Suppose Purchasing Power Parity (PPP) Depends Only on Hotel Rooms

question 174

Multiple Choice

Suppose purchasing power parity (PPP) depends only on hotel rooms. The exchange rate is C$1.00 = US$0.80 and a room at the Weston Hotel in Niagara Falls, Ontario costs C$200. PPP suggests that the price of a room at the Weston Hotel in Niagara Falls, New York should be

• A) US$ 80.
• B) US$ 200.
• C) US$ 250.
• D) US$ 125.
• E) US$ 160.

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Definitions:

Intrapersonal Intelligence

The capacity to understand oneself, including one's emotions, motivations, and thoughts, part of Howard Gardner's theory of multiple intelligences.

Language Acquisition

The process by which humans acquire the ability to perceive, produce, and understand language, typically occurring in childhood.

Classical Conditioning

A training method where two signals are consistently linked together, leading to a reaction initially triggered by the second signal being subsequently triggered by the first signal alone.

Acquisition

Acquisition refers to the initial stage of learning when a response is first established or the phase during which a new behavior is being learned.