Table 31-1

-Refer to Table 31-1. In real terms, Canadian goods are less expensive than goods in which of the following countries?
A)Bolivia and Morocco
B)Japan, Norway, and Thailand
C)Japan and Norway
D)Thailand

Question

Table 31-1
 
-Refer to Table 31-1. In real terms, Canadian goods are less expensive than goods in which of the following countries?
A)Bolivia and Morocco 
B)Japan, Norway, and Thailand 
C)Japan and Norway 
D)Thailand

Quizplus · Accepted Answer

From the table, we can see that the PPP-based exchange rates for Japan and Norway are higher than Canada's, which means that prices for goods are higher in these countries than in Canada. Therefore, Canadian goods are less expensive in Japan and Norway. Bolivia and Morocco are not included in the table, and Thailand's PPP-based exchange rate is slightly lower than Canada's, but not enough to consider it significant. Therefore, the correct answer is C, Japan and Norway.

Table 31-1 -Refer to Table 31-1. in Real Terms, Canadian Goods Are