If the price of Big Mac is $3.61 in the U.S. and 3.405 € in France, and PPP holds, what is the value of the euro in dollars that is implied by The Economist magazine's Big Mac index?
A) $1.060
B) $0.943
C) $1.943
D) None of the above.
A
You might also like to view...
Which of the following statements is true?
A) Marginal analysis is a key component in the process of optimization in levels. B) Only direct costs are considered when the net benefits of the alternatives are calculated. C) In both the techniques of optimization, all costs have to be converted to the same unit of measurement. D) Optimization in levels calculates the change in net benefits when a person switches from one alternative to another.
Demand shows
a. the various quantities people are willing and able to buy at various prices, ceteris paribus. b. the various quantities people are able and willing to buy at various prices. c. the various prices people face when buying. d. how much people buy at one specific price.
Cartels usually succumb to divisive forces caused by
a. limited information. b. members cheating by giving secret discounts. c. entry by new rivals seeking profits. d. insufficient profits compared to independent operations.
It is common knowledge that many U.S. national parks have become overused. One possible solution to this problem is to
a. increase entrance fees. b. decrease camping permit fees. c. require all visitors to register upon entering the park. d. sell the land that the parks currently occupy.