Table 141Hypothetical Costs of Producing an Automobile for Toyota Inc

question 27

Multiple Choice

Table 14.1.Hypothetical Costs of Producing an Automobile for Toyota Inc.of Japan

-Refer to Table 14.1.Assume that Toyota Inc.imports steel from U.S.suppliers,whose costs are denominated in dollars,while all other inputs are obtained from Japanese suppliers whose costs are denominated in yen.If the yen's exchange value appreciates from 200 yen = $1 to 100 yen = $1,the yen cost of a Toyota automobile equals:

• A) 2,400,000 yen
• B) 3,000,000 yen
• C) 3,600,000 yen
• D) 4,200,000 yen

---

Definitions:

James Fenimore Cooper

An American writer of the early 19th century, known for his historical novels of frontier and Native American life, notably for "The Last of the Mohicans."

Office of Indian Affairs

A government agency, now known as the Bureau of Indian Affairs, responsible for the administration and management of land held by Native Americans.

European-Style Villages

European-Style Villages in the U.S. refer to settlements or communities designed and built to mimic the architecture, layout, and sometimes the culture of towns typically found in Europe, often for aesthetic or historical preservation purposes.

Appalachian West

A region in the United States characterized by the Appalachian Mountains, known for its distinct cultural and historical identity, largely rural and forested areas.