SAT Subject US History Practice Question 984: Answer and Explanation

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Question: 984

65. The Interstate Commerce Act of 1887 and the National Industrial Recovery Act of 1933 are similar in that they both

A. were struck down by the Supreme Court.
B. put into practice the theory of laissez-faire.
C. were aimed at limiting the power of the railroad companies.
D. extended the power of government into the regulation of business.
E. recognized the right of workers to form unions.

Correct Answer: D


Both acts created regulatory bodies that oversaw business activities. The Interstate Commerce Commission regulated railroad rates, while the National Recovery Administration set codes for wages, hours, and production for major businesses during the Great Depression. The Supreme Court struck down the National Industrial Recovery Act (NIRA) in 1935 (A) but never heard a case challenging the Interstate Commerce Act (ICA). These acts reflected a move away from traditional laissez-faire policies (B). The NIRA was not designed to limit the power of the railroad companies (C). Section 7A of NIRA encouraged workers to join unions (E) so that they would be better able to protect their interests, while the ICA did not mention union membership.

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