The Smoot-Hawley Tariff Act of 1930 is notorious for which of the following reasons? Multiple Choice It spawned a global trade war. It triggered the Great Depression. It favored imports over domestic producers. It is a classic example of the dumping argument.
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One of the reasons that the Great Depression lasted as long as it did was because Select one: a. many nations erected barriers to trade. b. the US cut import tariffs causing an over-supply of goods. c. of floating exchange rates. d. of hyperinflation in Germany.
Dave K.
7. By the mid-1930's, governments all over the world entered the ____ era of international trade. Since 2017, the U.S. and other countries have moved closer to the ____ era which, in 1930, saw the passage of ____ and ____. a. Reciprocity; restriction; The Smoot-Hawley Tariff Act; The Great Depression b. Restriction; reciprocity; NAFTA; job losses in the United States. c. Revenue; restriction; Article One, Section Eight, Clause three of the Constitution; as expected, a decrease in total revenue. d. Reciprocity; restriction; the 16th amendment; World War II e. None of the above. 8. Based on what we know about the economic impact of tariffs and quotas, which of the garners some conditional support from economists? a. When concerns over human rights and the environment are used to increase tariffs. b. When a country becomes convinced that its trading partners are engaging in dumping or currency manipulation. c. When the value of the dollar fluctuates compared to foreign currency. d. When a government has decided that it needs to eliminate a balance of trade deficit with another nation. e. When, with temporary protection, an infant industry could emerge and show long-run comparative advantages over other countries. 9. Historically, many people have argued that tariffs and quotas should be used to prevent other nations from engaging in predatory pricing. For economists, this argument is largely flawed ______ because: a. Predatory pricing leads to fewer companies over time; higher prices and monopoly profits for the successful predator. b. Predatory pricing may lead to large discounts for consumers in the short run, but the elimination of job opportunities in the long run as domestic suppliers close. c. Predatory pricing has been proven to be an inefficient practice since the "predators" must be willing to incur initial losses and do not have the power to control markets indefinitely. d. Predatory pricing leads to companies with no comparative advantage being dominant in the markets they pursue.
Akash M.
Based on what we know about the economic impact of tariffs and quotas, which of the following is a historically flawed reason for a government to have restrictive trade policies? When concerns over human rights and the environment are used to increase tariffs. When a country becomes convinced that its trading partners are engaging in dumping or currency manipulation. When the value of the dollar fluctuates compared to foreign currency. When a government has decided that it needs to eliminate a balance of trade deficit with another nation. All of the above. The passage of NAFTA in 1994 led to an increase in exports between the U.S., Canada, and Mexico. As a result, total job creation in each nation increased and wages for American factory workers decreased. This is one reason why economists have not supported President Biden's recent executive order requiring government agencies to "Buy American." The post-World War II period represented the revenue era in U.S. tariff policy. This led to job creation and a healthier economy. 1930 was the year the Smoot-Hawley bill passed.
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