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2 years ago

What are the disadvantages of using big macs to measure purchasing power parity? (check all that apply.)?

2 answers:

5 0

The Economist magazine in the year 1986, proposed a new index as an alternate measure for exchange rate. This new index studies the price of a Big Mac and compares them to calculate exchange rates. It was argued that McDonald was already established in many countries. Therefore, it can be used as a yardstick to compare the purchasing power of various countries. Hence, serves as a measure of purchasing power party. The main problem with this as that not everybody’s consumption basket includes Bug Macs. Rather, a fraction of the total population consumes it. Instead of representing a basket of diverse goods, it represents a basket consisting of a single commodity. As a result, Big Mac index will not reflect true cost of living.

AnnZ [28]2 years ago

4 0

<span>While a familiar benchmark, the number of people who know of Big Macs are not comparable to those who buy them regularly. Thus, comparing a not-as-commonly purchased product with living essentials (such as staple foods and toiletries) provides a level of disconnect that hinders the very comparison it is intended to support.</span>

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olga_2 [115]

Answer: The correct answer is a PowerPoint presentation.

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2 years ago

In an organization, the functional level is made up of ________, which provide specific and focused strategic direction.

never [62]

The functional level of an organization is made up of departments, which provide specific and focused strategic direction for the company to achieve its objectives and goals set out in the planning.

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It provides support for the strategy developed in the organization, with the general objective of generating greater competitiveness for the company, effectively maintaining the corporate performance of each integrated system.

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The correct answer is:

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1 year ago

The advantages of litigation are that it is private, quicker and less costly than alternative dispute resolution. True False

Aneli [31]

False

Explanation:

With litigation issues they don't get private, because every one can go to the court and will have knowledge of the dispute resolution process.

It is not always quicker also, it sometimes could take even more than a year before there will be a ruling over the dispute by the court. Mostly appealing to the court by both parties makes the resolution longer.

It is costly also, in terms of both time and money, a lawyer will have to be hired if the firm or individual doesn't have one and up and down transportation to and fro the court is all costly.

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2 years ago

Jacob went to the grocery store to buy breakfast cereal. He picked up a few cereal boxes to look up their ingredients. However,

andriy [413]

Answer: The correct answer is "c. bounded rationality".

Explanation: Jacob's decision is an example of bounded rationality, because according to the theory of limited rationality, people make decisions only partially in a rational way because of our cognitive, information and time constraints.

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3 years ago

Doubling the circumference of an oil pipeline more than doubles the volume of oil that can be pumped through. This strategy is c

Alika [10]

Answer:

Economies of scale

Explanation:

Economies of scale is described as the cost benefit or advantage which is experienced through the firm, when it rises the output level. Under economies of scale, the fixed costs did not vary or change with decreases or increases in the units of the production volume and the variable costs are dependent with rise in the output.

So, in this case, when the circumference is doubled of the oil pipeline, more than the volume doubles. This technique is selected through the large firms or business as it will result in the economies of scale.

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3 years ago

What are the disadvantages of using big macs to measure purchasing power​ parity? ​(check all that apply.​)?

What are the disadvantages of using big macs to measure purchasing power parity? (check all that apply.)?