The major focus of the Clayton Act is to prevent the development of monopolies.
Answer the following statement true (T) or false (F)
True
The principal aim of the Clayton Act is to prevent the development of monopolies by prohibiting price discrimination, exclusive dealing agreements, certain types of mergers, and interlocking boards of directors among competing firms.
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The Law of Diminishing Marginal Returns states that:
A) successive increases in inputs eventually lead to less additional output. B) successive increases in product prices lead to a fall in revenue. C) the demand for a good decreases as the price of the good increases. D) the net benefits of a perfectly competitive firm decrease as more firms enter the market.
The foreign holdings of U.S. dollars
a. are hard to explain since the dollar is not legal tender outside the United States. b. have decreased substantially during the last decade. c. indicate that foreigners have confidence in the monetary policy and economy of the United States. d. are largely held in countries with a lengthy historical record of monetary and price stability.
Which of the following increases the supply of corn?
a. Farmers that grow soybeans can also grow corn, and the price of soybeans drops by 75 percent. b. Congress and the President eliminate subsidies formerly paid to corn farmers. c. The farm worker's union successfully negotiates a pay increase for corn harvest workers. d. The Surgeon General announces that eating corn bread contributes to baldness in men.
A consequence of hyperinflation is that people
A) increase the quantity of money demanded. B) receive higher real wage hikes, which increases their purchasing power for goods and services. C) who make fixed-payment loans to others receive higher payments as inflation increases. D) spend time trying to keep their money holdings near zero. E) want to lend funds because interest rates are so high.