CFA Review 3

The first antitrust law to include a provision prohibiting price setting and price discrimination was the 

• Interstate Commerce Act.
• Sherman Antitrust Act.
• Clayton Antitrust Act.
• Federal Trade Commission Act.

Which government action would BEST prevent the practice of collusion?

• passage of reforms to improve hiring for civil service jobs
• creation of antitrust legislation by the federal government
• establishment of an executive order to segregate the military
• approval of an international agreement to increase trade

Which government action is MOST likely to achieve this candidate's goal? 
"If elected, I promise to promote steady economic growth by adopting business-friendly policies." -- Candidate for State Governo 

• increased state taxes
• fewer public serrvices
• more state borrowing
• reduced government regulation

Which activity is a modern function of the Federal Trade Commission?
"When the FTC was created in 1914, its purpose was to prevent unfair methods of competition in commerce as a part of the battle to  'bust the trusts.' Over the years, Congress passed additional laws giving the agency greater authority to police anticompetitive practices." -- Federal Trade Commission

• investigating unfair work place labor practicies
• regulating corporate mergers to ensure market competition
• regulating the money supply by establishing interest rates
• developing policies for companies to compete globally

Which economic change best explains a reduction in coffee prices?

• increased need for subsistence farming
• improved technology for commercial production
• rapid wage increases for factory workers
• adoption of tariffs on imported goods