Question

based on what you know about the hawley - smoot tariff act, how can tariffs be harmful? choose three correct answers.
tariffs can increase the cost of imported goods for consumers.
tariffs can decrease taxes on domestic goods.
tariffs can lead to increased taxes on exported goods.
tariffs can harm the global economy.
tariffs can increase the number of imported goods.

Explanation:

1. "Tariffs can increase the cost of imported goods for consumers": Tariffs are taxes on imports, so they raise the price of imported goods, making them more expensive for consumers.
2. "Tariffs can lead to increased taxes on exported goods": Other countries may retaliate with tariffs on a nation's exports, effectively increasing taxes on those exports.
3. "Tariffs can harm the global economy": By disrupting international trade, reducing trade volumes, and causing trade wars, tariffs negatively impact the global economic system.

The other options are incorrect: "Tariffs can decrease taxes on domestic goods" is wrong (tariffs don't reduce domestic taxes); "Tariffs can increase the number of imported goods" is wrong (tariffs make imports more expensive, reducing their quantity).

Answer:

• The option with "Tariffs can increase the cost of imported goods for consumers"
• The option with "Tariffs can lead to increased taxes on exported goods"
• The option with "Tariffs can harm the global economy"