In the Presence of Purchasing-Power Parity, If One Dollar Exchanges

question 104

Multiple Choice

In the presence of purchasing-power parity, if one dollar exchanges for two British pounds and if a VCR costs $400 in the United States, then in Great Britain the VCR should cost

• A) 200 pounds.
• B) 400 pounds.
• C) 600 pounds.
• D) 800 pounds.

---

Definitions:

Fixed Mind-Set

A belief that one's abilities, intelligence, and talents are fixed traits, leading to a desire to appear smart instead of learning from failures.

Test-Taking Smarts

Strategies and skills used to efficiently and effectively navigate and respond to questions posed in an exam setting.

Intelligence

Intelligence is a complex trait that encompasses cognitive abilities, such as reasoning, problem-solving, and learning.

Stereotype Threat

The psychological experience of anxiety or concern in a situation where a person has the potential to confirm a negative stereotype about their social group.