In France, the Price of a Computer Is 1,227

question 431

Multiple Choice

In France, the price of a computer is 1,227.6 euros. In Japan, the price of the same computer is 137,920 yen. If a U.S. dollar can buy 1.023 euros or 119.93 yen, then purchasing power parity
)

• A) is equal to interest rate parity and the computer is cheaper in North America
• B) does not hold and the computer is cheaper in Japan
• C) does not hold and the computer is cheaper in France
• D) holds and the computer is the same price everywhere

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Definitions:

Industrial Economy

An economy characterized by the mass production of goods in factories, significant technological advancement, and the predominance of the manufacturing and service sectors.

Labor Unions

Organizations representing workers in various industries to negotiate wages, working conditions, and benefits on their behalf.

Social Equality

Social equality refers to a state of affairs in which all individuals within a society have the same status in certain respects, including civil rights, freedom of speech, property rights, and equal access to social goods and services.

Northern State

In the context of the American Civil War, a Northern state refers to any of the states that were part of the Union, opposing the seceding Confederate Southern states.