Your Questions About Merger And Acquisition Strategies

Maria asks…

Under the American system of regulation, most regulars are selected from what?

Under the American system of regulation, most regulars are selected from

A) politicians and their friends.
B) the industry that is to be regulated.
C) consumer advocacy groups.
D) university professors who understand the nature of the industry and who understand the true interests of consumers.
If regulators force a natural monopoly to price as a perfectly competitive firm would, the natural monopolist
A) will earn higher economic profits.
B) will earn an economic loss.
C) will expand its output.
D) will experience a rise in long-term average costs.
Cost-of-service regulation allows regulated companies to charge prices that
A) reflect the cost of regulating the industry, plus the marginal cost of the product.
B) allow monopoly profits to the producer.
C) reflect the actual average cost of providing the services to the customer.
D) are determined by competition in other geographic markets.
Which of the following refers to the capture hypothesis of regulation?
A) The ability of the government to capture monopoly profits.
B) The control of regulatory agencies by firms in an industry.
C) Consumer cost savings captured through regulation.
D) Horizontal mergers.
This agency is responsible for protecting consumers from products posing fire, electrical, chemical, or mechanical hazards or dangers to children.
A) Environmental Protection Agency
B) Consumer Product Safety Commission
C) Equal Employment Opportunity Commission
D) Occupational Safety and Health Administration
If a natural monopolist is unregulated then
A) the monopoly will produce efficiently from society’s point of view.
B) the monopoly will produce inefficiently from society’s point of view.
C) the monopolist will be earning just a normal rate of return on investment.
D) the monopolist will determine the profit maximizing quantity by equating marginal cost to the demand curve.
Suppose that a regulated industry realizes an increase in the price of inputs used to produce the good. According to the capture theory we would expect
A) prices to increase by a little immediately and profits to decrease by a lot.
B) there will be some increase in price but not immediately.
C) no increase in price.
D) a quick increase in price maintaining profits in the industry.
Which of the following are exempt from the antitrust laws?
A) Colleges and universities
B) All professional athletes
C) Labor unions
D) Deregulated industries
All of the following are exempt from antitrust enforcement except
A) professional baseball.
B) labor unions.
C) hospitals.
D) television and radio stations.
The Supreme Court has defined the offense of monopolization to
A) be when only one firm exists in an industry.
B) occur when asymmetric information exists.
C) include the possession of monopoly power and the willful maintenance of that power.
D) be unfair acts in the practice of commerce.

admin answers:

Under the American system of regulation, most regulars are selected from

A) politicians and their friends.
If regulators force a natural monopoly to price as a perfectly competitive firm would, the natural monopolist
B) will earn an economic loss.
Cost-of-service regulation allows regulated companies to charge prices that
A) reflect the cost of regulating the industry, plus the marginal cost of the product.
Which of the following refers to the capture hypothesis of regulation?
A) The ability of the government to capture monopoly profits.
This agency is responsible for protecting consumers from products posing fire, electrical, chemical, or mechanical hazards or dangers to children.
B) Consumer Product Safety Commission

decide the rest

Helen asks…

Lydia and Wickham pose a danger to the Bennet family as long as they are unmarried and unchecked.?

But as a married couple, with little improvement in their behavior, this danger vanishes.In Pride and Prejudice marriage serves many functions. It is a romantic union, a financial merger, and a vehicle for social regulation. Scholar and writer Mary Poovey said that Austen’s goal “is to make propriety and romantic desire absolutely congruent.”Think about all the marriages in the book with respect to how well they are fulfilling those functions.Is marriage today still an institution of social regulation?

admin answers:

Sorry, Shaima, but I doubt anyone on here is going to do your homework for you.

John asks…

Which is the most “revealing & disturbing” quote?

he illegal we do immediately. The unconstitutional takes a little longer.
– Henry Kissinger, National Security Advisor and Secretary of State under Richard Nixon, and Secretary of State under Gerald Ford

We’ll know our disinformation program is complete when everything the American public believes is false.
– William Casey, CIA Director (from first staff meeting in 1981)

The CIA owns everyone of any significance in the major media.
– William Colby, former CIA director

The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in Democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. Our minds are molded, our tastes are formed, our ideas suggested, largely by men we have never
heard of.
– Edward Bernays (1891-1995) “Father” of modern public relations (PR) and director of the U.S. Committee on Public Information during World War I, on government propaganda

The world is divided in to three classes of people: a very small group that makes things happen, a somewhat larger group that watches things happen, and the great multitude which never knows what happened.
– Nicholas Murray Butler, President of Columbia University, 1931 Nobel Peace Prize winner

