QUESTION TEXT: Adjusted for inflation, the income earned from…
QUESTION TYPE: Paradox
PARADOX: The family earned more from wool, but didn’t get richer overall.
The family earned more from wool because they sold much more internationally, and international prices rose.
ANALYSIS: Several answers talk about low domestic wool prices. Who cares?! The family was selling dramatically more wool internationally. Besides, the first sentence literally says that the family earned more money from wool. A lot more money! There’s no doubt about this.
So the family is poorer, even though they’re raking in cash from wool. Use your common sense (you’re allowed). If you sell wool, you have sheep. We use sheep for many things: meat, sheep’s milk, cheese, etc. So it’s quite likely that the family made money from these as well. Answer C says that the family lost money on non-wool sales.
- This answer would have been right if it said that prices in general rose faster than international wool prices.” The family’s additional earnings were coming from international sales, so that’s the price that matters.
- This sounds tempting. But this family sold a lot more wool abroad, at higher prices. And the first sentence says that the family earned more from wool sales. There’s zero doubt on that point.
- CORRECT. This is the only answer that explains how wool sellers could lose money, even if they are making more money from wool. Maybe this family only made 30% of its money from wool, and the rest from sheepskin and mutton sales.
- This talks about Australian wool producers in general. But the question is only about a specific family. This family is earning lots more from international wool sales. Presumably they’re doing well even with the increased competition.
- This answer doesn’t explain why a wool farmer could lose money even though wool sales are increasing. Don’t focus on whether an answer could be true – you need to pay attention to whether it explains the paradox.
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