Texes Social Studies Content Practice Exam

What was the primary purpose of antitrust laws such as the Sherman Antitrust Act?

1. Regulate the power of big business

2. Limit low priced imported goods

3. Encourage more immigration

4. Provide safer consumer products

The correct answer is: Regulate the power of big business

The primary purpose of antitrust laws, particularly the Sherman Antitrust Act of 1890, was to regulate the power of big business. These laws were established to promote fair competition and to prevent monopolies and practices that stifle competition, which can lead to higher prices and reduced options for consumers. By prohibiting contracts, combinations, or conspiracies in restraint of trade, the Sherman Act aimed to protect the competitive marketplace, ensuring that no single entity could dominate the market to the detriment of economic fairness and consumer welfare. The focus on regulating the power of big businesses was rooted in concerns about how monopolistic practices could harm the economy and consumers by controlling prices and limiting access to goods and services. As such, the Sherman Act and subsequent antitrust legislation laid the groundwork for ongoing efforts to maintain competitive markets in various sectors of the economy.