Figure 81 Depicts the Supply and Demand Schedules of Calculators for for Greece

question 145

Multiple Choice

Figure 8.1 depicts the supply and demand schedules of calculators for Greece, a "small" country that is unable to affect the world price. Greece's supply and demand schedules of calculators are respectively depicted by SG and DG. Assume that Greece imports calculators from either Germany or France. Suppose Germany is the world's low-cost producer who can supply calculators to Greece at $20 per unit, while France can supply calculators at $30 per unit.

Figure 8.1. Effects of a Customs Union

-Consider Figure 8.1.The value of the trade creation effect resulting from the Greece/France customs union equals

• A) $5.
• B) $10.
• C) $15.
• D) $20.

Identify the roles and powers of administrative bodies in enforcing antitrust laws.

Recognize the concepts of "restraints of trade," monopoly practices, and the legal repercussions for violating antitrust laws.

Compare and contrast the major antitrust laws: Sherman Act, Clayton Act, and Federal Trade Commission Act.

Analyze the implications of antitrust law enforcement on corporations, including consent decrees and fines.

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Definitions:

Exclusive Contracts

Agreements that restrict individuals or entities to engage or transact with only one party, commonly seen in professional sports and the entertainment industry.

Adhesion Contract

A standard-form contract prepared by one party, with little or no negotiation with the weaker party, often in situations where the choices or bargaining power is limited.

Vaudeville Star

A performer who was popular on the vaudeville circuit, a series of variety entertainment shows in the late 19th and early 20th centuries.

The Jazz Singer

The first feature-length motion picture with synchronized dialogue sequences, marking a pivotal moment in the transition from silent to sound films.