The Smoot-Hawley Tariff

question 51

Multiple Choice

The Smoot-Hawley Tariff

• A)lowered U.S.tariffs by 50 percent following World War II.
• B)was passed by the U.S.Congress following the Civil War as a means of increasing government revenue.
• C)was passed by the U.S.Congress upon a recommendation made by the General Agreement on Tariffs and Trade (GATT)in 1948.
• D)raised average tariff rates by over 50 percent in the United States in 1930.

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Definitions:

Retail Inventory Method

An accounting method used by retailers to estimate inventory value by converting the retail price of inventory to a cost basis using a cost-to-retail percentage.

Gross Profit Method

A method used in accounting to estimate the value of a company's inventory by applying the gross margin ratio to net sales.

Inventory

Consists of the goods and materials a business holds for the purpose of resale or production.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue. It is often referred to as the bottom line.