If the personal freedoms guaranteed by the Constitution inhibit the government’s ability to govern the people, we should look to limit those guarantees.
– Bill Clinton

The purpose of government is to rein in the rights of the people.
– Bill Clinton

We can’t be so fixated on our desire to preserve the rights of ordinary Americans.
– Bill Clinton, U.S.A. Today, 11 March 1993

It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.
– Henry Ford

The threat of environmental crisis will be the ‘international disaster key’ that will unlock the New World Order.
– Mikhail Gorbachev

Make the lie big, make it simple, keep saying it, and eventually they will believe it.
–Adolf Hitler

It also gives us a very special, secret pleasure to see how unaware the people around us are of what is really happening to them.
– Adolf Hitler

The individual is handicapped by coming face to face with a conspiracy so monstrous he cannot believe it exists,..even though it does exist.
– J. Edgar Hoover

In searching for a new enemy to unite us, we came up with the idea that pollution, the threat of global warming, water shortages, famine and the like would fit the bill … All these dangers we will claim human intervention caused them and it is only through manipulating attitudes and behaviour that they can be overcome. The real enemy, then, is humanity itself.”
– Alexander King, Bertrand Schneider – founder and secretary, respectively, of the Club of Rome – The First Global Revolution, pp.104-105

Today Americans would be outraged if U.N. troops entered Los Angeles to restore order; tomorrow they will be grateful. This is especially true if they were told there was an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead with world leaders to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well being granted to them by their world government.
– Henry Kissinger

Fascism should more properly be called corporatism because it is the merger of state and corporate power.
– Benito Mussolini

Behind the ostensible government sits enthroned an invisible government owing no allegiance and acknowledging no responsibility to the people.
– Theodore Roosevelt

The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the government ever since the days of Andrew Jackson, and I am not wholly excepting the administration of W.W. (Woodrow Wilson.) The country is going through a repetition of Jackson’s fight with the Bank of the United States—only on a far bigger and broader basis.
– Franklin D Roosevelt

Every time we do something you tell me America will do this and will do that… I want to tell you something very clear: Don’t worry about American pressure on Israel. We, the Jewish people, control America, and the Americans know it.
– Ariel Sharon, Israeli Prime Minister, October 3, 2001

The easiest way to gain control of the population is to carry out acts of terror the public will clamor for such laws if the personal security is threatened.
– Joseph Stalin

Thank you for your answers in advance.

admin answers:

I can’t pick one……
They are all disturbing.

Donna asks…

Current Economic Woes – Who’s to blame?

I have been reading tripe from democrats and republicans alike blaming the current administration for this country’s financial woes. Allow me to set the record straight on some of it.

1977: Pres. Jimmy Carter signs the Community Reinvestment Act into Law. The law pressured financial institutions to extend home loans to those who would otherwise not qualify. The Premise: Home ownership would improve poor and crime-ridden communities and neighborhoods in terms of crime, investment, jobs, etc.

Results: Statistics bear out that it did not help.

Question: How did the government get so deeply involved in the housing market?

Answer: See below to find out who is covering up their guilt !

1992: Republican representative Jim Leach (IO) warned of the danger that Fannie and Freddie were changing from being agencies of the public at large to money machines for the principals and the stockholding few.

1993: Clinton extensively rewrote Fannie Mae and Freddie Mac’s rules turning the quasi-private mortgage-funding firms into semi-nationalized monopolies dispensing cash and loans to large Democratic voting blocks and handing favors, jobs and contributions to political allies. This potent mix led inevitably to corruption and now the collapse of Freddie and Fannie.

1994: Despite warnings, Clinton unveiled his National Home-Ownership Strategy which broadened the CRA in ways congress never intended.

1995: Congress, about to change from a Democrat majority to Republican, Clinton orders Robert Rubin’s Treasury Dept to rewrite the rules. Robt. Rubin’s Treasury reworked rules, forcing banks to satisfy quotas for sub-prime and minority loans to get a satisfactory CRA rating. The rating was key to expansion or mergers for banks. Loans began to be made on the basis of race and little else.

1997 – 1999: Clinton, bypassing Republicans, enlisted Andrew Cuomo, then Secretary of Housing and Urban Development, allowing Freddie and Fannie to get into the sub-prime market in a BIG way. Led by Rep. Barney Frank and Sen. Chris Dodd, congress doubled down on the risk by easing capital limits and allowing them to hold just 2.5% of capital to back their investments vs 10% for banks. Since they could borrow at lower rates than banks their enterprises boomed.

