Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The breakup of the Northern Securities railroad trust
B
The establishment of the Federal Reserve System
C
The creation of the Social Security Administration
D
The enactment of the Civil Rights Act
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act stops a company from dominating a market by using unfair practices or exclusive agreements. When a firm is found to have used such tactics to eliminate competition, the act allows courts to order the company to change its behavior or even break it up. A classic illustration is the breakup of Standard Oil in the 1910s, where the court applied the Act to dissolve the company into separate firms. This case shows the Act’s power to regulate monopolies and protect consumers and competitors.
Detailed Explanation
The Sherman Act bans monopolies. Other options are incorrect because People may think antitrust laws created the Fed, but the Fed regulates money supply, not monopoly control; Social Security is a welfare program, not a monopoly case.
Key Concepts
Sherman Antitrust Act
Monopolies
Regulatory Practices
Topic
Sherman Antitrust Act Application
Difficulty
hard level question
Cognitive Level
understand
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