28 November 2024

Bargain burgers, cheap currencies

Multiple-choice questions. In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please reread the article before attempting the questions again.

  1. Which publication created the Big Mac index?

  2. According to the most recent survey, where is a Big Mac most overvalued?

  3. According to the most recent survey, where is a Big Mac most undervalued?

  4. Which currency example in particular has demonstrated the limited predictive power of the Big Mac index?

  5. Which of the following statements is true? Statement 1, in the US, Democrat politicians are concerned that some countries artificially suppress their currencies to gain an unfair advantage over US firms. Statement 2, in the US, Republican politicians are concerned that some countries artificially suppress their currencies to gain an unfair advantage over US firms

  6. What does BEER stand for?

  7. Why might the BEER model be considered disadvantageous?

  8. In what area might the BEER model be most useful?

  9. Which event in the 1990s forced economists to adjust BEER models?

  10. Which currency did the BEER model correctly predict would appreciate as the global value of commodity exports rose in the 2000s?

1 unit