Chapter 77, Problem 1MCQ

To determine

The correct option for the Sherman Antitrust Act of 1890.

Answer to Problem 1MCQ

From the available options, the correct option is all of the above.

Explanation of Solution

As the Sherman Anti-Trust Act of 1890 covers the break up of existing monopolies, prevention of new monopolies, restriction on monopoly behavior that is engaged in by trusts, and response to the increasing power of trusts in the economy, therefore, all options are correct. To dissolve trusts this act authorized the federal government to break up existing monopolies and prevent the new creation of monopolies when the economy of the country requires to do so. This authorization further also protects the monopoly behavior of the trust by restraint to trade or commerce between certain states.

Moreover, this act responds to the increasing power of trusts in the economy by declaring trade illegal between states when there is a restraint to commerce by the government and addressing the oppressive monopolies.

Here, the correct option is e (all of the above)

Economics Concept Introduction

Introduction: According to the Sherman Anti-Trust Act of 1890, the federal government has the right to proceed against trusts to dissolve them such as declaring the trusts illegal when they are in restraint of trade or commerce among states or foreign nations.