If the Price of Big Mac Is $3

question 31

Essay

If the price of Big Mac is $3.61 in the U.S.and 3.405 € in France,and PPP holds,what is the value of the euro in dollars that is implied by The Economist magazine's Big Mac index?
A)$1.060
B)$0.943
C)$1.943
D)None of the above.

• A)$1.060
• B)$0.943
• C)$1.943
• D)None of the above.

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Definitions:

Predictive Validity

Predictive validity refers to the extent to which a test score or measure accurately predicts future performance on a related task or outcome.

Intelligence Tests

Intelligence tests are standardized exams or assessments designed to measure human intelligence and cognitive abilities.

Mental Aptitudes

Natural abilities or talents that influence an individual's capacity to learn and perform in various tasks.

Heritability

A measure of how much of the variation in a trait among individuals can be attributed to genetic differences.