Big mac index - Study guides, Class notes & Summaries

BMC Exam 2023/2024 Questions and Answers. 1. Which driver weakened the Swiss franc? (C): a) A surprise change in net export expectations b) A surprise change in interest rates expectations c) A surprise change in inflation expectations d) A surprise change in valuation expectations 2. How accurately do GDP portray the economy and why?: Inaccurately because the scope of GDP measurements can change. 3. Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in consumption of...

What are some national differences? correct answers ability to buy: average income per person, how far will a dollar take you? (BIG MAC INDEX) consumer needs consumer behavior What is an acronym that consumers need? correct answers MOA: motivation, opportunity, ability What is the informal sector? correct answers income not reported to authories What is the assumption and reality between economic development and informal sector activity? correct answers assumption: increased econo...

ECS2603 Assignment 4 Semester 2 2023.100% CORRECT questions, answers, workings and explanations. Question 1 Answer saved Marked out of 3.00 Flag question Question text Which of the following statements with regards to inflation are correct? Inflation is defined as a sustained increase in the general price level. This implies that for inflation to occur, it is sufficient for only the price of oil to increase. Inflation is a sustained increase in the general price level. This means that there is a...

Economic Indicators ESNP displays economic statistics of over 60 countries ECST S provides economic data with context and customizable graphs ECOW provides comprehensive data on economic indicators by country GP price chart used to identify trends and market patterns WECO shows economic calendars, events, and releases by country ECOS provides full details behind economist estimates for calendar releases ECFC displays economic forecasts for ...

Simple indexing -ANSWER Common analytic measure to improve performance. Compares current data with data during a base period. (Price / Price during "Base Period") x 100 i.e. Big Mac was 1.60 in 1968 which is base period. what is index for 2014 if price was 4.80 then? (4.80 / 1.60) * 100 = 300 (means price is 3x greater than base period) Used to identify price fluctuations of supplies, materials, products, etc. Weighted Index -ANSWER assign a weight to allow for significant dif...

what is GDP an indicator of? - correct answer the standard of living in a country what is the standard measure of economic growth? - correct answer rate of change of GDP what is the difference between total and per capita GDP? - correct answer total is the overall GDP for a country and per capita is total GDP/population when does GDP per capita grow? - correct answer when national output grows faster than the opoulation what is the difference between real and nominal GDP? - corr...

A trade _____ is an economic condition in which a nation imports more than it exports. correct answers deficit The _____ theory viewed international trade as a zero-sum game. correct answers mercantilism Which of the following is a classical theory of international trade? correct answers Comparative advantage theory The _____ theory is based on the assumption that the wealth of the world is fixed. correct answers mercantilism Factor endowment is _____. correct answers the extent to w...

In 2015, an accounting gimmick gave Ireland a 26% growth rate in GDP. What does this event reflect about the nature of GDP? If the measurement of economic activity evolves, GDP can change. Here is a chart showing both nominal GDP growth and real GDP growth for a country. Which of the following can be a true statement at the time the chart was captured? The country has inflation. The top line is nominal growth and the bottom line is real growth. Which of the following lines is the...

A drop in which of the following measures would typically send a government bond price down? - Creditworthiness A luxury cell phone maker has a high fixed-cost base and a lot of debt. Which stakeholder in the company would you rather be? - A shareholder in a booming economy. A rise in which of the following inputs will increase an absolute valuation? - Earnings estimated According to the Big Mac index screen, which of the following four countries' currency is the most undervalued? - Mexic...

Simple indexing CORRECT ANSWER Common analytic measure to improve performance. Compares current data with data during a base period. (Price / Price during "Base Period") x 100 i.e. Big Mac was 1.60 in 1968 which is base period. what is index for 2014 if price was 4.80 then? (4.80 / 1.60) * 100 = 300 (means price is 3x greater than base period) Used to identify price fluctuations of supplies, materials, products, etc. Weighted Index CORRECT ANSWER assign a weight to allow for significant differ...