Progressive Movement Practice Exam

What was the goal of the Sherman Antitrust Act and the Clayton Antitrust Act?

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 goal of both the Sherman Antitrust Act and the Clayton Antitrust Act was to maintain competition in business. These acts were pivotal in the Progressive Era's effort to regulate monopolistic practices and curb corporate power that was seen as harmful to the competitive market structure. The Sherman Antitrust Act, enacted in 1890, aimed to outlaw monopolistic agreements and practices that restrained trade or commerce among the states. By making such actions illegal, it sought to promote fair competition and prevent the concentration of market power in the hands of a few corporations. Following this, the Clayton Antitrust Act, passed in 1914, built upon the Sherman Act by providing more specific prohibitions against various anti-competitive behaviors, such as price discrimination and exclusive dealing contracts. It also enhanced the government's ability to enforce antitrust laws, thereby bolstering the commitment to maintaining competitive markets. Together, these acts constituted a legislative framework designed to preserve competition, ensuring that smaller businesses and new entrants had the opportunity to thrive in the economy, which was perceived as vital for innovation and consumer choice.