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Purchasing power parity: Quiz


Question 1: For example, if the value of the Mexican peso falls by half compared to the U.S. dollar, the Mexican ________ measured in dollars will also halve.
EconomicsGross domestic productEconomyJEL classification codes

Question 2: The purchasing power rate equalizes the purchasing power of different ________ in their home countries for a given basket of goods.
CurrencyCyprusISO 4217Coin

Question 3: The more a product falls into category 1 the further its price will be from the currency ________.
Exchange rateForeign exchange reservesFixed exchange rateForeign exchange market

Question 4: For instance, a Big Mac in downtown Chicago is likely to be priced higher than one in ________.

Question 5: PPP calculations are often used to measure ________.
CanadaBasic needsPoverty thresholdBhutan

Question 6: the ________ is not a mainstream 'cheap' meal as it is in the west but a luxury import for the middle classes and foreigners.
McDonald's advertisingBig N' TastyMcDonald's productsBig Mac

Question 7: (A U.S. dollar exchanged and spent in ________ will buy more haircuts than a dollar spent in the United States).
Lok SabhaIndia and the Non-Aligned MovementResearch and Analysis WingIndia

Question 8: If a Big Mac costs ________4 in the United States and GBP£3 in the United Kingdom, the PPP exchange rate would be £3 for $4.
United States dollarLouisianaFederal Reserve SystemHawaii

Question 9: It is necessary to compare the cost of baskets of goods and services using a ________.
InflationConsumer price indexGDP deflatorPrice index

Question 10: An example of one measure of PPP is the Big Mac Index popularized by The Economist, which looks at the prices of a ________ burger in McDonald's restaurants in different countries.
Big N' TastyBig MacMcDonald's productsMcDonald's advertising


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