ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Clayton Act
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Federal Trade Commission Act
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Sherman Anti-trust Act
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None of the above
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Detailed explanation-1: -The Clayton Antitrust Act was enacted in 1914 to strengthen the Sherman Antitrust Act. It outlaws certain practices not prohibited by the Sherman Act and helps the government stop a monopoly before it develops.
Detailed explanation-2: -The first vigorous enforcement of the Sherman Act occurred during the administration of U.S. Pres. Theodore Roosevelt (1901–09). In 1914 Congress passed two legislative measures that provided support for the Sherman Act.
Detailed explanation-3: -The Sherman Anti-Trust Act authorized the federal government to institute proceedings against trusts in order to dissolve them. Any combination “in the form of trust or otherwise that was in restraint of trade or commerce among the several states, or with foreign nations” was declared illegal.
Detailed explanation-4: -Whereas the Sherman Act only declared monopoly illegal, the Clayton Act defined as illegal certain business practices that are conducive to the formation of monopolies or that result from them.