Suppose That the Dollar Buys More Coffee in Honduras Than

question 170

Multiple Choice

Suppose that the dollar buys more coffee in Honduras than in Guatemala. How could traders make a profit?

• A) by buying coffee in Honduras and selling it in Guatemala, which would tend to raise the price of coffee in Honduras
• B) by buying coffee in Honduras and selling it in Guatemala, which would tend to raise the price of coffee in Guatemala
• C) by buying coffee in Guatemala and selling it in Honduras, which would tend to raise the price of coffee in Guatemala
• D) by buying coffee in Guatemala and selling it in Honduras, which would tend to raise the price of coffee in Honduras

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Definitions:

Permanent

Describes something that is intended to exist or last indefinitely without change, ending, or expiry.

Extended Family

Expands the nuclear family “vertically” by adding another generation—one or more of the spouses’ parents—to the household.

Same Household

Refers to individuals who reside in the same dwelling, sharing living quarters and daily lives, often related by blood, marriage, or legal ties.

Grandparents

The parents of one's parents, who can play various roles in the family structure, from caregivers to sources of wisdom and tradition.