Suppose an Item Sells for $125 in the United States

question 83

Multiple Choice

Suppose an item sells for $125 in the United States and for 62,500 pesos in Chile.According to the law of one price,the nominal exchange rate (pesos/dollar) should be ________.

• A)31,313
• B)either $125,or 62,500 pesos,but not both
• C)0.002
• D)500

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Definitions:

Mainstream Media

Traditional forms of mass communication, such as television, newspapers, and radio, considered to reach and be accepted by the largest audience.

Corporate Interests

The objectives, agendas, or motivations of businesses and corporations, often aimed at maximizing profit, expanding market share, and influencing policy and regulation.

Class Differences

Variations in social status, wealth, education, and power among different groups within society, often leading to disparities in opportunities and life outcomes.

Space Biased

Refers to media that emphasizes the dissemination of information over large distances, favoring the extension of political and cultural influences across geographical spaces.