a. How many packs of diapers could a Venezuelan get in barter for one chicken? pack(s) of diapers b. How many packs of diapers could a Venezuelan get in barter for a kilo of pasta? pack(s) of diapers c. How many bags of flour could be traded for a 3 bottles of shampoo? bags
a. How many packs of diapers could a Venezuelan get in barter for one chicken? pack(s) of diapers b. How many packs of diapers could a Venezuelan get in barter for a kilo of pasta? pack(s) of diapers c. How many bags of flour could be traded for a 3 bottles of shampoo? bags
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:WORLD VIEW
Trading Chickens for Diapers
Bartering for Survival in Venezuela
Caracas. February 28, 2017-Yeman needs
diapers for her 16-month-old baby but
can't find them in neighborhood stores.
The stores in fact have very few goods to
sell and run out of them quickly. So, she
uses her smartphone to check the "United
Moms" chat group on Facebook. There she
discovers that someone has diapers that
they are willing to trade for chicken.
Luckily, Yeman has some chicken. She
contacts the seller and arranges to meet,
where she will swap her chicken for three
packs of diapers.
Yeman's plight is commonplace in
Venezuela these days. The nation's
currency-the bolivar-has become
worthless. Its market value has plummeted
from 6.3 bolivars per U.S. dollar at the
beginning of 2016 to 5,000 bolivars per
U.S. dollar in early 2017. A bolivar doesn't
buy much anymore.
Even if the bolivar were more valuable,
there aren't many goods to buy in
Venezuela's shrunken economy. People
wait for hours in line to buy anything
stores have to sell. Then they turn to
Facebook, WhatsApp, or Instagram to
trade the products they bought for goods
they really want. Recent postings on
Facebook revealed that a bag of flour
could be traded for a bottle of shampoo
and that a packet of diapers could be
obtained for a kilo of pasta. Staples like
sugar, coffee, corn flour, and rice are
particularly hard to find.
Source: February 2017 news reports.
a. How many packs of diapers could a Venezuelan get in barter for one
pack(s) of diapers
chicken?
b. How many packs of diapers could a Venezuelan get in barter for a kilo
of pasta?
pack(s) of diapers
c. How many bags of flour could be traded for a 3 bottles of shampoo?
bags

Transcribed Image Text:d. At the beginning of 2016, how many U.S. cents was a Venezuelan
bolivar worth?
(please round to one decimal place).
Hint: Take the reciprocal of bolivars per dollar to get dollars (or cents) pe.
bolivar.
e At the beginning of 2017, how many U.S. cents was a Venezuelan
bolivar worth
(please round to four decimal
places).
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