Which of the Following Is True of the Underwood Tariff

question 13

Multiple Choice

Which of the following is true of the Underwood Tariff?

• A) By allowing an independent commission to determine tariff rates, it removed the tariff issue from politics.
• B) By raising tariff rates to record levels, it prevented American industry from being destroyed by inexpensive foreign imports.
• C) By reducing or eliminating tariff rates, it encouraged imports of cheaper foreign materials and manufactured goods.
• D) By eliminating all tariffs, it indicated that America would join with the other industrialized nations in accepting the principle of free trade.

---

Definitions:

Annual Holding Cost

The total expenses associated with storing unsold goods or materials for a year, including warehousing, insurance, depreciation, and obsolescence costs.

UPS

United Parcel Service, a global parcel delivery and supply chain management company.

Cross Dock Distribution Center

A logistics strategy where incoming shipments are unloaded, sorted, and directly loaded onto outbound trucks, minimizing storage time.

Milk Runs

A logistics term for a round trip that facilitates either distribution or collection, aiming to maximize efficiency and reduce transportation costs.