#1
Which company is famously associated with the term 'trust' in the context of monopolies?
Standard Oil Company
ExplanationStandard Oil Company is famously associated with the term 'trust' due to its monopoly and antitrust legal battles.
#2
What was the primary aim of the Sherman Antitrust Act of 1890?
To combat monopolistic business practices
ExplanationThe Sherman Antitrust Act aimed to combat monopolistic business practices and promote fair competition in the market.
#3
Who wrote the seminal work 'The Wealth of Nations,' which discusses the role of competition in markets?
Adam Smith
ExplanationAdam Smith wrote 'The Wealth of Nations,' discussing the role of competition in markets.
#4
What term describes a market structure in which a few large firms dominate the industry?
Oligopoly
ExplanationOligopoly describes a market structure in which a few large firms dominate the industry.
#5
Which government agency in the United States is responsible for enforcing antitrust laws and promoting competition?
Federal Trade Commission (FTC)
ExplanationThe Federal Trade Commission (FTC) in the United States is responsible for enforcing antitrust laws and promoting competition.
#6
What is a common argument in favor of allowing monopolies to exist in certain industries?
Monopolies encourage innovation and technological advancement
ExplanationA common argument in favor of allowing monopolies is that they encourage innovation and technological advancement.
#7
Which U.S. president is known for initiating a series of trust-busting lawsuits against large corporations?
Theodore Roosevelt
ExplanationTheodore Roosevelt is known for initiating a series of trust-busting lawsuits against large corporations.
#8
Who is often regarded as one of the pioneers of modern antitrust regulation in the United States?
Theodore Roosevelt
ExplanationTheodore Roosevelt is often regarded as one of the pioneers of modern antitrust regulation in the United States.
#9
Which landmark case in 1911 resulted in the breakup of the Standard Oil Company?
United States v. Standard Oil Co.
ExplanationThe landmark case in 1911 that resulted in the breakup of the Standard Oil Company was United States v. Standard Oil Co.
#10
Which famous economist is known for his work on monopolies and oligopolies, particularly the concept of 'contestable markets'?
William Baumol
ExplanationWilliam Baumol is known for his work on monopolies and oligopolies, particularly the concept of 'contestable markets.'
#11
What term refers to a monopoly that exists because of government regulation, rather than natural market forces?
State monopoly
ExplanationA State monopoly refers to a monopoly that exists because of government regulation, rather than natural market forces.
#12
Which piece of legislation, passed in 1914, established the Federal Trade Commission (FTC) to enforce antitrust laws and protect consumers?
Federal Trade Commission Act
ExplanationThe Federal Trade Commission Act, passed in 1914, established the FTC to enforce antitrust laws and protect consumers.
#13
Which U.S. president signed the Clayton Antitrust Act into law?
Woodrow Wilson
ExplanationWoodrow Wilson signed the Clayton Antitrust Act into law.
#14
Which of the following is NOT a potential consequence of monopolistic behavior?
Increased market efficiency
ExplanationIncreased market efficiency is NOT a potential consequence of monopolistic behavior.
#15
What economic concept describes a market situation where there is only one seller of a particular product?
Monopoly
ExplanationMonopoly is the economic concept that describes a market situation where there is only one seller of a particular product.
#16
In the context of antitrust regulation, what does 'predatory pricing' refer to?
Setting prices below cost to drive competitors out of the market
Explanation'Predatory pricing' in antitrust regulation refers to setting prices below cost to drive competitors out of the market.
#17
What economic term describes a situation where a single buyer has substantial control over a market?
Monopsony
ExplanationMonopsony is the economic term that describes a situation where a single buyer has substantial control over a market.
#18
Which landmark U.S. Supreme Court case, decided in 1911, led to the dissolution of the American Tobacco Company?
United States v. American Tobacco Co.
ExplanationUnited States v. American Tobacco Co., decided in 1911, led to the dissolution of the American Tobacco Company.
#19
Who is credited with coining the term 'monopoly' in economics?
John Stuart Mill
ExplanationJohn Stuart Mill is credited with coining the term 'monopoly' in economics.
#20
Which famous case in 1956 challenged the legality of Alcoa's monopoly in the aluminum industry?
United States v. Alcoa
ExplanationThe famous case in 1956 that challenged the legality of Alcoa's monopoly in the aluminum industry was United States v. Alcoa.