According to the table, the price of Big Macs converted to U.S. dollars varies widely around the world. This shows that Big Mac pricing does NOT follow the theory of
A) Ricardian equivalence. B) purchasing power parity.
C) supply and demand. D) real versus nominal prices.
Question 2
Which of the following would most likely cause a country's production possibilities set to shift outward at every point along the frontier?
A) a decrease in idle capital
B) a decrease in unemployment
C) a general technological advance that affects all sectors of the economy
D) a technological advance in only one sector of the economy
E) none of the above
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