​ ​ -Refer to Table 4-1.At $4, What Is the Shortage

question 252

Multiple Choice

​ ​
-Refer to Table 4-1.At $4, what is the shortage?

• A)0
• B)1,500
• C)3,000
• D)4,500
• E)6,000

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Definitions:

Big Mac Index

An informal measure of currency exchange rates using the price of a McDonald's Big Mac as a benchmark to compare the purchasing power parity between two currencies.

The Economist

A renowned international weekly newspaper that focuses on current affairs, international business, politics, technology, and culture.

Exchange Rates

The price of foreign currency; for example, how many dollars we must give up in exchange for marks, yen, and pounds.

Balance Of Payments

A record of all economic transactions between residents of a country and the rest of the world in a given period.