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If the Exchange Rate Is 12

question 131

True/False

If the exchange rate is 12.5 pesos per U.S. dollar, it is also 1/12.5 U.S. dollars per peso.


Definitions:

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Importing

The process of importing products or services from other countries for the purpose of selling them domestically.

High-Opportunity Cost

A situation where choosing one option results in the loss of the potential gain from other alternatives.

Low-Opportunity Cost

Refers to a situation where choosing one option results in the smallest possible sacrifice in terms of the value of the next best alternative.

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