Progressive Movement Practice Exam

The Sherman Antitrust Act aimed to achieve what core objective?

1. Promote the formation of new trusts

2. Maintain competition in business

3. Increase business investment

4. Limit the activities of foreign corporations

The correct answer is: Maintain competition in business

The Sherman Antitrust Act, enacted in 1890, was primarily aimed at maintaining competition in business. Its core objective was to prevent monopolies and anti-competitive practices that could harm consumers and stifle innovation. By outlawing any agreements or actions that restrained trade or commerce, the act sought to promote a fair and competitive marketplace. This foundational aspect of antitrust law was crucial in ensuring that no single entity could dominate a market to the detriment of consumers and other businesses. The act specifically targeted practices that led to the formation of monopolies, thereby promoting a competitive environment. This was particularly important during a period of rapid industrialization in the United States where trusts and monopolies were emerging as significant economic forces, often leading to higher prices and limited choices for consumers. By fostering competition, the Sherman Antitrust Act aimed to encourage a variety of businesses to thrive and innovate, ultimately benefiting the economy as a whole.