Progressive Movement Practice Exam

What was the primary purpose of the Clayton Antitrust Act?

1. Break up city political party machines

2. Prosecute corrupt labor unions

3. End stock market speculation

4. Restore business competition

The correct answer is: Restore business competition

The primary purpose of the Clayton Antitrust Act was to restore business competition. Enacted in 1914, this legislation was designed to strengthen antitrust laws and eliminate practices that hinder free competition among businesses. It aimed to address gaps in previous antitrust legislation, such as the Sherman Antitrust Act, by prohibiting specific actions that could lead to anti-competitive behavior. The Clayton Act specifically targeted practices such as exclusive contracts, certain mergers and acquisitions, and interlocking directorates, all of which could lead to monopolistic environments that stifle competition. By creating clearer definitions of anti-competitive practices and providing more substantial legal protections for labor unions and agricultural cooperatives, the Act sought to ensure that competition in the marketplace could flourish, benefiting consumers and the economy as a whole. In this context, it becomes clear that the other options do not align with the Act's primary objective. Breaking up city political party machines and prosecuting corrupt labor unions, while important issues in their own right, were not central goals of the Clayton Antitrust Act. Ending stock market speculation also did not relate directly to the Act's aims, which were focused specifically on business practices and competition rather than financial market regulation.