Which of the Following Statements Is True

question 156

Multiple Choice

Which of the following statements is true?

• A)The active antitrust perspective believes that competitive market forces will automatically and actively reduce a firm's monopoly power in the long run.
• B)The active antitrust perspective believes that the government should play the role of officials and umpires and enforce the rules of the competitive game.
• C)The laissez-faire perspective views firms as players in a competitive game who will sometimes violate the rules in order to gain a huge advantage over others.
• D)The laissez-faire perspective believes that an active enforcement of antitrust policy is the only way to reduce the monopoly power of giant firms.

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Definitions:

Joseph Stiglitz

An American economist and professor known for his work on income distribution, risk, and information economics, and a recipient of the Nobel Memorial Prize in Economic Sciences.

NAFTA Treaty

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries and facilitate the free flow of goods and services.

Trade Balance

The difference between a country's exports and imports over a certain period, indicating the net earnings from trade.

European Common Market

The European Common Market, also known as the European Single Market, is an integrated territory across the European Union that allows for the free movement of goods, services, capital, and people.