Louis Owns an Import Business

question 197

Multiple Choice

Louis owns an import business. After traveling to France on numerous occasions, he developed a taste for fine French wines. A radio report that he heard this morning indicated that the dollar has fallen sharply against the euro. Based on this information, Louis expects that:

• A) American goods will become more expensive in France.
• B) French wines will become more expensive in the United States.
• C) French wines will become less expensive in the United States.
• D) the French government will place an embargo on American exports.

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Definitions:

Cost-Benefit Analysis

A comparison of the costs and benefits of each potential course of action.

Lack-Of-Participation Error

Failure to involve in a decision the persons whose support is needed to implement it.

Classical Decision Model

A theory suggesting decision-making is a rational process, where choices are made logically and with full information.

Complete Information

A situation where all participants have access to all relevant information needed to make informed decisions without any hidden or missing data.