Refer to the information provided in Table 20.3 below to answer the question(s) that follow.
Table 20.3 $$\begin{array} { l c c }
& \text { United States } & \text { Belgium } \
\hline \text { Raspberries } & \$ 9 & 9 \text { euros } \
\text { Chocolate } & \$ 12 & 27 \text { euros }\
\hline
\end{array}$$
-Refer to Table 20.3. If the exchange rate is $1 = 2 euros, then
A) the United States will import both raspberries and chocolate.
B) Belgium will import both raspberries and chocolate.
C) the United States will import raspberries and Belgium will import chocolate.
D) Belgium will import chocolate.

Question

Refer to the information provided in Table 20.3 below to answer the question(s) that follow.
Table 20.3 $$\begin{array} { l c c } 
& \text { United States } & \text { Belgium } \
\hline \text { Raspberries } & \$ 9 & 9 \text { euros } \
\text { Chocolate } & \$ 12 & 27 \text { euros }\
\hline
\end{array}$$
-Refer to Table 20.3. If the exchange rate is $1 = 2 euros, then
A) the United States will import both raspberries and chocolate.
B) Belgium will import both raspberries and chocolate.
C) the United States will import raspberries and Belgium will import chocolate.
D) Belgium will import chocolate.

Quizplus · Accepted Answer

To determine which country will import which goods, we need to compare the prices in a common currency. At an exchange rate of $1 = 2 euros, the prices in euros can be converted to dollars: - Raspberries in Belgium cost 9 euros, which is equivalent to $4.50 (9 euros / 2 euros per dollar). - Chocolate in Belgium costs 27 euros, which is equivalent to $13.50 (27 euros / 2 euros per dollar). Therefore, the United States will import raspberries since they are cheaper in Belgium ($4.50 vs. $9), and Belgium will import chocolate since it is cheaper in the United States ($12 vs. $13.50).

Refer to the Information Provided in Table 20 -Refer to Table 20