Scenario: The price of a given basket of goods in Country 1 is 10 karls. The price of the same basket of goods in Country 2 is 25 ritz and is $2 in the United States. Country 1 has an income per capita of 3,200 karls, and Country 2 has an income per capita of 5,500 ritz.
-Refer to the scenario above.A basket of goods worth $1 in the United States has a price of ________ in Country 2.
A) 12.5 ritz
B) 25 ritz
C) 50 ritz
D) 320 ritz

Question

Quizplus · Accepted Answer

Given that a basket of goods is $2 in the United States and 25 ritz in Country 2, a basket of goods worth $1 (half of $2) would cost half of 25 ritz, which is 12.5 ritz.

Scenario: the Price of a Given Basket of Goods in Country