📚 Learning Guide
Sherman Antitrust Act Enforcement
easy

What was a primary cause that led to the enforcement of the Sherman Antitrust Act in 1890?

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Choose the Best Answer

A

Public outcry against monopolistic practices by railroads

B

The desire to increase government revenue through fines

C

A push for increased tariffs on imported goods

D

Pressure from foreign governments to regulate American businesses

Understanding the Answer

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Answer

The main reason the Sherman Antitrust Act was enforced in 1890 was the growing power of large trusts that hurt competition and consumers. These trusts, such as Standard Oil, controlled entire industries and could fix prices or shut out rivals, making it hard for small businesses to survive. When people saw that a few companies were setting prices and buying out competitors, they demanded that the government step in to restore fair play. For example, Standard Oil used its monopoly to drive smaller oil producers out of business, prompting lawmakers to create the law that would break up such monopolies. The Act was thus enforced to protect the market and the public from these unfair practices.

Detailed Explanation

People were upset that railroads charged too much and stopped new lines, hurting farmers and towns. Other options are incorrect because Some think the act was written to raise money for the Treasury; Some believe the act was about raising import duties.

Key Concepts

Antitrust laws
Monopolies
Regulatory measures
Topic

Sherman Antitrust Act Enforcement

Difficulty

easy level question

Cognitive Level

understand

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