Chapter 7- Section 3 Flashcards
What was the purpose of the Sherman antitrust act?
To restrict monopolies and protect trade and commerce
What was the antitrust legislation of the late 1800s trying to restrict?
Monopolies, combinations, and trusts
What was the purpose of the Clayton antitrust act of 1914?
It gave the government greater power against monopolies (no price discrimination, FTC made, cease and desist order)
And FTC ruling requiring a company to stop and unfair business practice, such as price-fixing, that reduces or limits competition among firms
A cease and desist order
The practice of charging customers different prices for the same product
Price discrimination
Under what conditions are monopolies acceptable?
Natural and government regulated as if there were competition
What is the purpose of public disclosure?
To preserve competition and provide more information to the consumer
What is the advantage to the public of truth in advertising laws?
Consumers know what they are buying
What kind of information regarding business and government is available on the Internet?
Price earnings, reports, government documents, and studies
What actions led to a modification of free enterprise?
Regulating market sectors
What characteristics make the United States economy a “mixed free enterprise” system?
Regulating market failures
Administers antitrust laws for bidding unfair competition, price-fixing, and other deceptive practices
The Federal Trade Commission
Investigates accidents at the workplace; enforces regulations to protect employees at work
Occupational safety and health administration
Licenses and regulates radio and television stations and regulates interstate telephone, telegraph rates and services
Federal Communications Commission
Enforces laws to ensure purity, effectiveness, and truthful labeling of food, drugs, and cosmetics; inspects production and shipment of these products
Food and drug administration
