Wages Relative to the Price of Energy in Six Cities (Early 1700s)
In the early 1700s, there were significant international differences in the relative cost of labor and energy. Data comparing the wages of building laborers to the price of one million British Thermal Units (BTU) of energy reveals this disparity. The ratio of labor cost to energy cost was highest in England and the Netherlands, lower in French cities like Paris and Strasbourg, and substantially lower in China.
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Wages Relative to the Price of Energy in Six Cities (Early 1700s)
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Learn After
Based on the diagram showing the wages of building laborers divided by the cost of 1 million BTUs of energy in several cities during the early 1700s, which statement is correct?
What does the diagram suggest about the economic conditions in England and the Netherlands during the early 1700s?
According to the diagram, how did the cost of labor relative to energy in England and the Netherlands compare to that in China during the early 1700s?
What conclusion can be drawn about the cost of labor relative to energy in Paris and Strasbourg compared to England and the Netherlands during the early 1700s?
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The provided chart displays the cost of labor relative to the cost of energy in various cities during the early 1700s. Based on this information, a business owner would have had a greater financial incentive to replace workers with energy-powered machines in Paris than in London.
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