BE 2.05 EC-912 Vocabulary

What is the purpose of the Celler-Kefauver Antimerger Act?

• To prevent specific business actions that might restrict competition

• To protect competitors from takeovers that would limit competition

• To establish a regulatory agency to monitor business activities

• To promote nonprice competition between businesses

Which federal regulation established the Federal Trade Commission (FTC)?

• Celler-Kefauver Antimerger Act

• Clayton Act

• Federal Trade Commission Act

• Monopolistic Competition Act

What is direct competition?

• Rivalry between businesses that offer similar goods or services

• Rivalry between businesses that offer dissimilar goods or services

• Rivalry between businesses that control the market

• Rivalry between businesses that focus on nonprice competition

What does it mean for a business to be efficient?

• Using minimum amounts of resources to the best advantage

• Offering exclusive agreements to customers

• Engaging in price competition with competitors

• Controlling the market through monopolistic practices

What is an exclusive agreement?

• An agreement that forbids customers from buying goods and services from competitors

• An agreement that promotes nonprice competition between businesses

• An agreement that establishes a regulatory agency to monitor business activities

• An agreement that encourages direct competition between businesses

What is the purpose of the Federal Trade Commission Act?

• To prevent specific business actions that might restrict competition

• To protect competitors from takeovers that would limit competition

• To establish a regulatory agency to monitor business activities

• To promote nonprice competition between businesses

What is indirect competition?

• Rivalry between businesses that offer similar goods or services

• Rivalry between businesses that offer dissimilar goods or services

• Rivalry between businesses that control the market

• Rivalry between businesses that focus on nonprice competition

What is market structure?

• The type of market in which businesses operate

• The rivalry between businesses to attract customer dollars

• The use of price to attract customer dollars

• The minimum amount of resources used by a business

What is monopolistic competition?

• A market structure in which a market is controlled by one supplier

• A market structure in which there are relatively few sellers

• A market structure in which many businesses sell similar products with few differences

• A market structure in which there are many businesses selling identical products

What is a monopoly?

• A market structure in which a market is controlled by one supplier

• A market structure in which there are relatively few sellers

• A market structure in which many businesses sell similar products with few differences

• A market structure in which there are many businesses selling identical products