Assume That a Big Mac Burger Costs $3

question 55

Multiple Choice

Assume that a Big Mac burger costs $3.57 in Australia and 7.80 zlotys in Poland. If the exchange rate is 3 zlotys per dollar, purchasing power parity predicts that the dollar will:

• A)appreciate as the demand for dollars rises in the long run.
• B)appreciate as the supply of dollars falls in the long run.
• C)depreciate as the demand for dollars falls in the long run.
• D)depreciate as the supply of dollars rises in the long run.

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Definitions:

Low Conformers

Individuals who think independently, solve problems creatively, and often cause some conflict in the process.

Managing

The act of coordinating and overseeing the responsibilities and tasks of a business or project to achieve defined objectives.

Patience

The capacity to accept or tolerate delay, trouble, or suffering without getting angry or upset.

Compromisers

Individuals who adopt a give-and-take approach in conflict resolution to reach a mutually acceptable solution.