The Hawley-Smoot Tariff

question 35

Multiple Choice

The Hawley-Smoot Tariff

• A) actually lowered tariffs on foreign agricultural goods but raised them on manufactured goods.
• B) was written and presented by President Hoover himself, so that he could address just how important an issue tariffs were.
• C) raised tariffs on foreign goods an additional 25 percent to protect American manufacturers from foreign competition.
• D) raised tariffs on foreign imports and proved disastrous as nations could not repay World War I debts and retaliated with high tariffs on U.S. imports to their countries.
• E) aided economic recovery by limiting the number of European goods that could enter the U.S. and compete with U.S. manufacturers.

---

Definitions:

Retained Earnings

The share of a company's earnings that are held back and not distributed as dividends to its shareholders.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance.

Retained Earnings

The part of net profits that is not distributed as dividends but is kept by the company for reinvestment in its primary business or for debt repayment.

Dividends Declared

Profits distributed by a company to its shareholders, usually determined by the company's board of directors.