Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
To promote competition by dismantling monopolistic practices
B
To increase government revenue through business taxes
C
To support the interests of large corporations
D
To encourage foreign investments in the U.S.
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act was applied to Northern Securities because the company had formed a monopoly that restricted competition and harmed consumers. By merging the Northern Pacific, Great Northern, and Chicago, Burlington, and Quincy railroads, it controlled a large portion of rail traffic and could set high freight rates. This concentration of power was seen as a restraint of trade, violating the Act’s prohibition against monopolistic practices. The federal government sued to break up the trust and restore competitive pricing, as shown by the court’s decision to dissolve the company.
Detailed Explanation
The Sherman Antitrust Act was written to stop companies from taking too much power over markets. Other options are incorrect because Some think the Act was mainly to raise tax money, but its purpose was to protect markets, not revenue; Many believe it helped big companies, yet the law actually fights against the largest corporations when they abuse power.
Key Concepts
Antitrust Legislation
Monopolies
Regulation of Commerce
Topic
Sherman Antitrust Act Application
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1What was the primary purpose of the Sherman Antitrust Act when it was enacted?
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2
Question 2What was the primary goal of the Sherman Antitrust Act?
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3
Question 3What was a primary cause that led to the enforcement of the Sherman Antitrust Act in 1890?
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Practice
4
Question 4What was a significant underlying cause for the initial enforcement of the Sherman Antitrust Act against labor unions instead of corporations?
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Practice
5
Question 5The Sherman Antitrust Act was primarily applied to regulate __________ in order to promote fair competition and prevent monopolies.
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Practice
6
Question 6How did the Sherman Antitrust Act impact monopolies like the Northern Securities railroad trust?
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Practice
7
Question 7Sherman Antitrust Act Application : Northern Securities Trust :: Clayton Antitrust Act : ?
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Practice
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