Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The Sherman Antitrust Act was primarily aimed at breaking up monopolies in big business.
B
Initially, the Act was used more frequently against labor unions than against corporations.
C
The Act was enacted to promote competition and protect small businesses exclusively.
D
The enforcement of the Sherman Antitrust Act has evolved with changes in political and economic priorities.
E
The Act was a response to public outcry against labor strikes in the late 1800s.
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act of 1890 was the first federal law to prohibit monopolistic practices, aiming to keep markets competitive and protect consumers from high prices and limited choices. It targeted not just individuals but entire corporations, allowing the government to break up companies like Standard Oil that held too much market power. The Act’s enforcement grew over time, shaping modern antitrust policy and influencing later laws such as the Clayton Act. Its historical significance lies in establishing the federal government’s role in regulating business behavior to preserve free trade and prevent abuse of market dominance. A concrete example is the 1911 breakup of Standard Oil into 34 smaller firms, which dramatically increased competition in the oil industry.
Detailed Explanation
The early courts used the Act mostly against labor unions because the government feared big labor movements. Other options are incorrect because Many think the law was made only to stop large companies, but early cases were against union organizers; Some say the Act only protects small businesses, but its goal is fairness for everyone.
Key Concepts
Sherman Antitrust Act
Labor Unions
Economic Policy
Topic
Sherman Antitrust Act History
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1What was the primary effect of the Sherman Antitrust Act in the marketplace during the late 19th century?
easyHistory
Practice
2
Question 2Which of the following statements accurately reflect the principles and goals of the Sherman Antitrust Act? Select all that apply.
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Practice
3
Question 3Which scenario best illustrates the enforcement of the Sherman Antitrust Act?
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Practice
4
Question 4Which of the following scenarios best exemplifies a violation of the Sherman Antitrust Act?
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Practice
5
Question 5Which of the following actions are typically considered as enforcement measures under the Sherman Antitrust Act? (Select all that apply)
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Practice
6
Question 6Which of the following scenarios best exemplifies the application of the Sherman Antitrust Act in its historical context?
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Practice
7
Question 7What is the correct sequence of events in the application of the Sherman Antitrust Act starting from the identification of a monopoly to its regulation?
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Practice
8
Question 8Which of the following cases best exemplifies the application of the Sherman Antitrust Act in the context of regulating monopolies, and why?
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Practice
9
Question 9Which of the following actions exemplify the application of the Sherman Antitrust Act in regulating monopolies? Select all that apply.
hardHistory
Practice
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