If Higher Tariffs, Such as Those Enacted by the Smoot-Hawley

question 93

Multiple Choice

If higher tariffs, such as those enacted by the Smoot-Hawley trade bill, reduce the imports of the United States, which of the following will be most likely to occur?

• A) U.S. employment will increase.
• B) The unemployment rate of the United States will decline.
• C) U.S. exports will increase because foreigners will want to buy more from U.S. producers.
• D) U.S. exports will decline because foreigners will be earning fewer of the dollars needed to purchase goods and services from Americans.

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Definitions:

Globalized

Referring to the process by which businesses, technologies, or cultural attributes spread worldwide, leading to increased interconnectedness and interdependence among nations.

Command Economy

An economy in which the state, rather than market forces, manages the production and distribution of goods.

Production

The process of creating goods or services using inputs like raw materials, labor, and technology, often resulting in the generation of value.

Distribution

The manner in which wealth, goods, or resources are shared or spread out across a society or among members within a community.