The "Big Mac" Index

question 21

Multiple Choice

The "Big Mac" Index

• A) is a popular example of a relative PPP index of a particular commodity.
• B) is an absolute PPP index of the international value of the U.S. dollar based on a single commodity.
• C) demonstrates the growth in international sales of the Big Mac starting in 1983.
• D) has proven to be totally inconsistent with other more sophisticated PPP measures of Currency values.

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Definitions:

Arbitration

A form of alternative dispute resolution where a neutral third party, known as an arbitrator, makes a binding decision to resolve a dispute between two or more parties.

Alternative Dispute Resolution (ADR)

A range of processes, such as mediation and arbitration, to resolve conflicts outside of traditional court settings.

Mediation

A form of alternative dispute resolution where a neutral third party helps the disputing parties reach a mutually acceptable agreement.

Arbitration

A form of alternative dispute resolution where a neutral third party makes a binding decision to resolve a conflict between parties.