The purpose of antitrust legislation is to
- A. remove obstacles creating a trade imbalance.
- B. ensure fair competition in an open-market economy.
- C. prevent a nation's currency from losing too much value.
- D. improve consumer access to corporate financial information
Correct Answer & Rationale
Correct Answer: B
Antitrust legislation is designed to promote fair competition within an open-market economy, preventing monopolistic practices that can harm consumers and stifle innovation. Option A focuses on trade imbalances, which relate more to trade policies than to antitrust laws. Option C addresses currency valuation, a topic more relevant to monetary policy than competition laws. Option D concerns financial transparency, which, while important, is not the primary aim of antitrust regulations. Thus, ensuring fair competition is the central goal of antitrust legislation, safeguarding consumer interests and promoting a healthy market environment.
Antitrust legislation is designed to promote fair competition within an open-market economy, preventing monopolistic practices that can harm consumers and stifle innovation. Option A focuses on trade imbalances, which relate more to trade policies than to antitrust laws. Option C addresses currency valuation, a topic more relevant to monetary policy than competition laws. Option D concerns financial transparency, which, while important, is not the primary aim of antitrust regulations. Thus, ensuring fair competition is the central goal of antitrust legislation, safeguarding consumer interests and promoting a healthy market environment.
Other Related Questions
Based on the obituary, 'scientific management' meant
- A. doing work in a more productive manner.
- B. creating better tools for the workplace.
- C. getting rid of unskilled workers.
- D. hiring more inventive workers.
Correct Answer & Rationale
Correct Answer: A
Scientific management focuses on improving efficiency and productivity in the workplace by analyzing and optimizing work processes. Option A captures this essence, emphasizing a more productive approach to tasks. Option B, while relevant, is too narrow as scientific management encompasses more than just tool creation; it involves systematic study of workflows. Option C misinterprets the philosophy, which does not advocate for eliminating unskilled workers but rather seeks to enhance overall productivity through better management techniques. Option D suggests hiring more inventive workers, which is not a core principle of scientific management; it prioritizes process optimization over workforce creativity.
Scientific management focuses on improving efficiency and productivity in the workplace by analyzing and optimizing work processes. Option A captures this essence, emphasizing a more productive approach to tasks. Option B, while relevant, is too narrow as scientific management encompasses more than just tool creation; it involves systematic study of workflows. Option C misinterprets the philosophy, which does not advocate for eliminating unskilled workers but rather seeks to enhance overall productivity through better management techniques. Option D suggests hiring more inventive workers, which is not a core principle of scientific management; it prioritizes process optimization over workforce creativity.
Which policy would be most effective to increase Grand Coast's comparative advantage over Toland?
- A. Raise taxes on factories and mills
- B. Encourage more workers to pursue fishing
- C. Maintain spending on infrastructure projects
- D. Improve technology used to produce timber
Correct Answer & Rationale
Correct Answer: B
Encouraging more workers to pursue fishing enhances Grand Coast's comparative advantage by capitalizing on its natural resources and existing industry strengths. This shift allows for specialization, leading to increased efficiency and production in fishing, where Grand Coast may already excel compared to Toland. Raising taxes on factories and mills (A) could deter investment and reduce manufacturing output, weakening economic competitiveness. Maintaining spending on infrastructure projects (C) may improve overall economic conditions but does not directly target enhancing comparative advantage. Improving technology for timber production (D) could be beneficial but may not align with Grand Coast's most advantageous industries compared to fishing.
Encouraging more workers to pursue fishing enhances Grand Coast's comparative advantage by capitalizing on its natural resources and existing industry strengths. This shift allows for specialization, leading to increased efficiency and production in fishing, where Grand Coast may already excel compared to Toland. Raising taxes on factories and mills (A) could deter investment and reduce manufacturing output, weakening economic competitiveness. Maintaining spending on infrastructure projects (C) may improve overall economic conditions but does not directly target enhancing comparative advantage. Improving technology for timber production (D) could be beneficial but may not align with Grand Coast's most advantageous industries compared to fishing.
Which point on this PPF graph indicates an inefficient use of the country's resources?
- A. V
- B. X
- C. Y
- D. Z
Correct Answer & Rationale
Correct Answer: A
Point A on the PPF graph indicates an inefficient use of the country's resources because it lies inside the production possibilities frontier (PPF). This suggests that the economy is not utilizing all available resources effectively, resulting in lower production levels than possible. Point B (X), C (Y), and D (Z) all lie on the PPF, indicating efficient resource use where maximum production is achieved. These points represent combinations of goods that utilize resources fully, reflecting optimal economic performance. Thus, only point A signifies inefficiency.
Point A on the PPF graph indicates an inefficient use of the country's resources because it lies inside the production possibilities frontier (PPF). This suggests that the economy is not utilizing all available resources effectively, resulting in lower production levels than possible. Point B (X), C (Y), and D (Z) all lie on the PPF, indicating efficient resource use where maximum production is achieved. These points represent combinations of goods that utilize resources fully, reflecting optimal economic performance. Thus, only point A signifies inefficiency.
Which basic principle of governance in the U.S. maintains that legislatures write the laws, executives carry out the laws, and courts interpret the laws?
- A. Federalism
- B. Limited government
- C. Separation of powers
- D. Popular sovereignty
Correct Answer & Rationale
Correct Answer: C
The principle of governance that ensures legislatures write laws, executives enforce them, and courts interpret them is known as the Separation of Powers. This framework prevents any one branch from becoming too powerful, promoting a system of checks and balances essential for democracy. Option A, Federalism, refers to the division of power between national and state governments, not the roles of branches. Option B, Limited Government, emphasizes restrictions on government power but does not specifically address the functions of branches. Option D, Popular Sovereignty, focuses on the authority of the people in governance, rather than the separation of government functions.
The principle of governance that ensures legislatures write laws, executives enforce them, and courts interpret them is known as the Separation of Powers. This framework prevents any one branch from becoming too powerful, promoting a system of checks and balances essential for democracy. Option A, Federalism, refers to the division of power between national and state governments, not the roles of branches. Option B, Limited Government, emphasizes restrictions on government power but does not specifically address the functions of branches. Option D, Popular Sovereignty, focuses on the authority of the people in governance, rather than the separation of government functions.