The Economist Publishes Annually the "Big Mac Index" by Which

question 23

Multiple Choice

The Economist publishes annually the "Big Mac Index" by which they compare the prices of the McDonald's Corporation's Big Mac hamburger around the world. The index estimates the exchange rates for currencies based on the assumption that the burgers in question are the same across the world and therefore, the price should be the same. If a Big Mac costs $2.54 in the United States and 294 yen in Japan, what is the estimated exchange rate of yen per dollar as hypothesized by the Hamburger index?

• A) $0.0086/¥
• B) ¥124/$
• C) $0.0081/¥
• D) ¥115.75/$

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Definitions:

Plaintiff Reimbursement

The process through which a plaintiff may be compensated for costs or losses incurred, often as part of the judgment in a legal case.

Res Ipsa Loquitur

A legal doctrine that allows for the assumption of negligence on the part of a defendant when an accident is of a type that typically does not occur without negligence.

Doctrine Application

A legal principle that is applied to a case or situation to resolve it.

Actual Cause

The direct, factual reason something happened in legal causation, often referred to as 'cause in fact.'