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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:
While the Big Mac Index can give us information about how currency is valued, how a nation's economy is doing, and where we might travel cheaply, it does not tell us anything about the actual wages paid to McDonald's staff.
How Is The Big Mac Index Calculated?
Quiz
What is a benefit of having an undervalued currency to your country?
Undervaluing currencies intentionally could be good or bad. Do you have any thoughts?
Did you know?
How Does The Index Change Over Time?
Quiz
In 2019 which country had the second most expensive Big Mac in USD?
In 2019 Portugal had the second most expensive Big Mac in USD at $6. The United States was 6th, Venezuela was 8th, and Germany 9th.
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!
This Byte has been authored by
Kassie Dwarika
Director of Content Programs | Debate Coach