The Big Mac index is a simple measure that indicates varying costs of living in different countries. The index compares the price of a Big Mac in different countries to show the differences in purchasing power of currencies. While it is often used by economists, it is not directly related to the size of the Big Mac or used by McDonald's for expansion decisions.

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The Big Mac Index

Question 108

Multiple Choice

The Big Mac index:

A) tracks the size of Big Macs in different countries.
B) is a simple measure that indicates varying costs of living in different countries.
C) is a tool used by McDonald's when making decisions about where to expand operations.
D) All of these are true.

Correct Answer: