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ECONOMICS HIGHER LEVEL PAPER 3 Tuesday 14 November 2000 (morning) 2 hours N00/330/H(3) INTERNATIONAL BACCALAUREATE BACCALAURÉAT INTERNATIONAL BACHILLERATO INTERNACIONAL 880-042 6 pages INSTRUCTIONS TO CANDIDATES ! Do not open this examination paper until instructed to do so. ! Answer one question from Section A and one question from Section B. ! Use diagrams where appropriate.
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SECTION A Answer one question from this Section. Question 1 Study the extract below and answer the questions which follow. Windows 98: Caught in a U.S. anti-monopoly battle (1) On May 18 1998 lawyers for the U.S. Justice Department filed a long-anticipated anti-monopoly (Trust) lawsuit against Microsoft, the world’s largest software company – and the computer industry may never be the same. (2) Should the U.S. government succeed, the lawsuit could significantly alter the way Microsoft develops and markets its Windows operating system, software that controls essential functions of 90% of all desktop computers sold. But the impact on ordinary computer users is likely to be slight – at least for now. (3) Predictably, Bill Gates, Microsoft’s forceful chairman, doesn’t want regulators dictating what features are integrated into his software. He called the lawsuit “a step backward for America, consumers and for the PC industry”. (4) Among other charges, government lawyers argue the company uses its monopoly on operating systems to squeeze out competition – breaking a key U.S. antitrust law. While monopolies are not necessarily illegal, they argue that it is anti-competitive for firms to use monopoly power to force their way into other businesses. Netscape, which spied a commercial opportunity in Internet browsers long before Microsoft, provides a perfect test case. U.S.
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This note was uploaded on 10/01/2009 for the course BIO 19839791 taught by Professor Ms.nerd during the Spring '09 term at International University of Sarajevo.

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