5.4 Early Attempts at Business Regulation: 1865-1900

What economic policy did the federal government follow during Industrialization?

• Socialism

• Laissez-faire

• Communism

• Protectionism

The Interstate Commerce Act allows the federal government to regulate ______ trade, but its powers are limited.

• international

• interstate

• local

• intrastate

What was the main purpose of the Sherman Antitrust Act of 1890?

• To promote international trade

• To dissolve trusts and monopolies

• To support large corporations

• To regulate labor unions

In the case of EC Knight v. US (1895), what was the legal decision regarding the Sugar Trust?

• Yes, it was a monopoly

• No, it was not a monopoly

• Yes, it violated the Sherman Antitrust Act,

• No, it did not violate the Sherman Antitrust Act, it was involved in manufacturing, not direct trade

The Northern Securities v. US (1904) case was significant because it was the first instance of a monopoly being _______ in American history.

• legalized

• broken up

• ignored

• supported

What was the primary purpose of the Sherman Antitrust Act?

• To allow labor unions to bargain collectively

• To nationalize large businesses that hurt consumers

• To regulate business practices that attempted to eliminate competition

• To restrict trade with foreign nations.

The Sherman Antitrust Act was criticized for its _________.

• vague wording

• high fines

• denial of trial rights

• exemption of lobbying companies