What is the most likely reason that nations raised tariffs on imports during the Great Depression?

• A. To decrease government revenue from import taxes
• B. To protect domestic industries from foreign competition and reduce unemployment
• C. To lower the prices of imported goods for consumers
• D. To encourage international trade and economic cooperation

Answer: (B)

Verified step by step guidance

1. Understand the historical context: During the Great Depression, many countries faced severe economic downturns, high unemployment, and declining industrial output.
2. Recall the purpose of tariffs: Tariffs are taxes imposed on imported goods, which generally make these goods more expensive compared to domestic products.
3. Analyze the economic motivation: By raising tariffs, governments aimed to make imported goods less competitive, encouraging consumers to buy domestically produced goods instead.
4. Connect tariffs to employment: Protecting domestic industries from foreign competition was intended to help maintain or increase employment levels within the country by supporting local businesses.
5. Conclude the reasoning: Therefore, the most likely reason for raising tariffs during the Great Depression was to protect domestic industries and reduce unemployment, rather than to decrease government revenue, lower prices, or encourage trade.