The Number of Units of Developing Country Currency Required to Purchase

question 40

Multiple Choice

The number of units of developing country currency required to purchase a basket of goods and services in a developing country that costs one dollar in the U.S.is given by

• A)GNP price deflator.
• B)Human Development Index ranking.
• C)purchasing power parity.
• D)the exchange rate.

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Definitions:

Inversely Related

A term describing two variables that move in opposite directions; as one increases, the other decreases.

Inferior Good

A type of good for which demand decreases as the income of individuals increases, inversely related to the financial well-being of the consumer.

Tuna Fish Sandwiches

A type of sandwich made primarily from canned tuna fish and other ingredients such as mayonnaise and celery.

Substitutes

Goods or services that can be used in place of each other, satisfying the same needs or wants.