If the Exchange Rate Is 5 Units of Peruvian Currency

question 133

Multiple Choice

If the exchange rate is 5 units of Peruvian currency per dollar and a hotel room in Lima costs 300 units of Peruvian currency,then how many dollars do you need to get a room?

• A) 1,500,and your purchase will increase Peru's net exports.
• B) 60 and your purchase will increase Peru's net exports.
• C) 1,500 and your purchase will have no effect on Peru's net exports.
• D) 60 and your purchase will have no effect on Peru's net exports.

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Definitions:

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Commodity

A basic asset deployed in commercial transactions that is exchangeable with other assets of the same classification.

Maximise

To maximize something to its utmost potential or level.

Input

The resources such as labor, materials, and capital used in the production process to produce output.