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:

Global Sourcing

Global sourcing is the practice of sourcing goods and services from the global market, capitalizing on global efficiencies such as cheaper labor or raw materials.

Antitrust Issues

Legal matters related to regulations that prevent monopolies and promote competition among businesses.

Occupational Safety And Health

The field of public health and safety focused on preventing workplace illnesses, injuries, and accidents through the implementation of various safety standards and regulations.

Equal Employment Opportunity

Legislation that ensures that all individuals have an equal chance for employment, without discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information.