Progressive Movement Practice Exam

What problem did both the Sherman Antitrust Act and the Clayton Antitrust Act aim to address?

1. Companies refusing to hire minority workers

2. Businesses choosing to hire illegal immigrants

3. Unsafe working conditions in factories

4. Business combinations limiting competition

The correct answer is: Business combinations limiting competition

The Sherman Antitrust Act and the Clayton Antitrust Act were both designed to tackle the issue of business practices that inhibit competition in the marketplace. The Sherman Antitrust Act, enacted in 1890, primarily aimed to prevent monopolistic practices and to promote fair competition. It made illegal any agreements or conspiracies that restrained trade or commerce, effectively laying the groundwork for antitrust law in the United States. The Clayton Antitrust Act, passed in 1914, built upon the Sherman Act by addressing specific practices that were not clearly covered earlier. This act prohibited certain actions that could lead to anticompetitive behavior, such as price discrimination, exclusive dealing agreements, and mergers and acquisitions that could substantially lessen competition or create a monopoly. Both acts collectively sought to ensure a competitive market, preventing any single company or group of companies from dominating the market to the detriment of consumers and other businesses. Therefore, the shared focus of these two pieces of legislation was on curtailing business combinations that limited competition, making the correct answer the one that highlights this fundamental goal.