Although the monopoly is one of the four major market structures that theoretically exists in a free market capitalist system, the reality is there are very few true monopolies in the economy. This is the result of many federal laws and regulations that have been passed to limit the creation and power of monopolies.
Which one of the following federal laws was passed to prevent the creation of monopolies in the economy?
A) Sherman Act of 1890
B) Securities Act of 1933
C) Sarbanes-Oxley Act of 2002
D) Wheeler-Lea Act of 1938
E) Lanham Act of 1946

Question

Quizplus · Accepted Answer

The Sherman Antitrust Act of 1890 was passed to prevent the formation and abuse of monopolies. It prohibits contracts, combinations, or conspiracies in restraint of trade and also prohibits monopolization and attempted monopolization of markets.

Although the Monopoly Is One of the Four Major Market