Which of the Following Is False Regarding the Federal Trade

question 58

Multiple Choice

Which of the following is false regarding the Federal Trade Commission Act?

• A) It was passed when Congress passed the Clayton Act.
• B) It prohibits unfair and deceptive methods of competition.
• C) Any anticompetitive behavior not prohibited by the Sherman Act or the Clayton Act is illegal under the act.
• D) The language of the act permits the Federal Trade Commission to investigate antitrust claims.
• E) While the language of the act permits the Federal Trade Commission to investigate antitrust claims, it may not bring antitrust claims against violators.

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Definitions:

Profit And Loss

The financial statement that summarizes revenues, costs, and expenses to show the net profit or loss of a business over a specific time period.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction, which are not reflected in the transaction's price, such as pollution caused by manufacturing.

Special-Interest Effect

The impact on policy or decision-making driven by the concentrated benefits to a small group while the costs are dispersed among the general population.

Pork-Barrel Politics

Refers to the allocation of public funds for projects designed primarily to benefit constituents of a politician in return for their political support.