Assume That $1 Can Buy You Either ¥107 or £

question 23

Multiple Choice

Assume that $1 can buy you either ¥107 or £.55. If a TV in London costs £500,what will that identical TV cost in Tokyo if absolute purchasing power parity exists?

• A) ¥95,255
• B) ¥96,667
• C) ¥97,273
• D) ¥98,008
• E) ¥118,889

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Definitions:

Income Transfer Programs

Government initiatives designed to redistribute money from certain groups of individuals to others, typically from the wealthier segments of society to those in need, to reduce economic inequality.

Able-bodied Poor

Individuals who are physically capable of working but are living in poverty due to unemployment, underemployment, or low wages.

Implicit Marginal Tax Rates

The effective rate at which additional income is taxed, considering both explicit taxes and the phase-out of benefits or allowances.

Incentive to Earn

Motivations or rewards that encourage individuals or entities to increase their income through work or investment.