Which agency, established in 1887, regulated the economics and services of carriers engaged in interstate commerce?

• A. Federal Trade Commission
• B. Interstate Commerce Commission
• C. National Labor Relations Board
• D. Civil Aeronautics Board

Answer: (B)

The key idea is federal regulation of transportation economics in the interstate market. The agency created in 1887 to oversee this was the Interstate Commerce Commission, established by the Interstate Commerce Act of 1887. Its job was to regulate the economics and services of carriers moving goods across state lines—primarily railroads at first—by setting and reviewing rates, preventing discriminatory practices, and ensuring fair treatment in shipping. This marked the first time the federal government actively supervised the pricing and operations of interstate transportation.

The other agencies listed fit different times or functions: the Federal Trade Commission began in 1914 to enforce broad antitrust and consumer protections, not specifically to regulate interstate transportation; the National Labor Relations Board was created in 1935 to oversee labor relations; and the Civil Aeronautics Board was established in 1938 to regulate civil aviation.