Assume That $1 Can Buy You Either ¥107 or £

question 23

Multiple Choice

Assume that $1 can buy you either ¥107 or £.55. If a TV in London costs £500,what will that identical TV cost in Tokyo if absolute purchasing power parity exists?

• A) ¥95,255
• B) ¥96,667
• C) ¥97,273
• D) ¥98,008
• E) ¥118,889

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Definitions:

Cimabue

An Italian painter and designer from the late 13th century, considered one of the last great Italian artists in the Byzantine style.

Late Gothic

A style of Gothic architecture and art that developed in the late Middle Ages, characterized by elaborate decorations, intricate designs, and the use of flying buttresses.

Doge's Palace

A historic Venetian palace in Italy, once the residence of the Doge of Venice, known for its Gothic architecture and position overlooking the Grand Canal.

Venice

A city in northeastern Italy, famed for its canals, Gothic and Renaissance architecture, and as a center for trade and the arts during the Renaissance.