Multiple Choice

An economic historian presents the following simplified data for two countries in the 18th century:

CountryAverage Daily Wage for a LaborerCost of 1 Million BTUs of Energy (from coal)
Country A3 shillings10 shillings
Country B12 shillings5 shillings

A new steam-powered machine is invented that can do the work of ten laborers but consumes a large amount of coal. Based on the economic incentives created by these cost structures, which of the following conclusions is most plausible?

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Updated 2025-08-27

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