Explain the difference between the per se and "rule of reason" standards of the antitrust laws
Antitrust laws treat agreements that could lessen competition using a "rule of reason" standard intended to balance the possible competitive benefits it produces against the potential costs. Agreements like "naked" price fixing are per se violations of antitrust law, automatically treated as illegal if detected.
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Trade restrictions tend to preserve ________ in the protected industries and lead to ________ in other industries
A) no jobs; increased productivity B) almost all jobs; economic growth C) relatively few jobs; job losses D) well over half of the jobs; price decreases
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one of the tickets is $10
A) only Anya and Basil will buy tickets. B) Celeste's consumer surplus is $25. C) the total consumer surplus from the purchase of tickets will be $61. D) everyone will buy a ticket except for Esther.
If we assume perfect information, perfect mobility of resources, and no transactions costs, then there is little need for firms
a. True b. False
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index rises, and current international transactions become more negative (or less positive). b. There is not enough information to determine what happens to these two macroeconomic variables. c. The GDP Price Index rises, and current international transactions become more positive (or less negative). d. The GDP Price Index and current international transactions remain the same. e. The GDP Price Index falls, and current international transactions become more negative (or less positive).