Byte Author Uploaded Image

Looking forward to traveling again? Did you know you could use McDonald's Big Mac to find low-cost places to travel?

What Is The Big Mac Index?

  • Goods should cost the same in all countries... but they don't

  • The Big Mac Index shows if currencies are under or overvalued

  • Exchange rates can change over time

  • The index gives a rough idea of prices in other countries

  • It's a silly measure to compare and learn about basic economic principles

Quiz

The Big Mac index does NOT provide information on:

How Is The Big Mac Index Calculated?

Quiz

What is a benefit of having an undervalued currency to your country?

How Does The Index Change Over Time?

Quiz

In 2019 which country had the second most expensive Big Mac in USD?

Are There Alternative Indexes?

There are variations using Starbucks coffee. Using non-perishable goods is usually more accurate like Ikea’s Billy Bookcases or Apple's iPads seen in the video below:

Take Action

The next time you go for a burger, share what you've learned about the Big Mac index with a friend!

License:

Your feedback matters to us.

This Byte helped me better understand the topic.

Get support to take action on this Byte