Which of the Following Statements About Section 5 of the FTC

question 56

Multiple Choice

Which of the following statements about Section 5 of the FTC Act and anticompetitive behavior is false?

• A)Section 5 empowers the Commission to prevent "unfair methods of competition."
• B)The Commission has statutory authority to enforce the Clayton Act.
• C)Section 5 only reaches anticompetitive behavior covered by other antitrust statutes.
• D)Section 5 enables the FTC to proceed against incipient antitrust violations.

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Definitions:

Market Efficiency

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Security Prices

The market value for tradable financial instruments such as stocks, bonds, and derivatives at any given time.

Efficient-Market Hypothesis

The theory that all available information is already reflected in securities prices, therefore making it impossible to consistently achieve higher returns than the overall market.