Assume That a Big Mac Cost $4

question 40

Multiple Choice

Assume that a Big Mac cost $4.93 in the U.S.and that the Brazilian real is undervalued by 23 percent.According to the Big Mac Index published by The Economist,a Big Mac would

• A)cost a bit more in Brazil than in the U.S.by By 16 percent 16 16 percent
• B)cost less in Brazil than in the U.S.
• C)cost the same in both countries.Cost the same in bothThe Unconnected
• D)would cost twice as much in Brazil.
• E)would cost less than half of the U.S.price in Brazil.

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Definitions:

Basaltic Lava

A type of lava originating from mafic rock, characterized by low viscosity and a high content of magnesium and iron, making it very fluid.

Iron-Rich Minerals

Minerals that contain a significant amount of iron, such as hematite, magnetite, and siderite, crucial for various geological and industrial processes.

Hot Spot

A location on the Earth's surface that experiences intense volcanic activity, typically resulting from a plume of hot material rising from deep within the mantle.

Northwest-Southeast Line

This term may refer to a geographic alignment or direction, potentially indicating the orientation of geological features or human-made structures.