avoid antitrust legal battles.

Accepted Answer

Both statements are true. In 1997, the European Commission indeed played a significant role in the Boeing and McDonnell Douglas merger by threatening fines, showcasing the global reach of antitrust enforcement. Similarly, companies like Barnes & Noble have historically backed out of acquisitions to avoid the complexities and costs associated with antitrust litigation, demonstrating the impact of antitrust considerations on corporate decisions.

Question 7

Which statement is true?

Accepted Answer

Throughout U.S. history, the federal government has intervened in the economy to varying degrees, such as with the establishment of a national bank in 1791, the implementation of tariffs and trade policies, and the creation of the Federal Reserve System in 1913. The level of intervention has fluctuated over time, but there has never been a period of zero government involvement in the economy.

Question 8

The Justice Department brought suit against Microsoft contending ___________.

Accepted Answer

The Justice Department brought suit against Microsoft contending that the company forced PC makers to take Internet Explorer as a condition of licensing Windows. This was a violation of antitrust laws.

Question 9

____________ the airlines,trucking,and long-distance phone calling has led to lower prices for consumers.

Accepted Answer

Deregulation of these industries eliminated government restrictions on pricing and competition, leading to increased competition and lower prices for consumers.

Question 10

The deregulation of a few major industries began in the

Accepted Answer

The deregulation of major industries such as transportation (airlines, trucking, and rail) began in the late 1970s under the Carter administration. This was followed by further deregulation in telecommunications and financial institutions in the 1980s under the Reagan administration. Therefore, late 1970s is the best choice.

Question 11

The effects of deregulation on the economy under the Carter and Reagan administrations have been beneficial in all of the following industries except

Accepted Answer

The deregulation of the banking industry, particularly during the Reagan administration, led to a series of savings and loan crises in the 1980s. This resulted in significant financial instability and cost taxpayers an estimated $124 billion, demonstrating that the effects of deregulation were not beneficial in the banking sector.

Question 12

General Electric

Accepted Answer

General Electric is one of the world's largest and most diversified industrial conglomerates, with businesses spanning aviation, power, renewable energy, healthcare, and finance. It is known for its history of successful mergers and acquisitions, including horizontal mergers that have helped it to become the present king of conglomerates. It has not gone bankrupt, lost a major antitrust suit, or been built solely through horizontal mergers.

Question 13

Statement I.The distinction between American and foreign companies is becoming blurred.
Statement II.Monopoly and antitrust enforcement will become even more important in the 21st century than it was in the 20th century.

Accepted Answer

The answer of Statement I.The distinction between American and foreign...

Question 14

Statement I.One of the jobs of the Federal Trade Commission is to prevent false and deceptive advertising.
Statement II.The Federal Trade Commission prevented the mergers of Rite Aid with Revco and Staples with Office Depot.

Accepted Answer

Statement I is true, according to the Federal Trade Commission Act, the FTC is responsible for preventing unfair methods of competition and practices that are deceptive or violate antitrust laws. False and deceptive advertising falls under this responsibility. Statement II is also true, the FTC blocked the proposed mergers of Rite Aid with Revco in 1997 and Staples with Office Depot in 2016, citing antitrust concerns.

Question 15

The Standard Oil trust

Accepted Answer

The Standard Oil Trust was deemed to have behaved "badly" by the Supreme Court, leading to its breakup in 1911 due to violations of antitrust laws, specifically the Sherman Antitrust Act.

Question 16

Which of the following were descendants of the Standard Oil Trust?

Accepted Answer

All of the choices were descendants of the Standard Oil Trust. The Standard Oil Trust was broken up into 34 distinct companies, which went on to become some of the biggest names in the oil industry. Exxon, Mobil, Marathon Oil, and Chevron are all direct descendants of the Standard Oil Trust.

Question 17

John D.Rockefeller was the leader of the _____ trust.

Accepted Answer

John D. Rockefeller was the leader of the oil trust known as Standard Oil, which dominated the oil industry in the late 19th and early 20th century.

Question 18

Until the passage of the Airline Deregulation Act of 1978,the Civil Aeronautics Board controlled all of the following except

Accepted Answer

The Civil Aeronautics Board controlled fares, assigned routes, and had the power to approve or deny entry into the industry. However, it did not have control over profits.

Question 19

Which of the following statements is false?

Accepted Answer

The rule of reason actually originated in the Standard Oil case of 1911, not the ALCOA case of 1945.

Question 20

When separate firms engaged in various stages of a production process are united under one ownership,the resulting combination is known as

Accepted Answer

When separate firms engaged in various stages of a production process are united under one ownership, the resulting combination is known as a vertical merger. A horizontal merger involves the consolidation of firms that operate in the same industry and at the same stage of production. A conglomerate merger involves the combination of firms in different industries. A trust is a legal arrangement in which a single company controls a group of other companies or assets.

Quiz 25: Corporate Mergers and Antitrust

In the U.S.Steel case,the Supreme Court

Which statement is true?

Which of the following pharmaceutical companies have settled allegations of illegally marketing pharmaceutical drugs?

Each of the following has tended to foster competition except

The first antitrust act passed was the _____ Antitrust Act.

Statement I.In 1997 the European Commission indirectly blocked a merger between Boeing and McDonnell Douglas by threatening to impose fines when doing business in Europe. Statement II.Some companies,such as Barnes & Noble,have backed out of proposed acquisitions to avoid antitrust legal battles.

Which statement is true?

The Justice Department brought suit against Microsoft contending ___________.

____________ the airlines,trucking,and long-distance phone calling has led to lower prices for consumers.

The deregulation of a few major industries began in the

The effects of deregulation on the economy under the Carter and Reagan administrations have been beneficial in all of the following industries except

General Electric

Statement I.The distinction between American and foreign companies is becoming blurred. Statement II.Monopoly and antitrust enforcement will become even more important in the 21st century than it was in the 20th century.

Statement I.One of the jobs of the Federal Trade Commission is to prevent false and deceptive advertising. Statement II.The Federal Trade Commission prevented the mergers of Rite Aid with Revco and Staples with Office Depot.

The Standard Oil trust

Which of the following were descendants of the Standard Oil Trust?

John D.Rockefeller was the leader of the _____ trust.

Until the passage of the Airline Deregulation Act of 1978,the Civil Aeronautics Board controlled all of the following except

Which of the following statements is false?

When separate firms engaged in various stages of a production process are united under one ownership,the resulting combination is known as