Weekly Review Quiz as of 2012-04-05
Economics: Micro
Merger to Mean More Rx by Mail
by Timothy W. Martin
04/03/2012
http://online.wsj.com/article/SB10001424052702303816504577319372702722002.html
1. Express Scripts Inc. and Medco Health Solutions Inc. won government approval Monday for
their $29.1 billion merger. Opponents of the deal, led by pharmacy and consumer advocacy
groups, argue the merger will
a) shrink competition.
b) potentially raise prices.
c) limit where patients can get their prescriptions filled.
* d) all of the above.
e) none of the above.
2. In approving the Express Scripts Inc. and Medco Health Solutions Inc. merger, the Federal
Trade Commission found that the pharmacy-benefit manager (PBM) market is served by
a) “only Express Scripts and Medco Health Solutions.”
b) “a tightly-controlled group of market leaders.”
c) "numerous, vigorous traditional market leaders."
* d) "numerous, vigorous competitors who are expanding and winning business from traditional
market leaders."
e) none of the above.
U.S. Airways Pushes Merger
by Mike Spector and Susan Carey
04/04/2012
http://online.wsj.com/article/SB10001424052702304023504577322010253299758.html
3. AMR Corp., parent company of American Airlines, filed for bankruptcy in November 2011,
saying it is determined to
a) slash costs.
b) boost sales.
c) emerge from bankruptcy court as a stand-alone company.
* d) all of the above.
e) none of the above.
4. American Airlines creditors have engaged in informal merger talks with the following airline
about a merger with American Airlines:
a) Delta Airlines Inc.
b) Spirit Airlines Inc.
c) Southwest Airlines Co.
d) United Continental Holdings Inc.
* e) US Airways Group Inc.
RIM Weighs Bleak Options
by Will Connors, Anupretta Das and Gina Chon
03/31/2012
http://online.wsj.com/article/SB10001424052702303816504577313952155314034.html
5. The Wall Street Journal reports that Research In Motion Ltd., embattled maker of BlackBerry
phones, faces two bleak options:
a) Enter into bankruptcy, or find a willing buyer.
b) Enter into bankruptcy, or attempt a bold turnaround.
* c) Attempt a bold turnaround, or find a willing buyer.
d) Sell off its less-profitable divisions, or attempt a bold turnaround.
e) Sell off its less-profitable divisions, or find a willing buyer.