The Big Mac Index.
In: Economics
It’s a way of comparing purchasing power in different countries because it includes so many factors.
A Big Mac requires ingredients, labour, equipment, and land to be factored into its cost. Since McDonalds aims for a Big Mac to come to the same level of quality in different parts of the world, it is a good indicator of how much buying power a currency has.
For example, in the Philippines, you can get a Big Mac for P140. That is equal to $2.76 USD. In the US, a Big Mac costs $3.99.
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