The Three-Cylinder Mill Revolutionized Sugar Production Around the Year 1500

question 230

Multiple Choice

The three-cylinder mill revolutionized sugar production around the year 1500, allowing sugar cane to be crushed rapidly using animal power (before then, the cane had to be ground by hand with a mortar-and-pestle) . It took only three slaves to operate the machine, a small fraction of what it took to do the same job by hand. What happened to the price of slaves for sugar production?

• A) It increased, because the marginal product of labor increased.
• B) It decreased, because you needed fewer slaves to crush your sugar cane.
• C) It stayed the same, because the factor from (a) balances out the factor from (b).
• D) It decreased, because the marginal product of labor increased. .

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Definitions:

Domestic Subsidies

Financial aid provided by a government to support a domestic industry or sector, reducing the cost of production or services for national companies.

Import Licensing

A government policy requiring businesses to obtain official permission before importing certain goods, often used to control the amount of goods entering a country.

European Works Council

A body representing European employees, established to provide information and consultation rights on transnational matters affecting workers in the European Union.

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A method of discussion between employers and employee representatives aimed at achieving mutual agreements to govern work environments.