If Purchasing-Power Parity Holds,a Bushel of Rice Costs $10 in the U.S

question 22

Multiple Choice

If purchasing-power parity holds,a bushel of rice costs $10 in the U.S. ,and the nominal exchange rate is 25 Thai baht per dollar,what is the price of rice in Thailand?

• A)400 baht
• B)250 bhat
• C)100 bhat
• D)None of the above is correct.

---

Definitions:

Mesosystem

In ecological systems theory, the mesosystem refers to the interactions between different microsystems, like the relationship between a child's home and school environment.

Macrosystem

The largest and most remote set of people and places to a person that still exercises a significant influence on them, according to ecological systems theory.

Exosystem

A term in ecological systems theory referring to the social settings that indirectly influence an individual's development, such as parental workplaces.

Microsystem

In ecological systems theory, the immediate environment in which individuals interact face-to-face, such as family, school, and peer groups.