As an International Price Index for Studying Purchasing Power Parity,the

question 16

Multiple Choice

As an international price index for studying purchasing power parity,the Economist's "Big Mac Index" suffers from several defects. A graduate student in Economics wishes to construct a somewhat better index. Among the following choices,the most suitable output for this purpose would be

• A) a haircut
• B) a laptop computer
• C) a two-bedroom apartment
• D) a basket of goods consisting of a Dunlop radial tire, a 60-watt General Electric light bulb, a Nokia cell phone, and a 12-ounce can of Coca Cola
• E) a basket of goods and services consisting of one acre of undeveloped land, a one-mile taxi cab ride, a one-year government bond, and one gallon of milk

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Definitions:

Mastoid Bone

A bone located behind the ear, part of the temporal bone, containing air cells that can become infected in mastoiditis.

Obturator

Anything that obstructs or closes a cavity or opening; refers to that internal portion of an examining instrument that facilitates the introduction of the instrument into the body and is then withdrawn, permitting visualization of the internal area.

Biopsy Forceps

A surgical tool used to take small samples of tissue from the body for examination and diagnosis of disease.

Sigmoidoscope

A medical instrument used to view the interior of the sigmoid colon and rectum, facilitating the detection of abnormalities.