Which of the following statements BEST describes a limitation of the Big Mac Index?
A) Profit margins vary by the strength of competition, which affects relative prices.
B) The theory of PPP incorrectly assumes that there are barriers to trade.
C) The Big Mac represents all possible commodities and services.
D) Taxes have no effect on Big Mac prices.
A) Profit margins vary by the strength of competition, which affects relative prices.
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Which of the following is true of a prisoners' dilemma game?
A) A prisoners' dilemma game has multiple Nash equilibria. B) There is no dominant strategy equilibrium in a prisoners' dilemma game. C) The dominant strategy equilibrium in a prisoners' dilemma game is also the Nash equilibrium. D) The prisoners' dilemma game is an extensive-form game.
The policy ineffectiveness proposition of the new classical model suggests that ________
A) unanticipated policy has no effect on the business cycle B) anticipated policy can have an effect on the business cycle C) anticipated policy has no effect on the business cycle D) legislative policy initiatives have little effect if the executive branch of government is in the hands of another political party