PrepTest 71, Section 2, Question 20
Adjusted for inflation, the income earned from wool sales by a certain family of Australian sheep farmers grew substantially during the period from 1840 to 1860. This is because the price for wool sold on the international market was higher than the price paid on domestic markets and the percentage and amount of its wool that this family sold internationally increased dramatically during that period. But even though the family generated more income from selling their wool, they failed to enjoy a commensurate increase in prosperity.
Adjusted for inflation, the income earned from wool sales by a certain family of Australian sheep farmers grew substantially during the period from 1840 to 1860. This is because the price for wool sold on the international market was higher than the price paid on domestic markets and the percentage and amount of its wool that this family sold internationally increased dramatically during that period. But even though the family generated more income from selling their wool, they failed to enjoy a commensurate increase in prosperity.
Adjusted for inflation, the income earned from wool sales by a certain family of Australian sheep farmers grew substantially during the period from 1840 to 1860. This is because the price for wool sold on the international market was higher than the price paid on domestic markets and the percentage and amount of its wool that this family sold internationally increased dramatically during that period. But even though the family generated more income from selling their wool, they failed to enjoy a commensurate increase in prosperity.
Adjusted for inflation, the income earned from wool sales by a certain family of Australian sheep farmers grew substantially during the period from 1840 to 1860. This is because the price for wool sold on the international market was higher than the price paid on domestic markets and the percentage and amount of its wool that this family sold internationally increased dramatically during that period. But even though the family generated more income from selling their wool, they failed to enjoy a commensurate increase in prosperity.
Which one of the following would, if true, help most to resolve the apparent paradox described above?
At the end of the 1800s, prices in general in Australia rose more rapidly than did the wholesale price of wool sold domestically.
The prices of wool sold to domestic markets by Australian sheep farmers decreased dramatically during the period in question.
The international and domestic prices for mutton, sheepskins, and certain other products produced by all Australian sheep farmers fell sharply during the period in question.
Competition in wool sales increased during the period in question, leaving Australian wool producers in a less favorable position than previously.
Among Australian sheep farmers, the percentage who made their living exclusively from international wool sales increased significantly during the period in question.
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