The following table lists 2012 GDP per capita for four countries. The data are given in the national currencies of the countries. It also lists the price of a Big Mac in local currency in each country in 2012. The price of a Big Mac in the United States in 2012 was $4.10. Using the Big Mac as a representative commodity common to the countries, calculate the purchasing power parity (PPP)-adjustment factor for each country, and then the PPP level of GDP per capita in each country. (Round your responses for the PPP-adjustment factor to three decimal places and round PPP GDP per capita to the nearest integer.) 2012 GDP per Capita 2012 Big Mac Price Purchasing Power Parity (PPP)- Adjustment Factor PPP Level of GDP per Capita Norway (krone) Poland (zloty) 579,162 41 krone 41,398 9.1 zloty Turkey (Turkish lira) 19,580 6.6 Turkish lira United Kingdom (British pound) 24,740 2.49 pounds
The following table lists 2012 GDP per capita for four countries. The data are given in the national currencies of the countries. It also lists the price of a Big Mac in local currency in each country in 2012. The price of a Big Mac in the United States in 2012 was $4.10. Using the Big Mac as a representative commodity common to the countries, calculate the purchasing power parity (PPP)-adjustment factor for each country, and then the PPP level of GDP per capita in each country. (Round your responses for the PPP-adjustment factor to three decimal places and round PPP GDP per capita to the nearest integer.) 2012 GDP per Capita 2012 Big Mac Price Purchasing Power Parity (PPP)- Adjustment Factor PPP Level of GDP per Capita Norway (krone) Poland (zloty) 579,162 41 krone 41,398 9.1 zloty Turkey (Turkish lira) 19,580 6.6 Turkish lira United Kingdom (British pound) 24,740 2.49 pounds
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following table lists 2012 GDP per capita for four countries. The data are given in the national currencies of the countries. It also lists the price of a Big Mac in local currency in each
country in 2012. The price of a Big Mac in the United States in 2012 was $4.10.
Using the Big Mac as a representative commodity common to the countries, calculate the purchasing power parity (PPP)-adjustment factor for each country, and then the PPP level of
GDP per capita in each country. (Round your responses for the PPP-adjustment factor to three decimal places and round PPP GDP per capita to the nearest integer.)
2012 GDP
per Capita
2012 Big Mac
Price
Purchasing Power
Parity (PPP)-
Adjustment Factor
PPP Level of
GDP per Capita
Norway (krone)
Poland (zloty)
579,162
41 krone
41,398
9.1 zloty
Turkey (Turkish lira)
19,580
6.6 Turkish lira
United Kingdom (British pound)
24,740
2.49 pounds
AFARI
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