Describe the effects of the Smoot-Hawley tariff imposed by the United States in 1930
What will be an ideal response?
Had a damaging effect on employment abroad. The foreign response involved retaliatory trade restrictions and preferential trading arrangements among group of countries. This is an example of "beggar-thy-neighbor" policy, meaning a policy that benefits the home country only because it worsens economic conditions abroad.
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If the price of milk increased by 5 percent because of an increase in the demand for milk, and the quantity of milk supplied increased by 7 percent
A) the supply curve of milk has shifted rightward. B) the price elasticity of supply of milk is greater than one. C) milk is more of a luxury than a necessity. D) milk is more of a necessity than a luxury.
A balance sheet for the central bank of Pecunia is shown below: Central Bank Balance Sheet Assets Liabilities Foreign assets $1,000 Deposits held by private banks $500 Domestic assets $1,500 Currency in circulation $2,000 Please write the
new balance sheet if the bank sells $100 worth of foreign bonds for domestic currency.
The price of food relative to other goods has:
A. fallen, making it harder to live on less income because other goods cost so much. B. increased, making it easier to live on less income because other goods cost less. C. fallen, making it easier to live on less income. D. increased, making it harder to live on less income.
When goods and services are produced at the lowest possible cost, ________ occurs
A) allocative efficiency B) productive efficiency C) equity D) efficient central planning