If Purchasing-Power Parity Held, If a Big Mac Costs $2

question 17

Multiple Choice

If purchasing-power parity held, if a Big Mac costs $2 in the United States, and if 10 Mexican pesos trade for $1 dollar, then a Big Mac in Cancun, Mexico, should cost:

• A) 2 pesos.
• B) 5 pesos.
• C) 10 pesos.
• D) 20 pesos.

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Definitions:

Concurrent Federal Jurisdiction

The situation where both federal and state courts have the authority to hear and decide cases on the same issues.

Admiralty

Relating to maritime law, which governs nautical issues and private maritime disputes.

Treaties

Formal agreements between two or more sovereign states governed by international law.

Antitrust

Legislation enacted to increase competition in the marketplace by preventing monopolies, anti-competitive practices, and other unfair business tactics.