A good steak dinner in the U.S. costs $49 while the exact meal costs 660 pesos across the border in Mexico. Based on purchasing power parity, what is the implied Peso/$ exchange rate?

Question

Quizplus · Accepted Answer

To determine the implied Peso/$ exchange rate, we divide the cost of the meal in pesos by the cost of the meal in dollars:
660 pesos ÷ $49 = 13.47 pesos per dollar (rounded to two decimal places).
Therefore, the best choice is B.

A Good Steak Dinner in the U