Which of the Following Resulted from the Smoot-Hawley Trade Bill

question 198

Multiple Choice

Which of the following resulted from the Smoot-Hawley trade bill of 1930?

• A) The stock market began a steady recovery from the crash of October 1929.
• B) Many countries responded by imposing higher tariffs on American products, and the volume of international trade fell sharply.
• C) Imports decreased, while exports increased, resulting in an overall increase in GDP and tariff revenues.
• D) The unemployment rate, which had been rising, began to steadily decline as jobs were protected by the trade restrictions.

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Definitions:

Marginal Tax Rates

The rate of tax applied to the next dollar of taxable income, which increases as income rises within progressive tax systems.

Dual-Earner Families

Dual-earner families are those where both partners in a household engage in paid employment.

Earnings Differential

The difference in wages or income between two groups due to various factors such as education, experience, or gender.

Marginal Productivity

The additional output that results from using one more unit of a factor of production, holding other factors constant.