Progressive Movement Practice Exam

Which key concept did the Clayton Antitrust Act reinforce regarding business practices?

1. Promote competition

2. Facilitate monopolistic practices

3. Restrict exports

4. Encourage foreign investment

The correct answer is: Promote competition

The Clayton Antitrust Act reinforced the concept of promoting competition in business practices. Enacted in 1914 as a supplement to the Sherman Antitrust Act of 1890, the Clayton Act aimed to address specific unethical practices that hinder fair competition. It prohibited certain practices that could lead to anti-competitive behavior, such as price discrimination, exclusive dealing agreements, and mergers that significantly reduced market competition. By emphasizing the need to maintain fair competition, the Clayton Antitrust Act sought to protect consumers, businesses, and the economy from the negative impacts associated with monopolies and unfair business practices. It played a crucial role in setting a legal framework that encouraged a competitive market environment, ensuring that no single entity could dominate the market to the detriment of competitors and consumers alike.