Everyone knows when it comes to prices, you have to know supply, demand...and Big Macs?

The Big Mac Index offers a relatable and semi-humorous way to grasp the global economics tied to everyday decisions, like buying a burger. By comparing the cost of a Big Mac across different countries over time, students can get a taste of currency valuation and purchasing power—concepts that are important in things like planning budgets and understanding international travel costs. It's a fun way to show that economic principles aren't just abstract theories but part of the fabric of our daily lives—even in the price of fast food.

Questions:

• What is the Big Mac Index, and what is it intended to illustrate?
• How has the price of a Big Mac changed in the United States from 2000 to 2023? What does this tell us about inflation in the U.S.?
• Select two countries with significantly different Big Mac prices. Discuss the possible economic, political, and social reasons for this disparity.
• If you were traveling abroad, how would you use the Big Mac Index to determine the value of your money in another country?

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Be sure to check out NGPF's Behavioral Economics unit for more insight into the psychology behind our financial decisions.

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Looking for more interactive resources? Be sure to check out the NGPF Interactive Library. 

About the Author

Ryan Wood

Ryan grew up with and maintains a love for learning. He graduated from the University of Wisconsin-Green Bay with a degree in Business Administration and worked in sports marketing for a number of years. After living in Texas, Colorado, Tennessee, and Minnesota, the call of education eventually brought Ryan back to his home state of Wisconsin where he was a Business and Marketing teacher for three years. In his free time he likes to spend time with his wife and daughter, play basketball, read, and go fishing. Now with NGPF, Ryan is excited to help teachers lead the most important course their students will ever take.