Progressive Movement Practice Exam

Which legislation aimed to break up industrial monopolies and restore competition?

1. Sherman Antitrust Act

2. Kendall Act

3. Federal Trade Commission Act

4. Clayton Antitrust Act

The correct answer is: Sherman Antitrust Act

The Sherman Antitrust Act, enacted in 1890, was designed specifically to combat the growing power of monopolies and trusts that were seen as stifling competition and harming consumers. This legislation made it illegal to restrain trade or commerce through monopolistic practices. It represented a foundational effort by the federal government to promote a free market and prevent entities from achieving and maintaining dominance over industries to the detriment of competition and consumer choice. The legislation provided the federal government with a tool to pursue companies that engaged in anti-competitive behaviors, such as price fixing or market allocation, aiming to restore competition in various sectors of the economy. The significance of the Sherman Antitrust Act cannot be overstated, as it set the stage for subsequent antitrust laws, including the Clayton Antitrust Act and the Federal Trade Commission Act, which built upon its principles and provided more specific regulations against monopolistic practices. In this context, other options, while relevant to antitrust enforcement, do not specifically focus as directly on the original aim of breaking up monopolies. The Kendall Act does not exist in the context of antitrust laws, and although the Clayton Antitrust Act and the Federal Trade Commission Act also play roles in regulating business practices and reducing monopolistic control, they were