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  3. The Big Mac index is built on the idea of purchasing-power parity, the theory that in the long run currencies will converge unti

The Big Mac index is built on the idea of purchasing-power parity, the theory that in the long run currencies will converge unti

admin2018-06-28  60
问题    The Big Mac index is built on the idea of purchasing-power parity, the theory that in the long run currencies will converge until the same amount of money buys the same amount of goods and services in every country. A Big Mac currently costs $ 5.06 in America but just 10. 75 lira ($ 2.75) in Turkey , implying that the lira is undervalued.
   However, other currencies are even cheaper. In Big Mac terms, the Mexican peso is undervalued by 55. 9% against the greenback. Last week it also hit a record low as Mr Trump restated some of his campaign threats against Mexico. The peso has lost a tenth of its value against the dollar since November. Of big countries, only Russia offers a cheaper Big Mac, in dollar terms, even though the rouble has strengthened over the past year.
   The euro zone is also prey to political uncertainty. Elections are scheduled this year in the Netherlands, France and Germany, and possible in Italy. The euro recently fell to its lowest level since 2003. Britain’s Brexit vote has had an even bigger effect on the pound, which has fallen to $ 1. 21, a 31-year low. According to the Big Mac index, the euro and the pound are undervalued against the dollar by 19.7% and 26. 3%, respectively.
   One of the drawbacks of the Big Mac index is that it takes no account of labour costs. It should surprise no one that a Big Mac costs less in Shanghai than it does in San Francisco, since Chinese workers earn far less than their American counterparts. So in a slightly more sophisticated version of the Big Mac index, we take account of a country’s average income.
   Historically, this adjustment has tended to raise currencies’ valuations against the dollar, so emerging-market currencies tend to look more reasonably priced. The Chinese yuan, for example, is 44% undervalued against the dollar according to our baseline Big Mac index, but only 7% according to the adjusted one. The deluxe Big Mac index has typically made rich-world currencies look more expensive. Because western Europeans have higher costs of living and lower incomes than Americans, the euro has traded at around a 25% premium against the dollar in income-adjusted burger terms since the euro’s inception.
   But what once seemed to be a constant truth of burgernomics is true no longer. So strong is the dollar that even the adjusted Big Mac index finds the euro undervalued. The dollar is now trading at a 14-year high in trade-weighted terms. Emerging-world economies may struggle to pay off dollar-denominated debts. American firms may find themselves at a disadvantage against foreign competition. And American tourists will get more burgers for their buck in Europe.
Which of the following is the best title for the text?
选项 A、Big Mac Index: the Undervalued Currencies
B、Big Mac Index: the Underestimated Dollars
C、Big Mac Index: the Declining Economies
D、Big Mac Index; Dollars VS Euros
答案A
解析 主旨题。[A]Big Mac Index：the Undervalued Currencies“巨无霸指数：被低估的货币”；[B]Big Mac Index：the Underestimated Dollars“巨无霸指数：被低估的美元”；[C]Big Mac Index：the Declining Economies“巨无霸指数：衰退的经济”；[D]Big Mac Index：Dollars VS Euros“巨无霸指数：美元对欧元”。文章首段尾句提到the lira is undervalued；第二段首句提到However，other currencies are even cheaper．In Big Mac terms，the Mexican peso is undervalued…下文反复提到各种货币价值被低估，故[A]项符合文章主旨大意。[B]错在underestimated dollars，文章讨论各种货币价值被低估，而美元很强势；[C]错在declining economies，文章强调货币价值被低估，而不是经济衰退；[D]过于片面，文章第三段、第五段和第六段都提到欧元与美元的比较，因此该项可以排除。综上，本题答案为[A]。
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