That's how you use the Big Mac Index: you look at how much a Big Mac costs in other countries and compare it to how much it costs in the US, which is your starting point. If a Big Mac costs more in a foreign country than it does in US dollars, that means the local currency is overvalued, which means that people there may have a better standard of living. If, on the other hand, the Big Mac costs less in US dollars, it means that the currency is undervalued and that people may not be able to afford as high of a standard of living. The Big Mac Index can also give you information about pay levels. If the price of a Big Mac is much lower in another country than in the US, it could mean that wages are lower in that country overall. If, on the other hand, the Big Mac costs more, it might mean that wages are higher