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According to the theory of creative destruction, a. hurricanes and tornadoes stimulate

   According to the theory of creative destruction,

a. hurricanes and tornadoes stimulate the economy

b. technological change destroys competitive markets

c. monopolies engage in self-destructive behavior

d. competition between industries can break a monopoly

e. price wars break out when new products are introduced

132.              According to the theory of creative destruction, the greatest threat to a monopolist
                            producer of electric typewriters is likely to be

a. government regulation

b. international competition

c. the entry of new electric typewriter producers

d. growth in the computer industry

e. stockholders demanding increased efficiency

133.              Economists who favor bigness in firms point to which of the following to support
                            their argument?

a. economies of scale

b. perfect competition

c. need for antitrust

d. advantages of marginal cost pricing

e. constant returns to scale

134.              A patent gives an innovating firm how many years of legal protection from competition?

a. 1 year

b. 5 years

c. 10 years

d. 20 years

e. 23 years

135.              The government sometimes grants a firm the exclusive right to market a good or process
                            for a fixed period of time. This is called

a. laissez-faire

b. a patent

c. contestable markets

d. economies of scale

e. monopolistic competition

136.              Laissez-faire advocates believe that the government should

a. nationalize certain industries

b. not provide tax incentives to firms for research

c. foster an environment that is favorable to research

d. actively use price controls when excess profits are earned

e. outlaw monopolies which use research to further their power

137.              A law that encourages market competition by prohibiting firms from gaining or
                            exercising excessive market power is

a. a patent

b. in conflict with the Constitution

c. supported by laissez-faire advocates

d. impossible to enforce

e. an antitrust law

138.              The first piece of antitrust legislation in the United States to deal with price
                            discrimination was the

a. Clayton Act

b. FTC Act

c. Cellar-Kefauver Act

d. Robinson-Patman Act

e. Sherman Antitrust Act

139.              The antitrust legislation that was designed to help small stores survive competition with
                            large retail chains was the

a. FTC Act

b. Sherman Antitrust Act

c. Cellar-Kefauver Act

d. Robinson-Patman Act

e. Clayton Act

140.              The antitrust legislation that made it illegal for a firm to buy a competitor’s voting stock
                            was the

a. Sherman Antitrust Act

b. Cellar-Kefauver Act

c. FTC Act

d. Robinson-Patman Act

e. Clayton Act

Dec 09 2019 View more View Less

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