Which of the Following Best Illustrates the Value of Chinese

question 22

Multiple Choice

Which of the following best illustrates the value of Chinese silk?

• A) It was limited by law to use in clothing for elites.
• B) It was a luxury commodity because it was too fragile for use by those who undertook physical labor.
• C) It was made from the fibers of hemp plants.
• D) It was used as payment in China's diplomatic and military activities.

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Definitions:

Short Run

A period of time during which at least one input, like equipment or labor, is fixed while others can be varied to change output levels.

Automatic Market Adjustments

The self-regulating behavior of markets where prices and quantities adjust to changes in demand and supply conditions without external intervention.

Purely Competitive Firm

A market structure where firms are price takers and sell homogeneous products with many buyers and sellers, leading to perfect competition.

Economic Profit

The contrast between a company's overall receipts and its full charges, considering both palpable and inferred costs.