The "Big Mac Theory of Exchange Rates" Tests the Accuracy

question 34

Essay

The "Big Mac Theory of Exchange Rates" tests the accuracy of purchasing power parity theory.In July 2011, The Economist reported that the average price of a Big Mac in Canada was $4.07.In Switzerland, the average price of a Big Mac was 6.50 Swiss francs.If the exchange rate between the Canadian dollar and the Swiss franc was 0.93 Swiss francs per Canadian dollar, how would purchasing power parity predict the exchange rate would change in the long run? Support your answer graphically.

Discuss theories related to human evolutionary adaptations, such as the radiator hypothesis and the effects of cooking on diet.

Understand the basic anatomical and physiological differences between humans and other primates.

Comprehend the factors influencing human dietary practices and their effects on evolution.

Recognize the correlation between brain size, intelligence, and various external factors.

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Definitions:

Synovial Fluid

A viscous fluid found in the cavities of synovial joints that reduces friction between articular cartilages during movement.

Friction

The resistance that one surface or object encounters when moving over another, often resulting in the generation of heat.

Bony Junctions

The connections between bones, often referring to joints or areas where bones meet and articulate.

Synovial Joint

A type of movable joint encapsulated in a synovial membrane that secretes lubricating synovial fluid, allowing smooth movement between bones.