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.