Multiple choice

Directions: The question is a logical sequence of statements with a missing link, the location of which is shown parenthetically. From the five choices available you are required to choose the one which best fits the sequence logically.

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 come out with legislation that prevents the formation of trusts.

  2. The Federal Trade Commission (FTC) has taken upon itself 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 to check oligopolistic tendencies.

  5. The government initiative in this regard did a lot to make the competition fair and equitable.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The passage is about antitrust laws. 'This forbade' requires an antecedent (an act or law) that forbade. Option (3) talks about the same and is appropriate antecedent for the word 'this' mentioned in the last line. 

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