The Big Mac index compares:
A. the cost of a Big Mac all over the world.
B. typical food costs, as food is the largest component of all consumption baskets.
C. the cost of a typical basket for consumers all over the world.
D. typical food and energy costs across different locations.
Answer: A
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Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she charges $7. What is the value of the consumer surplus enjoyed by her customers?
A) $39 B) $28 C) $11 D) $0
Given the consumption function C = $500 billion + 0.80Y, an increase in disposable income from $6,000 billion to $7,000 billion will cause consumption to increase by:
a. $800 billion. b. $1,000 billion. c. $1,300 billion. d. $1,500 billion. e. $1,800 billion.
A perpetuity is selling for $20,000 when the interest rate is 6%. What must the expected annual payment be?
a. $600. b. $1,200. c. $3,333. d. $6,000.
GATT's contribution to trade liberalization made possible the expansion of world trade in the second half of the twentieth century.
a. true b. false