The Federal Trade Commission was established to address what key issue?

• A. Market competition
• B. Labor relations
• C. Environmental protection
• D. Social welfare

Answer: (A)

The Federal Trade Commission (FTC) was established primarily to promote market competition and prevent anticompetitive business practices. Formed in 1914, the FTC’s main goal is to protect consumers by ensuring that businesses operate fairly and do not engage in deceptive practices or unfair competition. It monitors and regulates business activities, investigates complaints, and enforces rules designed to maintain healthy competition in various markets.

Market competition is vital for a healthy economy, as it encourages innovation, lowers prices, and improves product quality. The FTC's role has been instrumental in addressing monopolies, price-fixing, and various forms of collusion that can harm consumers and the economy as a whole.

While labor relations, environmental protection, and social welfare are important areas in U.S. governance and policy, they are not the central focus of the FTC’s mandate. The agency is specifically oriented towards issues related to trade and competition, making market competition the accurate answer.