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Consider the following income streams per year of Maria Valdez working in Costa Rica. She raises 100 thousand pesos from market sales of her farm's
Consider the following income streams per year of Maria Valdez working in Costa Rica. She raises 100 thousand pesos from market sales of her farm's produce, produces some basic consumption goods for herself and her family, while her husband Juan sends home \$2,000 in USD from his job in the US. Maria also sells some arts and crafts to tourists from her small shop on the farm, earning an additional $1,000 cash in dollars. You are given below the average exchange rate - pesos per dollar - during the year, both the market rate and the purchasing power parity rate. Purchasingpowerparity(PPP)rateExchangeratedata:Marketratepesosperdollarpesosperdollar A. Fill in the following blank cells above in the income data both in USD and pesos. B. Add the answers to get an estimate of Maria's household income for the year in terms of its purchasing power in terms of comparable goods and services in her country. C. Elaborate on your answer, defending your calculations and reasoning Consider the following income streams per year of Maria Valdez working in Costa Rica. She raises 100 thousand pesos from market sales of her farm's produce, produces some basic consumption goods for herself and her family, while her husband Juan sends home \$2,000 in USD from his job in the US. Maria also sells some arts and crafts to tourists from her small shop on the farm, earning an additional $1,000 cash in dollars. You are given below the average exchange rate - pesos per dollar - during the year, both the market rate and the purchasing power parity rate. Purchasingpowerparity(PPP)rateExchangeratedata:Marketratepesosperdollarpesosperdollar A. Fill in the following blank cells above in the income data both in USD and pesos. B. Add the answers to get an estimate of Maria's household income for the year in terms of its purchasing power in terms of comparable goods and services in her country. C. Elaborate on your answer, defending your calculations and reasoning
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