CIMA BA1 · Chapter 8 · Question 7 of 9
Which of the following is a typical function of a national competition authority?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Investigating proposed mergers that may substantially lessen competition
Explanation
Competition authorities investigate mergers, cartels and abuse of a dominant position, and can block or impose conditions on mergers that would reduce competition. Interest rates are set by the central bank and tax collection is handled by the tax authority.
More Market failure, externalities and competition policy MCQs
- Q9Which of the following is an argument AGAINST the privatisation of a state-owned utility?
- Q1A pure public good is characterised by being:
- Q2Where the production of a good creates a negative externality such as pollution, a free market will tend to:
- Q3Which of the following is generally treated as a merit good?
- Q4A Pigouvian tax intended to correct a negative production externality should ideally be set equal to: