Laissez-Faire vs Regulation · US History

The Clayton Antitrust Act of 1914 strengthened the government's regulatory power by:

  1. Banning labor unions from going on strike
  2. Lowering tariffs significantly to encourage greater international business competition
  3. Abolishing the Federal Reserve System
  4. Explicitly prohibiting specific unfair business practices like price discrimination
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Correct answer: Explicitly prohibiting specific unfair business practices like price discrimination

The Clayton Act addressed loopholes in the Sherman Antitrust Act. It prohibited 'interlocking directorates' and price-fixing, and notably stated that labor unions were not 'conspiracies in restraint of trade,' protecting them from antitrust prosecution.

Difficulty: Medium Question 8 of 20

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