Progressive Movement Practice Exam

What was a common critique of monopolies during the Progressive era?

1. They benefit the consumer

2. They encourage competition

3. They hinder free trade and economic fairness

4. They promote equality in wealth distribution

The correct answer is: They hinder free trade and economic fairness

During the Progressive era, a common critique of monopolies centered on the perception that they hindered free trade and economic fairness. Monopolies typically control a significant share of a particular market, which allows them to set prices and limit supply without facing competition. This concentration of power often leads to higher prices for consumers and stifles innovation, as there is less incentive for a monopoly to improve products or services when it does not face competition. The monopolistic practices could also lead to unequal economic conditions, as wealth becomes concentrated in the hands of a few powerful industries or individuals, contradicting the Progressive movement's focus on social reform and equitable access to economic opportunities. Hence, the critique focused on the negative impact monopolies had on the market dynamics that promote fairness and competition.