If the Exchange Rate Between the U

question 66

Multiple Choice

If the exchange rate between the U.S. dollar and the Euro were 1.50 ($1.50 = one Euro) , what would be the price in dollars of a German automobile that cost 40,000 Euros?

• A) $10,000
• B) $20,000
• C) $60,000
• D) $200,000

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Definitions:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Net Benefits

The total benefits of some activity or policy less the total costs of that activity or policy.

Neoclassical Models

Economic models that emphasize rationality, individual optimization, and equilibrium, focusing on how market mechanisms allocate resources efficiently.

Behavioral Economists

Researchers who study how psychological, emotional, and social factors affect economic decision-making.