The Sherman Act

question 62

Multiple Choice

The Sherman Act:

• A) applies to acts committed overseas by U.S. corporations.
• B) would not apply to an act committed in the United States by a foreign corporation.
• C) would not apply to an act overseas by a 100 percent-owned foreign subsidiary of a U.S. corporation.
• D) never applies to acts committed outside the U.S.

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Definitions:

External Costs

Costs of an economic activity that are not borne by the parties involved in the transaction but are instead imposed on third parties or the society at large.

Peak Driving

Peak driving refers to periods of high demand for gasoline, often coinciding with certain times of the year like summer holidays, resulting in higher gasoline prices due to increased consumption.

Pollution Rights

Tradable permits allowing the holder to emit a certain amount of pollution, used to control the level of pollutants by setting a market price for emissions.