The Big Mac Index Demonstrates the Concept of Purchasing Power

question 54

Multiple Choice

The Big Mac Index demonstrates the concept of Purchasing Power Parity.If the current price of a Big Mac hamburger in the United States is $3.55,and the current price of the same burger in Germany is €3.15,what is the implied exchange rate of dollars per euro?

• A)$0.8873/€
• B)$1.1270/€
• C)$1.2421/€
• D)$1.3333/€

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Definitions:

Value-Added Efforts

Initiatives or activities that enhance the worth of products, services, or processes, providing additional benefits to customers or stakeholders.

Scrap Rates

The percentage of materials or products that are discarded because they are not up to the required standards or specifications.

Continuous Improvement

A sustained endeavor to refine products, services, or processes through gradual and revolutionary enhancements.

Performance Management

Is a continuous process of identifying, measuring, and developing the performance of individuals and teams, through genuine feedback, mentoring and training, and ensuring alignment of every single job in the organisation with the strategic goals of the organisation.