A Product Sells for $750 in the United States

question 28

Multiple Choice

A product sells for $750 in the United States.The spot exchange rate is $1 to 1.65 Swiss francs.If purchasing power parity (PPP) holds,what is the price of the product in Switzerland?

• A)902.14
• B)1,002.38
• C)1,113.75
• D)1,237.50
• E)1,361.25

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Definitions:

House of Representatives

is the lower chamber of the United States Congress, where members are elected to represent geographical districts for two-year terms.

James Tallmadge

An American politician who proposed an amendment to the Missouri statehood bill, which ignited a nationwide debate over the extension of slavery in the United States.

Senate

The upper chamber in various legislative bodies, particularly in bicameral systems, responsible for making and passing laws.

Slave Trade

The historical trade in which people were captured and sold as slaves, predominantly affecting Africans transported to the Americas.