The Big Mac Index Shows That the Price of the Big

question 79

Multiple Choice

The Big Mac Index shows that the price of the Big Mac in China converted from the local currency, the yuan, to be $2.18, whereas its price in the United States is $3.73. This shows that:

• A)the Big Mac is more popular in China than in the United States.
• B)the Big Mac is less expensive in the United States than in China.
• C)the Chinese yuan is overvalued when compared to US $.
• D)the Chinese yuan is undervalued against the US $.
• E)beef is less expensive in China than in the United States.

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Definitions:

Management Traits

Characteristics or qualities that are often seen in successful managers, including leadership, decision-making capabilities, and the ability to motivate and guide teams.

High Concern

A state of heightened focus or worry regarding a particular issue, situation, or matter that requires attention.

Democratic Leader

A leadership style characterized by sharing decision-making responsibilities among members of the group, valuing the input of team members and stakeholders.

Autocratic Leader

A leader who makes decisions unilaterally without consulting others, often exerting high levels of control over all aspects of a group or organization.