If Wisconsin Cheddar Cheese Sells for $3

question 116

Multiple Choice

If Wisconsin cheddar cheese sells for $3.00 per pound in the United States and for 27.90 pesos in Mexico, what is the exchange rate between the dollar and the peso (assuming PPP holds) ?

• A)$1 = 2.79 pesos
• B)$1 = 7.90 pesos
• C)$1 = 9.30 pesos
• D)$1 = 27.90 pesos

---

Definitions:

Tundra

A biome characterized by cold temperatures, low precipitation, a short growing season, and a lack of trees, found in high latitudes and atop mountains.

Earthquakes

Natural seismic events typically caused by the movement of tectonic plates that can result in ground shaking and displacement.

Arctic Winds

Cold, often powerful winds originating from the Arctic regions, affecting climate and weather patterns.

Montane Successional Gradient

The sequence of community changes which occur on a mountain over time, from pioneer species to a stable climax community.