Consider the Distribution of Mathematics SAT Scores of Students in Honors

question 11

Multiple Choice

Consider the distribution of mathematics SAT scores of students in honors calculus at a liberal arts college. What would you expect the shape and variation of the distribution to be?

• A) Symmetric with little variation
• B) Symmetric with large variation
• C) Skewed right with large variation
• D) Skewed left with little variation

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Definitions:

X-inefficiency

A situation where a firm operates with higher than necessary costs due to a lack of competition or other inefficiencies, not achieving maximum productivity.

Principal-agent Problems

Conflicts of interest and challenges in monitoring that arise in relationships where one party (the agent) is supposed to act in the best interest of another (the principal).

Paradox of Voting

The situation where individual rationality leads to a collective decision that is worse for everyone involved.

Principal-agent Problems

Situations where there is a conflict of interest between a principal (such as an owner or shareholder) and an agent (such as a manager), due to diverging goals or asymmetrical information.