The Big Mac Index Demonstrates the Concept of Purchasing Power

question 51

Multiple Choice

The Big Mac Index demonstrates the concept of Purchasing Power Parity.If the price of a Big Mac burger in the United States is $3.95 and the current €/$ exchange rate is €0.8535/$1,what is the implied price of a Big Mac in France?

• A)$3.37
• B)€3.37
• C)€3.17
• D)€3.06

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Definitions:

Currency

A system of money in common use, especially in a nation, or the property of data that allows it to be treated as a monetary amount in computing.

Navigation Pane

A user interface component that provides a structured and easy way to access different sections or features within an application or website.

Rename

The process of changing the name of a file, variable, or other item in a computer system or program.

Field Size

The maximum amount of data that can be stored in a database field, typically defined in number of characters or bytes.