With incentives in place, banks poured billions in loans into poor communities, often ‘no doc’, ‘no income’, requiring no money down and no verification of income. Worse still was the cronyism: Fannie and Freddie became home to out-of work-politicians, mostly Clinton Democrats. 384 politicians got big campaign donations from Fannie and Freddie. Over $200 million had been spent on lobbying and political activities. During the 1990′s Fannie and Freddie enjoyed a subsidy of as much as $182 Billion, most of it going to principals and shareholders, not poor borrowers as claimed.

Did it work? Minorities made up 49% of the 12.5 million new homeowners but many of those loans have gone bad and the minority home ownership rates are shrinking fast.

1999: New Treasury Secretary, Lawrence Summers, became alarmed at Fannie and Freddie’s excesses. Congress held hearings the ensuing year but nothing was done because Fannie and Freddie had donated millions to key congressmen and radical groups, ensuring no meaningful changes would take place ‘We manage our political risk with the same intensity that we manage our credit and interest rate risks,’ Fannie CEO Franklin Raines, a former Clinton official and current Barack Obama advisor, bragged to investors in 1999.

2000: Secretary Summers sent Undersecretary Gary Gensler to Congress seeking an end to the ‘special status’. Democrats raised a ruckus as did Fannie and Freddie, headed by politically connected CEO’s who knew how to reward and punish. ‘We think that the statements evidence a contempt for the nation’s housing and mortgage markets’ Freddie spokesperson Sharon McHale said. It was the last chance during the Clinton era for reform.

2001: Republicans try repeatedly to bring fiscal sanity to Fannie and Freddie but Democrats blocked any attempt at reform; especially Rep. Barney Frank and Sen Chris Dodd who now run key banking committees and were huge beneficiaries of campaign contributions from the mortgage giants.

2003: Bush proposes what the NY Times called ‘the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago’. Even after discovering a scheme by Fannie and Freddie to overstate earnings by $10.6 billion to boost their bonuses, the Democrats killed reform.

2005: Then Fed chairman Alan Greenspan warns Congress: ‘We are placing the total financial system at substantial risk’.

Sen. McCain, with two others, sponsored a Fannie/Freddie reform bill and said, ‘If congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to th

admin answers:

Both parties are responsible the only way we are going to fix this is if we look at the whole picture it doesn’t matter who is perceived to be the most responsible for this mess because everybody made a mess of things trying to push their own agendas without looking at the whole picture now what we need is for everybody to start working togather to fix things now if our senators could stop acting like a bunch of spoiled rotten children and grow up maybe things can start to get better but if we as country cant manage to grow up and stop whining then things are only going to get worse

William asks…

Economics help please!?

I did most of the work, and these are the answers that I just couldn’t get! PLEASE, PLEASE help me!!!!
10 points for 10 questions! Please help me!

1.) Which of the following is not one of money’s main uses?
medium of exchange
unit of account
measure of worth
store of wealth

2.) Whether we look at laws, prophetic teachings, psalms; or the gospel of Jesus, we find the constantly reiterated conviction that all oppression, including economic oppression, is _____ the Divine will.
contrary to
accepted as
caused by
not enough information

3.) Usually the short term goal of open market operations is to:
create more jobs.
achieve a specific long term interest rate target.
achieve a specific short term interest rate target.
increase stock market values.

4.) When used as part of a commodity money system, which of the following is not a function of paper currency?
to reduce the danger of transporting gold
to reduce the possibility of debasement of coins
to avoid the reduction in circulating medium to hoarding and losses
to avoid the decrease in value of precious stones

5.) The gold standard, in theory, limits the power of governments to cause _______ by excessive issue of paper currency.
price inflation
wealth and poverty

6.) In practice all types of monetary policy involve modifying the amount of base currency in circulation. This process of changing the liquidity of base currency is called _______.
interest rate adjustment
open market operations
none of the above

7.) An anti-trust law is a policy or action that seeks to:
promote monopolistic powers within a market.
curtail monopolistic powers within a market.
protect monopolistic mergers from discrimination.
protect small business owners from dishonest dealings.

8.) Approximately ____ of all above-ground gold is held in reserves by central banks.

9.) A person who takes the risk of organizing and operating a new business venture is called a:
sole proprietor.

10.) What did America experience in the 1920′s?
An economic boom
An economic bust
A long bull market
A long bear market

admin answers:

3) b
5) a
6) c
7) b
9) c
10) b and d, probably d?

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