Which of the Following Properly Assesses the Significance of the Passage

question 46

Multiple Choice

Which of the following properly assesses the significance of the passage of the Sherman Antitrust Act in 1890?

• A) The passage of the law was a Republican triumph in an era of Democratic dominance.
• B) The law triggered an avalanche of frivolous lawsuits that would tarnish the reputation of anti-monopolists for years.
• C) The law was so finely grained and complicated that few prosecutors in the country dared to apply it.
• D) The law established a precedent that the national government could regulate the economy in the interest of the public good.

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Definitions:

Net Income

After deducting taxes and expenses from its revenues, the resultant profit of a company.

Dividends

Cash payouts from a firm to its equity holders, usually derived from the company's financial gains.

Common Stock

Shares entitling the holder to dividends that fluctuate in amount and the right to vote on the company's policy and corporate decisions.