Q: I recently heard of a rather humorous economic index called the Big Mac index. What does it say about the economy? Who issues it?
—Lance DeLoach, Thomaston
A: The Big Mac index, which was invented by the Economist in 1986, uses Big Mac prices around the world to informally determine if world currencies are overvalued or undervalued compared with the dollar.
“For example, the average price of a Big Mac in America in July 2014 was $4.80; in China it was only $2.73 at market exchange rates. So the ‘raw’ Big Mac index says that the yuan was undervalued by 43 percent at that time,” the Economist states on its website.
The Big Mac index isn’t an official gauge of “currency misalignment,” but has become universally accepted. More information is at www.economist.com/content/big-mac-index.
Q: What was the outcome of the lawsuit filed by a former NBA player against the Tavern at Phipps?
—Elizabeth Franklin, Atlanta
A: A federal jury, in September 2011, found that the Tavern at Phipps didn't violate the civil rights of Joe Barry Carroll, a former NBA player, and Joseph Shaw. Carroll and Shaw, who are black, filed a $3 million lawsuit after an August 2006 incident in which they were escorted from the establishment after refusing to give up their seats to two white women. The defense argued that the restaurant had a long-standing "good manners" policy in which men are expected to give up their seat to women when the bar is packed. Nine members of the jury were white and three were black.
Andy Johnston wrote this column. Do you have a question about the news? We’ll try to get the answer. Call 404-222-2002 or email q&a@ajc.com (include name, phone and city).
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