Which of the Following Is a Question Answered with Positive

question 78

Multiple Choice

Which of the following is a question answered with positive economic analysis?

• A) Should the college reduce tuition for out-of-state residents?
• B) Should the college charge higher tuition for part-time students?
• C) If the college increased its eligibility requirements for enrollment, will class sizes decline?
• D) Should the college eliminate its athletic program to cut its costs?

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Definitions:

Interlocking Directorates

The practice of having the same individuals serve on the boards of directors of multiple companies, potentially reducing competition.

Clayton Act

A United States antitrust law enacted in 1914, aimed at preventing anticompetitive practices in their incipiency.

Federal Trade Commission Act

The federal law of 1914 that established the Federal Trade Commission.

Alcoa Case

A 1945 case in which the courts ruled that the possession of monopoly power, no matter how reasonably that power had been used, was a violation of the antitrust laws; temporarily overturned the rule of reason applied in the U.S. Steel case.