According to the Big Mac index
A) Big Mac's must be priced higher in China than in Canada.
B) the price of a Big Mac is used to determine if a given currency is overvalued or undervalued.
C) Big Mac's are better than Mom's homemade hamburgers.
D) Big Mac's are always cheaper in France than they are in Canada.
E) Big Mac's are priced the same all over the world.

Question

Quizplus · Accepted Answer

The Big Mac index is an informal way of determining if a currency is overvalued or undervalued based on the price of a Big Mac in different countries. The idea is that if the price of a Big Mac is higher in one country than another, then the currency in the country with the higher price is overvalued compared to the other currency. Therefore, B is the correct answer.

According to the Big Mac Index