Consider the Five Number Summary of Hourly Wages ($) for a Sample

question 7

Multiple Choice

Consider the five number summary of hourly wages ($) for a sample of advertising / promotion managers. $$\begin{array} { | c | c | c | c | c | } \hline \text { Min } & \text { Q1 } & \text { Median } & \text { Q3 } & \text { Max } \\\hline 19.64 & 29.36 & 34.18 & 40.86 & 57.26 \\\hline\end{array}$$ Suppose there had been an error and that the lowest hourly wage was $15.50 instead of
$19) 64.This would result in

• A)an increase in the median.
• B)an increase in the standard deviation.
• C)a decrease in the range.
• D)a decrease in the IQR.
• E)an increase in the mean.

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Definitions:

MPC

Marginal Propensity to Consume, which indicates the fraction of additional income that a household is likely to spend on consumption.

Contractionary Fiscal Policy

Economic measures employed by a government to reduce its expenditures or increase taxes with the aim of slowing down an overheated economy.

Potential Output

The highest level of real gross domestic product (GDP) that can be sustained over the long term without increasing inflation, reflecting the maximum productive capacity of an economy.

Short-Run Aggregate Supply

The total production of goods and services in an economy at different price levels in the short-term, considering wages and resource prices as sticky.