20100115 The Big Mac Index (1)

The Big Mac Index

How much do you pay for a hamburger?

In 1986, Pam Woodall, an editor for The Economist magazine, introduced the Big Mac Index as a fun way of demonstrating the theory of purchasing power parity (PPP). By tracking the prices of McDonald's Big Mac sandwiches around the world, the index has become a handy and frequently cited example of how exchange rates work. An old concept from international economics, PPP at its core is a method for calculating a "correct" exchange rate between two currencies. The idea is that goods and services should sell at the same prices no matter what country a person is in.

Basically, a "correct" exchange rate would be one that makes products the same price when measured in the same currency. The US$3.54 you spend on a Big Mac in America, for example, should buy the same sandwich in Hong Kong for that same US$3.54 in Hong Kong currency. In the real world, however, exchange rates frequently do not reflect the "correct" rate in terms of product price. For example, a Big Mac in Hong Kong actually costs about US$1.72 while the same sandwich in Norway will run
you a whopping US$5.79.



index n. 指數
eg: The Dow Jones Index rose 15 points todays.
=> 道瓊指數今天漲了15點。
eg: The Nikkei Index plunged 200 points yesterday.
日經指數左天大跌了200點。
eg: The Consumer Price Index is announced periodically.

exchange rate 兌換貨幣的匯率
eg: What's the current exchange rate between the dollar and the euro?
eg: As an import company, we have to keep an eye on the exchange rates.

currency n. 通貨/貨幣

whopping adj. 極大的/龐大的
=> extremely large
=> 後面可接數字，表示這個數字是很驚人的
eg: He told a whopping lie and everyone believed it.
eg: The unemployment rate rose by a whopping 1 percent last month.


//== Chat room ==//

core n. 核心/精髓/要義
=> the most important/basic of something

core subjects 核心科目/必修科目
required courses 必修課(入門課程)
electives 選修課(中高級課程)
Math class is compulsory(必修的) for all students, but French and art are optional(選修的).


to the core 徹底的
eg: I'm shaking to the core.
eg: Ashley is an American to the core.
=> Ashley 是道道地地的美國人

rotten to the core 爛透了
eg: The political party is rotten to the core and is unlikely to get many votes in the next election.
eg: He is rotten to the core.
=> 他簡直是壞透了


//== Grammar on the Go ==//

While the same sandwich in Norway will run you a whopping S5.79USD
...the same sandwich in Norway will cost you a whopping $5.79USD

run
=> move quickly on your feet from one place to another
eg: Please don't run in the hallway.

run
= here it means "cost"

eg: The flowers for their wedding ran the bride and groom over $1,000.
eg: Wendy wants to invite all her friends to a party on a cruise ship, but it will run her $150USD per guest.