Suppose a McDonald's Big Mac costs 29 pesos in Mexico, and the exchange rate between the peso and the Canadian dollar is 10 pesos per Canadian dollar. According to purchasing power parity, a Canadian Big Mac should cost:
A. 290 Canadian dollars.
B. 2.90 Canadian dollars.
C. 5.80 Canadian dollars.
D. 0.34 Canadian dollars.
Answer: B
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Refer to Table 11.1. At the equilibrium level of output, y*, what is the level of imports?
A) 266.25 B) 356.25 C) 1065.00 D) 1425.00
The degree to which an economic system approaches a market economy depends on the degree to which
A. economic choices are made through the free interaction of buyers and sellers in the marketplace. B. there are monopolies in the marketplace. C. people have a high standard of living. D. advanced technology is used.
Suppose the MRP of a firm's 12 th worker is $22 and the worker's marginal wage cost is $16. We can say with certainty that the firm:
A. is hiring labor in a competitive labor market at a wage rate of $16. B. is hiring labor in a monopsonistic labor market. C. will find it profitable to hire fewer workers. D. will find it profitable to hire more workers.
Under the Social Security program currently in existence
A. benefits are based on need. B. benefits are provided to everyone who contributed to the system EXCEPT those under private retirement programs that provide an annual income in excess of $13,500. C. benefits are determined by whether or not one contributed to the system. D. benefits are guaranteed to be no lower for future retirees than for current retirees.