Refer to the information provided in Table 33.6 below to answer the question(s) that follow.
Table 33.6
-Refer to Table 33.6. If the exchange rate is $1 = 2 euros, then
A) the United States will import both peas and carrots.
B) France will import both peas and carrots.
C) the United States will import peas and France will import carrots.
D) France will import peas.

Question

Refer to the information provided in Table 33.6 below to answer the question(s) that follow.
Table 33.6 
-Refer to Table 33.6. If the exchange rate is $1 = 2 euros, then
A) the United States will import both peas and carrots. 
B) France will import both peas and carrots. 
C) the United States will import peas and France will import carrots. 
D) France will import peas.

Quizplus · Accepted Answer

Using the exchange rate of $1 = 2 euros, we can convert the prices given in euros to dollars:
- Peas in the U.S.: 5 euros = $10
- Peas in France: 4 euros = $8
- Carrots in the U.S.: 6 euros = $12
- Carrots in France: 9 euros = $18

Comparing the prices, we can see that peas are cheaper in France and carrots are cheaper in the U.S. So, it would make sense for the U.S. to import carrots from France and for France to import peas from the U.S., which corresponds to choice C.

Refer to the Information Provided in Table 33