A. Economic Theory tells us that regulation is inherently inefficient as compared to free markets. Why then does the government persist in imposing regulations on various industries?

B. In light of the inefficiency issue, should the Federal government insist on reforming the regulations on the financial industry currently in place? Why?

C. A story in the WSJ not too long ago suggested that the Justice Department might file legal actions against a number of large oil companies because there is evidence that they shared salary information on their professional and technical staff and agreed not to hire each other's employees. Should this be considered a violation of antitrust law? Why?

D. Multinational firms must now deal with regulations within various national borders and within the limits of regional trading blocs such as the EU and NAFTA. Is it likely that the WTO will ever be able to standardize such regulations? Explain.

E. In recent years courts within the U.S. have tended to follow the "rule of reason" approach in deciding antitrust cases as opposed to the "per se rule." Explain the difference between the two approaches. Which of the two do you favor? Why?