If the Price for a Big Mac in the US

question 26

Multiple Choice

If the price for a Big Mac in the US is $2.00 and the price for a Big Mac in the UK is ₤3,what is the absolute purchasing-power parity equilibrium exchange rate between the dollar and the Euro (using the dollar as the domestic currency) ?

• A).667
• B)1.5
• C).333
• D)None of the above

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Definitions:

Demographic Transition

A model that describes the transformation of a country's population from high birth and death rates to low birth and death rates.

Industrialization

Industrialization refers to the process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, leading to technological innovation and changes in society.

Food Production

The process of cultivating crops and livestock for human consumption, encompassing agriculture, aquaculture, and other cultivation methods.

Total Fertility Rate

The average number of children a woman is expected to have over her lifetime, given current birth rates.