Which law did the government pass in order to encourage competition in the economy?
the federal anti-monopoly act
the sherman antitrust act
the contraction act
the civil rights act

ANSWER:

The Sherman Antitrust Act was passed by the government to encourage competition in the economy.

EXPLANATION:

This act was passed in 1890 almost unanimously and focused on the existence of fair competition and trade practices in an economy. The Act restrains the abuse of monopoly in an economy. The Act also regulated trade practices to ensure that an economy thrives on competition which is healthy and benefiting for the economy. The Act also encouraged the formation of a "free market economy".