If a Watch Costs $50 in the U

question 12

Multiple Choice

If a watch costs $50 in the U.S.and 100 Swiss francs in Switzerland and the exchange rate is 2.25 Swiss franc per dollar,then the dollar is:

• A) Correctly valued according to PPP.
• B) Undervalued relative to PPP.
• C) Overvalued relative to PPP.
• D) Not enough information to find answer.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers an unconditioned response without prior learning.

Discriminative Stimulus

A cue or signal in the environment that indicates that a specific behavior will result in a particular consequence.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any need for learning.

Primary Reinforcer

An innately reinforcing stimulus, such as one that satisfies a biological need.