A Level History - America - Practice Exam

The Fordney-McCumber Act was primarily aimed at what economic issue?

1. Increasing taxes on corporations

2. Restricting import prices to protect American industry

3. Encouraging foreign investments in the U.S.

4. Establishing stricter immigration laws

The correct answer is: Restricting import prices to protect American industry

The Fordney-McCumber Act, enacted in 1922, was primarily focused on protecting American industry through tariffs. By raising tariffs on imported goods, the legislation aimed to restrict the competition posed by foreign products, thus allowing domestic industries to thrive. The increased tariffs made foreign goods more expensive and less accessible to American consumers, effectively creating a shield for U.S. manufacturers. This approach was a key aspect of the broader economic strategy during the 1920s, as the government sought to bolster American economic interests following World War I. The other options do not align with the main objective of the Fordney-McCumber Act, as it was not primarily concerned with corporate taxation, foreign investments, or immigration laws. Instead, its focus on tariffs captures the essence of the U.S. government's efforts to protect and promote its own industries during that time period.