Which Measure of Central Tendency Is Used When You Calculate

question 6

Multiple Choice

Which measure of central tendency is used when you calculate the average of individual income and find many extreme scores?

• A)mean
• B)median
• C)mode
• D)standard error

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Definitions:

Utility Function

A mathematical representation in economics that captures the level of satisfaction or utility that consumers derive from consuming goods and services.

Desert Island

A secluded and uninhabited island, often used in scenarios and thought experiments in economics and ethics to explore human behavior in isolation.

Competitive Equilibrium

A market situation where supply equates demand, leaving no incentive for price changes, assuming all agents are price-takers.

Perfect Substitutes

Items that can replace each other without affecting the consumer's satisfaction negatively.