Recall the Application About the Price of Big Macs in China

question 50

Multiple Choice

Recall the Application about the price of Big Macs in China and around the world to answer the following question(s) .
The following table is taken from the Application. For several years, The Economist has measured the prices of Big Macs throughout the world and compared the price differences to exchange rates.

-According to the table, the price of Big Macs converted to U.S. dollars varies widely around the world. This shows that Big Macs do NOT follow the

• A) law of demand.
• B) law of exchange rate parity.
• C) law of one price.
• D) law of opportunity cost.

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