If the Assumptions for the Theory of Purchasing Power Parity

question 71

Multiple Choice

If the assumptions for the theory of purchasing power parity are correct,then how much does an oil change for a Toyota Prius cost in Japan if the same oil change for the same Toyota Prius costs $29.95 in the United States and the exchange rate is $0.011 per Japanese yen?

• A) This cannot be determined with the given information because oil changes are not tradable.
• B) 2,723 yen
• C) 0.33 yen
• D) 272 yen
• E) 3.29 yen

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Definitions:

Intramuscular

Intramuscular describes an injection given directly into the muscle, allowing for the rapid absorption of medication into the bloodstream.

Directions

Instructions or guidance on how to reach a destination, perform a task, or operate something.

Bid

An offer of a specific price for goods or services, especially in the context of auctions or competitive tenders.

Pc

Often synonymous with Personal Computer, a general-purpose electronic computing device designed for individual use.