(Table: The Big Mac Index) The PPP exchange rate for China should be _____ yuan.
A) 4
B) 3.1
C) 5
D) 32.2

Name: (Table: The Big Mac Index) The PPP exchange rate for China should be _____ yuan. A) 4 B) 3.1 C) 5 D) 32.2
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Question

(Table: The Big Mac Index) The PPP exchange rate for China should be _____ yuan. 
A) 4 
B) 3.1 
C) 5 
D) 32.2

Quizplus · Accepted Answer

According to the table, the price of a Big Mac in China is 21 yuan and in the US it is $5.67. So, the exchange rate would be 21/5.67 = 3.7 yuan per USD. The PPP exchange rate for China should ideally be around 3.7 yuan per USD. Option B is the closest value to this, as it is 3.1.

(Table: the Big Mac Index) the PPP Exchange Rate for China