The Big Mac Index
http://www.econedlink.org/lessons/index.cfm?lesson=EM156&page=teacher
A lesson plan for grades 10–12 Social Studies
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How fast can you say… “two all beef patties special sauce lettuce cheese pickles onions on a sesameseed bun?” This question was asked of millions of TV viewers in the now famous 1970s McDonald’s television commercial promoting the Big Mac.
While most people see the Big Mac as “twoallbeefpattiesspecialsaucelettuce
cheesepicklesonionsonasesameseedbun,” economists also see the sandwich as a consumer good that is sold at over 25,000 McDonald’s restaurants in 116 countries around the world. Because of its popularity, the Big Mac allows economists to make (admittedly unscientific) comparisons of exchange rates and relative prices in countries around the globe. This EconomicsMinute looks at how the “Big Mac Index” helps explain variation in exchange rates and prices.
North Carolina Curriculum Alignment
Social Studies (2003)
Grade 10
- Goal 8: The learner will analyze features of the economic system of the United States.
- Objective 8.04: Illustrate how supply and demand affects prices.
- Goal 9: The learner will analyze factors influencing the United States economy.
- Objective 9.05: Explain the impact on the United States economy of international trade and global products.
- Objective 9.06: Investigate the ways that domestic and international economies are interdependent.
Grade 11–12 — Economics
- Goal 2: The learner will analyze the role that supply and demand, prices, and profits play in determining production and distribution in a market economy.
- Objective 2.03: Describe the role of producers and consumers in determining the equilibrium price.
