Use the Following Figures to Answer the Question

question 2

Multiple Choice

Use the following figures to answer the question. What could you conclude if the honeybee in the figure switched from the "waggle dance" to the "round dance"?

• A) The food source is no longer available; all the nectar has been harvested.
• B) The preferred food source was farther away than originally communicated.
• C) The bee is trying to conserve energy by switching to the round dance.
• D) The food source is closer to the hive than originally communicated.

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another.

Relative Purchasing Power Parity

A theory which posits that the rate of inflation in two different countries over a specific period affects the exchange rate between their two currencies.

Expected Inflation

The rate at which the general level of prices for goods and services is expected to rise, eroding purchasing power.

Euros

The official currency of the Eurozone, which is used by 19 of the 27 European Union countries.