Suppose a Given Basket of Goods and Services Costs 6

question 139

Multiple Choice

Suppose a given basket of goods and services costs 6 dollars in the United States and 4,500 won in Korea. If the exchange rate is 900 won per dollar, purchasing power parity implies that the:

• A)exchange rate has attained its long run equilibrium value.
• B)dollar must appreciate to restore purchasing power parity.
• C)dollar must depreciate to restore purchasing power parity.
• D)won must depreciate to restore purchasing power parity.

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Definitions:

Procedural Unconscionability

Refers to a situation in contract law where the manner in which a contract was formed is unfair or oppressive, often due to unequal bargaining power or lack of choice.

Adhesion Conscionability

Adhesion conscionability examines whether a contract, typically a "take-it-or-leave-it" deal presented by the stronger party to the weaker, is so one-sided that it is unfair to the weaker party and therefore unenforceable.

Procedural Unconscionability

A legal principle referring to circumstances where the process involved in making a contract is deemed unfair or unjust, often due to a significant imbalance in power or information between the parties.

Substantive Unconscionability

A legal doctrine that allows courts to refuse to enforce a contract or part of it, if the contract is excessively unfair or oppressive.