The Big Mac Index is commonly used to assess what aspect of a country?

The Big Mac Index is a tool developed by The Economist that provides insight into the relative value of currencies based on the price of a Big Mac hamburger in various countries. This index operates on the principle of purchasing power parity (PPP), which suggests that in the long run, exchange rates should adjust so that the same basket of goods—represented by a Big Mac—has the same price across different countries when expressed in a common currency.

By comparing the cost of a Big Mac in different countries, the index helps gauge the economic health of those countries. If a Big Mac is significantly cheaper in one country than in another, it may indicate that the country's currency is undervalued relative to the other. Conversely, if the price is higher, it might suggest an overvaluation. This analysis is an informal way to assess whether a country's currency is overvalued or undervalued, thus reflecting its economic situation, purchasing power, and inflation levels.

The other choices address different aspects that the Big Mac Index does not measure. Political stability, technological advancement, and societal happiness are not directly related to the pricing of goods or currency value and require different metrics or indicators to assess. Thus, the index specifically serves as a gauge of a country's economic health.