Lets Return to the Big Mac Index and the Concept

question 38

Multiple Choice

Lets return to the Big Mac Index and the concept of Purchasing Power Parity. If the current price of a Big Mac hamburger in the United States is $3.80, and the current price of the same burger in Germany is €2.75, what is the implied exchange rate of dollars per euro?

• A) $0.7237/€
• B) $1.3818/€
• C) $1.4421/€
• D) $1.5133/€

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Definitions:

Self-reinforcement

The process whereby individuals or groups reinforce their own behaviors or beliefs through positive outcomes or internal rewards, reinforcing the likelihood of repeated actions.

Positive Self-talk

The practice of making affirmative or supportive statements to oneself to improve confidence and reduce negative feelings.

Scientific Management

A management theory focusing on improving economic efficiency, especially labor productivity, through scientific methods.

Membership-based Rewards

Benefits or incentives provided to individuals based on their affiliation or status within a group or organization.