i12.Indiana State University ECON 200

True / False 1. The Clayton Act of 1914 makes price discrimination, exclusive dealers, tying contracts, and the acquisition of competing companies' stock illegal when their effects "substantially lessen competition or tend to create a monopoly." a. True b. Fals e ANSWER: True POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: The role of government KEYWORDS: Bloom's: Knowledge 2. The Wheeler-Lea Act of 1938 was designed to close the merger loophole that remained in the Clayton Act. a. True b. Fals e ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: The role of government KEYWORDS: Bloom's: Knowledge 3. The Herfindahl index for a monopoly is 1,000. a. True b. Fals e ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: Monopoly KEYWORDS: Bloom's: Application 4. Natural monopolies can be regulated based on price, profit, or output. a. True b. Fals e ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Analyti