Chapter 7, section 3 questions What was the antitrust legislation of the late 1800s trying to restrict? monopolies, combinations, and trusts

2. What was the purpose of the Sherman Antitrust Act? restraints and monopolies that hindered competition

3. What was the purpose of the Clayton Antitrust Act of 1914? to give government greater power against monopolies, especially regarding price discrimination

4. Under what conditions are monopolies acceptable? in the case of a natural monopoly that can take advantage of lower production costs and is government regulated

5. What is one example of how local or state government allows and regulates a monopoly? A public commission or other government agency usually approves prices.

6. What is the purpose of public disclosure? to reveal information to the public

7. What is the advantage to the public of truth-in-advertising laws? Companies cannot make false claims about their products.

8. What kind of information regarding business and government is available on the Internet? extensive information about business activities, product reviews, and virtually every government document and report

9. What actions led to a modification of free enterprise? the passage of laws to prevent monopolies and protect the rights of workers; food and drug laws; strict government regulations of some industries

10.What characteristics make the United States economy a “mixed free enterprise” system? the mixture of different market structures, different kinds of business organizations, and varying degrees of government regulation