Which two laws specifically prohibit monopolies or other actions that restrain trade in the United States?

• A. Sherman Antitrust Act and Clayton Act
• B. Federal Reserve Act and Glass-Steagall Act
• C. Taft-Hartley Act and Wagner Act
• D. Sarbanes-Oxley Act and Dodd-Frank Act

Answer: (A)

Verified step by step guidance

1. Understand that the question is about U.S. laws designed to regulate monopolies and prevent actions that restrain trade, which are key concerns in Microeconomics related to market competition and antitrust policy.
2. Recall that the Sherman Antitrust Act, passed in 1890, was the first federal statute to limit monopolies and prohibit business practices that restrain trade, such as price fixing and collusion.
3. Recognize that the Clayton Act, passed in 1914, supplements the Sherman Act by addressing specific practices like price discrimination, exclusive dealing contracts, and mergers that may reduce competition.
4. Identify that other laws mentioned, such as the Federal Reserve Act, Glass-Steagall Act, Taft-Hartley Act, Wagner Act, Sarbanes-Oxley Act, and Dodd-Frank Act, focus on different areas like banking regulation, labor relations, or financial reforms, not directly on antitrust or monopolies.
5. Conclude that the two laws specifically prohibiting monopolies and restraining trade are the Sherman Antitrust Act and the Clayton Act.