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Big Mac Index

Total questions: 7

Worksheet time: 4mins

Name
Class
Date
1.

What is the Big Mac Index used to compare?

a)

The sizes of Big Macs

b)

How tasty the Big Mac is in different countries

c)

The number of ingredients in a Big Mac

d)

The prices of Big Macs in different countries

2.

Why was the Big Mac Index created?

a)

To search for the best Big Mac recipe in the world

b)

To understand if a country's currency is strong or weak

c)

To find if McDonalds is more popular than Starbucks or KFC

d)

To encourage people to eat more Big Macs

3.

If the price of a Big Mac is higher in Country X than the price of a Big Mac in Country Y

a)

it means that the Big Macs in Country X are bigger

b)

it means that the Big Macs in Country X are smaller

c)

it means that the Big Macs in Country X taste better

d)

it means that the currency of Country X is weaker

4.

Why does a higher Big Mac price in Country X indicate a weaker currency?

a)

Because it takes more of the country's money to buy the same product.

b)

Because people in that country prefer expensive food.

c)

Because the Big Mac is bigger in that country.

d)

Because the Big Mac ingredients are of higher quality.

5.

What does an imported good mean

a)

A product that Country X has sold

b)

A product that Country X has bought

c)

A product that Country X hides from Country Y

d)

A product only available to citizens of Country X

6.

Why does it matter if country X has a weaker currency?

a)

Other countries will exclude Country X

b)

Country X may be able to save more money

c)

The cost of imported goods in Country X will be affected

d)

Country X will become more popular

7.

Is the Big Mac Index an important factor for trade policies

a)

No

b)

Yes