question archive Let's assume the US dollar/Mexican peso exchange rate is 1/12 pesos and the price of a Big Mac in the United States is $3
Let's assume the US dollar/Mexican peso exchange rate is 1/12 pesos and the price of a Big Mac in the United States is $3
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Let's assume the US dollar/Mexican peso exchange rate is 1/12 pesos and the price of a Big Mac in the United States is $3. Mexico's GDP is 16,696 billion pesos, and its population is 135 million people.
1. Assuming the countries have purchasing power parity, the price of a Big Mac in Mexico is _____ pesos. (Round your answer to the nearest integer)
2. Mexican income per capita is _____ thousand pesos. (Round your response to the nearest integer)
3. Mexican income per capita in US dollars is _____ thousand USD. (Round your response to the nearest integer)
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Answer:
1. Big Mac in US = $3, Exchange Rate $1 = 12 Pesos, Big Mac in Mexico = 12*3 = 36 Pesos
2. Income Per Capita = GDP/Population = 16696000/135 = 123674.1 Pesos
3 Income Per Capita in $US = 123674.1/12 = $10306.2
