The Price of a Big Mac in the U

question 61

Multiple Choice

The price of a Big Mac in the U.S. is $3.41 and the price in Mexico is Peso 29.0. What is the implied PPP of the Peso per dollar?

• A) Peso 8.50/$1
• B) Peso 10.8/$1
• C) Peso 11.76/$1
• D) None of the above

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Definitions:

Demand Curve

A chart that illustrates the connection between a product's cost and the amount of the product customers are prepared to buy at different price levels.

Equilibrium Quantity

The amount of products or services available and sought at the balance price, where the supplied quantity matches the demanded quantity.

Tax Revenue

The revenue collected by governments via taxes, which is allocated to finance public services and meet governmental duties.

Total Tax

The cumulative amount of taxes imposed by a government from various sources, including income, sales, and property taxes.