Consider Two Countries, Mondrain and Davenport That Are on the Gold

question 21

Multiple Choice

Consider two countries, Mondrain and Davenport that are on the gold standard exchange rate system. Suppose the exchange rate between monds (Mondrain's currency) and divas (Davenport's currency) is 4 divas per mond and the price of gold in Mondrain is fixed at 60 monds per ounce of gold. What is the price of gold in Davenport?

• A) 6.66 divas per ounce of gold
• B) 15 divas per ounce of gold
• C) 24 divas per ounce of gold
• D) 240 divas per ounce of gold

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Definitions:

Mere Exposure Effect

A mental effect where people start liking things simply because they know them well.

External Validity

The extent to which the results of a study can be generalized to other situations and to other people.

Multiple Act Criterion

A standard in social and behavioral research that emphasizes judging behaviors or actions based on a series of observations, rather than a single instance.

Thurstone Scale

A psychometric scale developed by Louis Thurstone to measure attitudes, consisting of statements about a particular issue with varying degrees of agreement or disagreement.