Describe the importance and major features of the Sherman Act of 1890
What will be an ideal response?
The act made monopoly and practices that restrained trade, such as price fixing among firms and collusion over market share, criminal activity. Parties injured by these types of actions could bring suits against firms and had the potential to earn treble damages. The court was given the power to issue injunctions against illegal business practices that restrained trade and was also given the power to dissolve firms that conspired to control a market or industry. The law, however, was flawed in part because of the vagueness in the definition about what were legal and what were illegal business practices. Further clarification was given in the Clayton Act of 1914.
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Rewarding or penalizing personal characteristics of a worker that are unrelated to his or her productivity is a description of
A) a negative externality. B) a labor quota. C) labor market discrimination. D) a non-income fringe benefit.
As output increases, total variable cost:
A. increases more rapidly than does total cost. B. increases continuously at a decreasing rate. C. increases at a decreasing rate and then at an increasing rate. D. increases at a constant rate.
Which of the following may NOT serve as a possible chain reaction for either fiscal or monetary policy?
A) G? ? Y? ? C? ? Y? ? C?.... B) T? ? Y? ? C? ? Y? ? C?.... C) M? ? i? ? I? ? Y? ? C?.... D) M? ? i? ? I? ? Y? ? C?....
If a union is successful in negotiating a wage rate which is above the market clearing wage, then which of the following would not occur?
A) The higher wages attract more workers leading to a shortage of jobs. B) Management may replace part of the workforce with machinery. C) To handle the surplus of labor the union will form a closed shop. D) The union may shift the supply of labor curve by developing methods to ration jobs.