Assume That $1 Can Buy You Either ¥107 or £

question 23

Multiple Choice

Assume that $1 can buy you either ¥107 or £.55. If a TV in London costs £500,what will that identical TV cost in Tokyo if absolute purchasing power parity exists?

• A) ¥95,255
• B) ¥96,667
• C) ¥97,273
• D) ¥98,008
• E) ¥118,889

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Definitions:

Government in the Sunshine Act

A U.S. law enacted to ensure that meetings of government agencies are conducted in public, promoting transparency.

Sanctions

Measures taken by a country or a coalition of countries to restrict trade, investment, or other economic activity with a target country, organization, or individual for political purposes.

Orders

Directives issued by an authority, such as a court or government agency, that require parties to act or refrain from acting in a certain way.

Administrative Procedure Act

A law in the United States governing the process by which federal agencies develop and issue regulations, including a requirement for public participation.