The local currency in Peru is the Peruvian Nuevo Sol (PNS). In 2020, the official exchange rate between the PNS and the USD was 3 (i.e., 3 PNS = 1 USD). Table 1 gives local currency prices of three goods in Peru and the United States. Table 1 also gives the expenditure shares of each good (i.e., what fraction of total expenditures do people spend on each good). 

Table 1. Local Prices & Expenditure Shares in Peru and the U.S.

Table 1. Local Prices & Expenditure Shares in Peru and the U.S. Item Expenditure Share Prices in Local Currencies Peru U.S. Corn (1 kg) 0.3 6 PNS 2 USD T-Shirts (1 shirt) 0.2 45 PNS 15 USD Rent (2 bedroom apartment) 0.5 1,000 PNS 1,000 USD