Question

directions circle the letter of the answer that correctly completes each sentence.

1. a few giant companies that control important industries are called —.

a majorities
b trusts
c oligopolies
d reformers

1. huge monopolies could charge high prices to increase their —.

a customer services
b mergers
c profits
d competition

1. the power of the monopolies made some — want to change the laws to make things better.

a reformers
b business owners
c boards of directors
d companies

1. some people believed that the government should protect and encourage — instead of monopolies.

a competition
b price discrimination
c trusts
d big business

1. by the 1880s, the members of congress who wanted to control the trust companies were a —.

a minority
b majority
c small group
d trust

1. the interstate commerce commission (icc) was formed to regulate the — industry.

a coal
b steel
c oil
d railroad

1. the sherman antitrust act made it illegal for large companies to form —.

a monopolies
b private businesses
c reforms
d oligopolies

1. the clayton act of 1914 — certain unfair business practices.

a encouraged
b banned
c increased
d created

1. — is the practice of selling different buyers the same product for different prices.

a price - fixing
b merger
c competition
d price discrimination

1. when one business buys another it is called a(n) —.

a joint ownership
b agreement
c merger
d price war

Explanation:

1. Oligopolies are a few large firms controlling an industry.
2. Monopolies charge high prices to increase profits.
3. Reformers wanted to change laws due to monopoly power.
4. Competition is protected instead of monopolies.
5. By 1880s, those wanting to control trusts were a minority.
6. ICC was formed to regulate railroad industry.
7. Sherman Antitrust Act made monopolies illegal.
8. Clayton Act of 1914 banned unfair business practices.
9. Price discrimination is selling same product at different prices.
10. When one business buys another, it's a merger.

Answer:

1. C. oligopolies
2. C. profits
3. A. reformers
4. A. competition
5. A. minority
6. D. railroad
7. A. monopolies
8. B. banned
9. D. Price discrimination
10. C. merger