An international agency uses the prices of iPads in different countries to compute the exchange rate between the currencies of these countries.Which of the following measures follows a similar approach?
A) The Big Mac index
B) The GDP deflator
C) The midcap index
D) The Human Development Index

Question

Quizplus · Accepted Answer

The Big Mac index is a measure that uses the prices of Big Macs (a popular fast food item) in different countries to determine the relative value of different currencies. This approach is similar to using the prices of iPads to compute exchange rates, as both measures use a commonly available product to compare the purchasing power of different currencies. The other options listed do not use comparable approaches to measure currency values or economic performance.

An International Agency Uses the Prices of IPads in Different