Use the Following to Answer Questions

question 302

Multiple Choice

Use the following to answer questions :
Scenario: Purchasing Power Parity
A car costs $30,000 in the United States and the exchange rate is $1 = £0.50. The same car costs £12,000 in Britain.
-(Scenario: Purchasing Power Parity) Look at the scenario Purchasing Power Parity. To have purchasing power parity, the pound must:

• A)appreciate.
• B)depreciate.
• C)remain constant.
• D)be purchased in foreign exchange markets.

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Definitions:

Legal Immigrants

Individuals who have been granted the right to live permanently in a country, following the legal requirements of immigration laws.

Family-Sponsored Immigrants

Individuals who are allowed to immigrate to a country based on family ties, including spouses, children, and other close relatives of citizens or legal residents.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value.

Wage Opportunities

The availability and scope for individuals to earn income through employment or labor in the market.