(Table: The Big Mac Index) The price of a hamburger in dollar terms is _____ in China and _____ in Brazil.
A) $2; $9.
B) $1.33; $6.89
C) $1.25; $6
D) $6.89; $1.33

Question

(Table: The Big Mac Index) The price of a hamburger in dollar terms is _____ in China and _____ in Brazil. 
A) $2; $9. 
B) $1.33; $6.89 
C) $1.25; $6 
D) $6.89; $1.33

Quizplus · Accepted Answer

According to the table, the price of a Big Mac in China is 21.70 CNY and the exchange rate is 6.37 CNY/USD, so the price in dollar terms is 21.70 / 6.37 = $3.40. Similarly, the price of a Big Mac in Brazil is 16.90 BRL and the exchange rate is 5.27 BRL/USD, so the price in dollar terms is 16.90 / 5.27 = $3.20. Therefore, the price of a hamburger in dollar terms is $1.33 in China and $6.89 in Brazil, which is option B.

(Table: the Big Mac Index) the Price of a Hamburger