THE VIRGINIA DYNASTY 1801 1825
JAMES MONROES PRESIDENCY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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tariffs eliminated the import of all foreign-made goods, increasing the price of American-made goods
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tariffs increased the price of foreign-made goods, making American-made goods cheaper for people to buy
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tariffs provided money for people interested in creating or expanding factories, leading to an increase in factories in the North
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tariffs decreased both the time and cost of manufacturing for factory owners, allowing them to build more and more factories
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Detailed explanation-1: -The purpose of protective tariffs is to promote domestic industrialization by shielding local industries from foreign competitors. In addition to improving the domestic industrial setup, protective tariffs also protect the country’s currency.
Detailed explanation-2: -In general, these tariffs are intended to protect critical American industries from foreign competition or to prevent dumping of cheap goods in the U.S. by foreign manufacturers, or both.
Detailed explanation-3: -Tariffs have long been used to prop up homegrown industries by inducing citizens to buy goods produced domestically. Since the end of World War II, however, tariffs have largely fallen out of favor in developed economies because they often lead to reduced trade, higher prices for consumers, and retaliation from abroad.
Detailed explanation-4: -(Tariffs reduce competition; supply is reduced, so higher prices can be charged by the remaining firms. The higher prices lead to increased profits for a small number of people in the protected industry.