The Concept of Purchasing Power Parity Implies That the

question 42

Multiple Choice

The concept of purchasing power parity implies that the

• A) Big Mac should cost about the same in all countries.
• B) Big Mac should cost more in countries that are large beef consumers, because the demand for hamburgers is greater.
• C) Big Mac is a poor measurement value.
• D) cost of a Big Mac cannot be predicted across countries because it is only one product.

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Definitions:

Attitudes

An individual's learned predispositions to respond in a consistently favorable or unfavorable manner with respect to a given object.

Behavior

The observable actions or responses of individuals or systems.

Variables

Elements, features, or factors that are likely to vary or change within the context of a scientific experiment or study.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, values, or ideas.