The Consolidation of Big Business and the Government Response

What are pooling agreements?

• Formal contracts to merge companies

• Informal agreements to fix prices or divide markets

• Legal documents for company acquisition

• Strategies to increase production

What was the purpose of trusts in business consolidations?

• To increase competition

• To manage companies as a single enterprise

• To reduce production costs

• To improve product quality

What was a danger of monopoly mentioned in the text?

• Increased innovation

• Less incentive to improve products

• Lower prices for consumers

• More competition

What was the main ruling in Wabash v. Illinois (1886)?

• States could regulate railroads running through several states.

• Only Congress could regulate interstate commerce.

• Railroads could pool agreements.

• States could give rebates to railroads.

What was a major weakness of the Sherman Antitrust Act?

• It was too specific.

• It was extremely vague.

• It was too strict.

• It was only applicable to foreign trade.

What was the effect of the U.S. v. E.C. Knight Company decision on the Sherman Antitrust Act?

• It strengthened the act.

• It greatly weakened the act.

• It had no effect on the act.

• It made the act more specific.

What did the Interstate Commerce Act establish to enforce the act?

• A special regulatory commission.

• A new court system.

• A federal police force.

• A state-level agency.

What was the main focus of the Sherman Antitrust Act?

• To regulate labor unions.

• To control interstate trade.

• To support big businesses.

• To promote foreign trade.

What was the impact of the Sherman Antitrust Act on labor unions in the 1890s?

• It was used against labor unions.

• It supported labor unions.

• It had no impact on labor unions.

• It dissolved labor unions.

What was one way business leaders used government support?

• To promote environmental policies

• To break up unions and prevent strikes

• To fund educational programs

• To support small businesses