Multiple Choice
Which of the following statements best describes a limitation of the Big Mac Index?
A) Profit margins vary by the strength of competition, which affect 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.
Correct Answer:
Verified
Correct Answer:
Verified
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