Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
To promote competition by prohibiting monopolies
B
To limit government intervention in the economy
C
To regulate prices of goods and services
D
To provide subsidies to small businesses
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act was created to stop businesses from using unfair tactics to dominate markets and keep prices high. It made it illegal for companies to collude, merge into monopolies, or fix prices. By breaking up monopolies, the law aimed to keep competition healthy and protect consumers from inflated costs. A famous example is the breakup of Standard Oil in the 1890s, which was split into many smaller firms to restore competition. The result was a more level playing field where new entrants could compete and prices stayed reasonable.
Detailed Explanation
The law was made to stop one company from owning all the supplies for a product, so many firms can compete. Other options are incorrect because Some think it reduced the government's role, but actually the Act gave the government power to break up big companies; The Act does not set prices directly.
Key Concepts
Monopolies
Government intervention in economy
Market competition
Topic
Sherman Antitrust Act
Difficulty
medium 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 goal of the Sherman Antitrust Act?
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Practice
3
Question 3Which of the following statements accurately reflect the principles and goals of the Sherman Antitrust Act? Select all that apply.
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Practice
4
Question 4The Sherman Antitrust Act was primarily enacted to prevent __________ and promote fair competition in the marketplace.
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Practice
5
Question 5What was a primary cause that led to the enforcement of the Sherman Antitrust Act in 1890?
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6
Question 6What was a key initial focus of the Sherman Antitrust Act when it was enacted in 1890?
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Practice
7
Question 7The Sherman Antitrust Act, enacted in 1890, was primarily aimed at preventing __________ that interfered with interstate trade.
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Practice
8
Question 8What was the primary intent of the Sherman Antitrust Act when it was first enacted?
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Practice
9
Question 9The Sherman Antitrust Act was primarily applied to regulate __________ in order to promote fair competition and prevent monopolies.
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Practice
10
Question 10Which 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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