Economics

Anything related to economics, economic models, and economic theories
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Big Mac Index 2012

The Big Mac Index 2012 is a model that economists use to determine the relative value of currencies. The Big Mac Index 2012 provided on this page is a continuation of a long-term tradition of providing this basic well-known economic measure.

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Big Mac Index 2011

The Big Mac Index 2011 is a simple economic measure used to provide a view into the extent by which currencies are under or overvalued. The Big Mac Index 2011 provided on this page was calculated for the year 2011.

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Big Mac Index 2010

The Big Mac Index 2010 compares relative price levels in selected countries in year 2010. This page provides data for the Big Mac Index 2010. You can download Big Mac Index 2010 XLS Excel spreadsheet below.

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Big Mac Index 2009

The Big Mac index 2009 compares the price of a Big Mac sandwich across countries. The Big Mac 2009 index published by the Economist is a lighthearted guide to valuing currencies. The Big Mac index 2009 is not the best indicator of international comparison but it can provide some clues.

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Law of One Price

The Law of One Price says that identical goods should sell for the same price in two separate markets. This assumes no transportation costs and no differential taxes applied in the two markets.

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Predatory Pricing

In general, predatory pricing refers to anti-competitive activities taken by a company that is dominant in the market to protect its market share from new or existing competitors. Predatory pricing involves temporarily pricing a product low enough to end a competitive threat.

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Price Elasticity

Price elasticity, as it relates to economics, is a measure of the responsiveness of demand or supply to a change in price. Elasticity is a measure of responsiveness.

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Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services. It is the most commonly reported measure of the consumer price levels.

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Game Theory

Game Theory, or Theory of Games, is a branch of mathematical and economic analysis developed to study decision making in conflict situations. Game theory analyzes strategic interactions in which the outcome of one's choices depends upon the choices of others.

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Gross Domestic Product (GDP)

Gross Domestic Product (GDP) is the broadest measure of performance of an economy. It is defined as the output of goods and services produced by labor and property located in a country.

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