Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It reduced government intervention and allowed monopolies to thrive.
B
It promoted competition by curbing monopolistic practices.
C
It increased the number of trusts and monopolies in the economy.
D
It had no significant impact on market competition.
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act was passed to stop companies from forming monopolies that hurt competition. It made it illegal for firms to combine or fix prices to control the market. The law forced big companies to break up or change their practices, which let more businesses compete. For example, a railroad company that tried to charge all customers the same high price was forced to lower prices or split into smaller lines. Overall, the Act opened the market, made prices fairer, and encouraged new businesses to enter.
Detailed Explanation
The law made it illegal for companies to form trusts that controlled too many markets. Other options are incorrect because Many think the law gave the government less power, but it actually gave the government the power to break up big companies; The law was aimed at reducing trusts, not making them bigger.
Key Concepts
Antitrust legislation
Monopoly and competition
Government intervention in the economy
Topic
Sherman Antitrust Act
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1What was the primary purpose of the Sherman Antitrust Act when it was enacted?
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2
Question 2What was the primary goal of the Sherman Antitrust Act?
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3
Question 3What was a primary cause that led to the enforcement of the Sherman Antitrust Act in 1890?
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4
Question 4How does the Sherman Antitrust Act Enforcement directly influence market competition?
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5
Question 5Which of the following scenarios best exemplifies the application of the Sherman Antitrust Act in its historical context?
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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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7
Question 7What was the primary intent of the Sherman Antitrust Act when it was first enacted?
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Practice
8
Question 8Which of the following statements accurately reflect the implications and historical context of the Sherman Antitrust Act? (Select all that apply)
mediumHistory
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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