Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
To promote fair competition by preventing monopolies
B
To regulate prices of goods and services
C
To provide financial support to struggling businesses
D
To create government-owned enterprises
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act was created to stop businesses from forming monopolies that hurt competition and consumers. Its main goal is to keep markets open and fair by making it illegal for companies to conspire to fix prices, divide markets, or otherwise limit trade. By breaking up or preventing such agreements, the law aims to let prices stay low and choices wide. For example, if a group of grocery chains tried to agree that no one would sell a certain brand of cereal, the Act would stop that and let other sellers offer the cereal at competitive prices. This keeps the market healthy for everyone.
Detailed Explanation
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 does not; The act is not a bank that gives money to businesses.
Key Concepts
Antitrust legislation
Market competition
Monopolies
Topic
Sherman Antitrust Act
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1The Sherman Antitrust Act was primarily designed to prevent the formation of __________ that could restrict competition in the marketplace.
easyHistory
Practice
2
Question 2What was the primary purpose of the Sherman Antitrust Act when it was enacted?
mediumHistory
Practice
3
Question 3Which of the following statements accurately reflect the principles and goals of the Sherman Antitrust Act? Select all that apply.
easyHistory
Practice
4
Question 4What was a primary cause that led to the enforcement of the Sherman Antitrust Act in 1890?
easyHistory
Practice
5
Question 5What was a key initial focus of the Sherman Antitrust Act when it was enacted in 1890?
easyHistory
Practice
6
Question 6The Sherman Antitrust Act, enacted in 1890, was primarily aimed at preventing __________ that interfered with interstate trade.
hardHistory
Practice
7
Question 7What was the primary intent of the Sherman Antitrust Act when it was first enacted?
easyHistory
Practice
8
Question 8The Sherman Antitrust Act was primarily applied to regulate __________ in order to promote fair competition and prevent monopolies.
easyHistory
Practice
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.