The Economist's Big Mac Index measures _______________________.
A) Purchasing Power Parity
B) exchange rate fluctuations
C) world economic health
D) the relative price of food in various countries

Question

Quizplus · Accepted Answer

The Big Mac Index is a tool used by The Economist to measure purchasing power parity (PPP) between different countries. It does this by comparing the price of a Big Mac burger in different countries, as the burger is sold in over 120 countries and is produced with standardized ingredients and production methods, making it a good indicator of the cost of living in different places.

The Economist's Big Mac Index Measures _______________________