ParadoxDiff: Hardest

Logic Breakdown

Passage Summary: A sheep-farming family made a lot more money selling wool abroad where prices were high, but they didn't actually end up any better off.

Reasoning: A family of farmers saw their inflation-adjusted wool income grow due to high international prices and increased export volume, yet their overall prosperity did not increase accordingly.

Analysis: The paradox here is the disconnect between rising revenue and stagnant prosperity. To resolve this, we need a factor that explains where that extra money went or what other losses the family suffered. Perhaps the costs of shipping wool internationally were so high they ate up the profits, or maybe the family's other crops failed miserably during the same period. Look for an answer that introduces a 'counter-balancing' cost or loss that explains why more income didn't lead to a better life.

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20.

Which one of the following would, if true, help most to resolve the apparent paradox described above?

Correct Answer
C
Falling prices for other products (mutton, sheepskins, etc.) would offset the increased wool income, explaining why prosperity did not rise proportionally.
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