Multiple choice

Directions: The following question contains a paragraph with a sentence or phrase missing, indicated parenthetically. From the alternatives, select the sentence or phrase that best provides the missing link.

Antitrust laws are intended to maintain competition among business firms. A 'trust' consists of two or more companies that collude in order to control the supply or price of a product or service. (______). This forbade any business combination or practice that interfered with free competition or promoted monopoly.

  1. Most states have laws that prevent the formation of trusts.

  2. The Federal Trade Commission (FTC) has the authority to break up price-fixing arrangements between companies.

  3. The first antitrust legislation in the United States was the Sherman Antitrust Act of 1890.

  4. In the 1970s, the shortage of petroleum products led to some government regulation of the distribution and sale of gasoline.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

(1) and (2) are contradictory to the statement, (4) is not related to the statement. Hence (3).

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