Why Are Laws Aimed at Regulating Monopolies Called "Antitrust" Laws

question 34

Multiple Choice

Why are laws aimed at regulating monopolies called "antitrust" laws?

• A) The rise of large firms (e.g., Standard Oil) in the late 1800s in the United States caused consumers to lose trust in private business.
• B) "Trust" was a word in Old English that meant monopoly in the Middle Ages. Therefore, "antitrust" is a term that means "against monopoly."
• C) In the late 1800s, firms in several industries formed trusts; the firms were independent but gave voting control to a board of trustees. Antitrust laws were passed to regulate these trusts.
• D) In the late 1800s, firms in several industries formed trusts; they were called "trusts" because when corporate officials were questioned about their business they would clam that business was good for the country and that they should trusted.

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Definitions:

Influence

The ability to influence the personality, growth, or actions of an individual or entity.

Two-Stage Attribution Model

A psychological theory that describes how individuals infer the causes of their own or others' behavior in two steps: first identifying the behavior, then attributing it to internal or external causes.

Manager

An individual responsible for controlling or administering an organization or group of staff.

Poor Performance

The failure to meet established standards, expectations, or objectives in work or other activities.