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Sherman Antitrust Act

The Sherman Antitrust Act was a landmark legislation in the late 19th century aimed at curbing the growth of monopolies and trusts that were stifling competition in the marketplace. It signaled a shift towards government intervention to promote fair competition and prevent the abuse of economic power by large corporations.

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1

What was the primary effect of the Sherman Antitrust Act in the marketplace during the late 19th century?

The law made it illegal for companies to form trusts that controlled too many markets. Other options are incorrect because Many think the law gave the...

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2

The Sherman Antitrust Act was primarily designed to prevent the formation of __________ that could restrict competition in the marketplace.

The Act was made to stop one company from controlling most of a market, because that company can set higher prices or block new sellers. Other options...

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3

What was the primary purpose of the Sherman Antitrust Act when it was enacted?

The law was made to stop one company from owning all the supplies for a product, so many firms can compete. Other options are incorrect because Some t...

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4

Arrange the following events related to the Sherman Antitrust Act in the correct chronological order: A) The passage of the Sherman Antitrust Act by Congress, B) The first major case prosecuted under the Act, C) The establishment of the Federal Trade Commission, D) The public outcry against monopolistic practices.

People were upset about big companies taking over markets (D). Other options are incorrect because This order says the law passed before the public wa...

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5

What was the primary goal of the Sherman Antitrust Act?

The law was created to stop one company from taking over a whole market. Other options are incorrect because Some think the act set prices, but it doe...

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6

Which of the following actions would most likely violate the Sherman Antitrust Act?

When two rival companies merge, they may control a large portion of the market. Other options are incorrect because Lowering prices to win customers i...

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7

Sherman Antitrust Act : Monopoly :: Clayton Antitrust Act : ?

The Clayton Act was created to protect competition. Other options are incorrect because Price fixing is one specific practice the Act tackles, but the...

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8

A new tech company has rapidly gained a significant market share by aggressively underpricing its competitors. As a result, several smaller companies have gone out of business. The government is considering intervening to regulate this company's practices. Based on the principles of the Sherman Antitrust Act, what should be the primary concern regarding this company's behavior?

The Sherman Act stops firms that price so low they push rivals out of the market. Other options are incorrect because People think a company can domin...

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9

Which of the following statements accurately reflect the principles and goals of the Sherman Antitrust Act? Select all that apply.

The act was created to keep markets open by stopping single companies from dominating. Other options are incorrect because A common mistake is to thin...

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