Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It was designed to promote competition by preventing monopolies.
B
It allows businesses to form trusts to control market prices.
C
It signifies a shift towards government intervention in the economy.
D
It only applies to businesses within the United States.
E
Its enforcement has led to the breakup of several large corporations.
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act was created to stop businesses from forming monopolies or colluding to fix prices, because such practices hurt consumers by keeping prices high and choices limited. It declares that any contract or conspiracy that restrains trade, or attempts to monopolize a market, is illegal. The law’s goal is to preserve competition, which encourages lower prices, better quality, and innovation. For example, when Standard Oil tried to control all oil production, the courts used the Act to break it up, showing how the Act protects the market for everyone.
Detailed Explanation
The act was created to keep markets open by stopping single companies from dominating. Other options are incorrect because A common mistake is to think the law lets companies form trusts that fix prices; Some people think it only covers U.S.
Key Concepts
Antitrust Legislation
Monopolies and Competition
Government Intervention in 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 goal of the Sherman Antitrust Act?
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Practice
2
Question 2Which of the following actions would most likely violate the Sherman Antitrust Act?
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3
Question 3Which scenario best illustrates the enforcement of the Sherman Antitrust Act?
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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 7Which of the following statements accurately reflect the implications and historical context of the Sherman Antitrust Act? (Select all that apply)
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Practice
8
Question 8What is the correct sequence of events in the application of the Sherman Antitrust Act starting from the identification of a monopoly to its regulation?
mediumHistory
Practice
9
Question 9Which of the following actions exemplify the application of the Sherman Antitrust Act in regulating monopolies? Select all that apply.
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Practice
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