William Gregg Owned a Mill in South Carolina

question 141

Multiple Choice

William Gregg owned a mill in South Carolina.In December 1862,he placed a notice in the Edgehill Advertiser announcing his willingness to exchange cloth for food and other items.Here is an extract: 1 yard of cloth for 1 pound of bacon
2 yards of cloth for 1 pound of butter
4 yards of cloth for 1 pound of wool
8 yards of cloth for 1 bushel of salt
If the money price of bacon was 20¢ a pound and the money price of salt was $2.00 a bushel,people would

• A)buy bacon and trade it for cloth because they could buy 8 yards of cloth for only $1.60,and use that cloth to obtain a bushel of salt.
• B)not buy bacon and trade it for cloth because they would have to buy 8 yards of cloth for $1.60 and then give Mr.Gregg an extra $0.40 to buy a bushel of salt.
• C)buy bacon and trade it for cloth and then trade the cloth for salt because salt is more important for life than either cloth or bacon.
• D)not buy bacon and trade it for cloth because the relative price of 1 bushel of salt is only 1/8 yard of cloth.
• E)buy bacon and trade it for cloth because cloth is more expensive than bacon.

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Definitions:

Think

The process of using one's mind to consider or reason about something.

Speak

To utter words or articulate sounds with the ordinary voice; to express thoughts, opinions, or information verbally.

Encourage

To support, inspire, or motivate individuals or groups to take action or to continue with an activity.

Discourage

To dissuade or deter someone from doing something through persuasion or by creating doubts or fears.