Scenario: the Price of a Standard Basket of Goods in Country

question 90

Multiple Choice

Scenario: The price of a standard basket of goods in Country A is 10 pesos. The price of the same basket of goods in country B is 25 francs and $5 in the United States. Country A has an income per capita of 60,000 pesos, and country B has an income per capita of 100,000 francs. Assume full employment in both countries.
-Refer to the scenario above.Why could it be the case that the standard of living is higher in country B than in country A?

• A) The PPP-adjusted GDPs differ from the exchange-rate-adjusted GDPs.
• B) The numbers of workers in the two countries are not equal.
• C) The exchange rates between pesos and the U.S. dollar and francs and the U.S. $ differ.
• D) The composition of GDP per capita is not homogeneous within each country.

Identify unique human capacities, such as reflection and self-awareness.

Analyze the ethical implications of philosophical theories and the importance of principles in decision-making.

Understand the implications of ethical relativism and moral absolutism.

Grasp the historical and conceptual shift from geocentric to heliocentric models in astronomy.

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Definitions:

Secured Interest

A legal claim or lien on collateral pledged by a borrower to secure a loan, providing the lender with rights to the property if the borrower defaults.

Personal Property

Movable property that is not fixed to one location and can be owned by an individual, as opposed to real property or real estate.

Mutual-Benefit Bailment

A contractual agreement where both the bailor and bailee receive benefits from the arrangement of temporarily transferring personal property.

Financing Statement

A document filed to give public notice of a security interest in collateral, providing information about the debtor, secured party, and collateral.