On Behalf of Your Firm, You Make Frequent Trips to Hong

question 40

Multiple Choice

On behalf of your firm, you make frequent trips to Hong Kong. You notice that you always have to pay more dollars to get enough local currency to get your hair styled than you have to pay to get your hair styled in Canada. Is this consistent with purchasing power parity?

• A)No, but it might be explained by limited opportunities for arbitrage across international borders.
• B)Yes, if prices in Hong Kong are rising more rapidly than prices in Canada.
• C)Yes, if prices in Hong Kong are rising less rapidly than prices in Canada.
• D)No, but it can be explained by arbitrage across international borders.

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Definitions:

Genotype Frequency

The proportion of a particular genotype in the population. Compare with allele frequency and phenotype frequency.

Aa Genotypes

Refers to the genetic makeup of an organism having one dominant allele (A) and one recessive allele (a) for a particular trait.

Hardy-Weinberg Predictions

Hardy-Weinberg predictions are mathematical expressions that describe the expected frequencies of genotypes in a population under certain conditions, including random mating and absence of evolutionary forces.

Genetic Equilibrium

A state in a gene pool where the frequency of alleles remains constant from generation to generation in the absence of evolutionary forces.