Lets Return to the Big Mac Index and the Concept

question 72

Multiple Choice

Lets return to the Big Mac Index and the concept of Purchasing Power Parity. If the price of a Big Mac burger in the United States is $4.25 and the current €/$ exchange rate is €0.7506/$, what is the implied price of a Big Mac in France?

• A) $3.19
• B) €3.19
• C) €5.66
• D) €4.25

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Definitions:

Phenols

Organic compounds consisting of a hydroxyl group (-OH) attached directly to an aromatic hydrocarbon group.

Acidity

Refers to the measure of a substance's ability to donate a proton or accept an electron pair in chemical reactions.

Acid-Base Reaction

A chemical reaction involving the transfer of a proton (H⁺) from an acid to a base.

Pka Values

Numerical values that measure the acidity of protons in molecules based on their ability to be donated in an aqueous solution.