A Pair of Running Shoes Costs $70 in the U

question 17

Multiple Choice

A pair of running shoes costs $70 in the U.S.If the price of the same shoes is 4500 rupees in India and the exchange rate is 60 rupees per dollar,than the real exchange rate is

• A)more than 1,so a profit could be made by buying these shoes in the U.S.and selling them in India.
• B)more than 1,so a profit could be made by buying these shoes in India and selling them in the U.S.
• C)less than 1,so a profit could be made by buying these shoes in the U.S.and selling them in India.
• D)less than 1,so a profit could be made by buying these shoes in India and selling them in the U.S.

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Definitions:

Perceptual Set

A tendency to perceive or notice some aspects of the available sensory data and ignore others, influenced by expectations, culture, emotions, and other psychological factors.

Top-Down

Top-Down processing refers to a cognitive approach where perception starts with the formulation of a high-level concept, and then works down to the finer details.

Just Noticeable Difference

The smallest alteration in a stimulus that an organism can barely perceive.

Schemas

Cognitive structures that help us organize and interpret information, based on our accumulated knowledge and experience.