The Mean Amount Spent by a Family of Four on Food

question 131

Multiple Choice

The mean amount spent by a family of four on food per month is $500 with a standard deviation of
$75. Assuming that the food costs are normally distributed, what is the probability that a family
spends less than $410 per month?

• A)0.2158
• B)0.8750
• C)0.0362
• D)0.1151

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Definitions:

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain constant.

Subsistence

The minimum level of essentials (such as food and shelter) necessary for an individual to survive.

Catch-Up Effect

The theory suggesting that less developed countries can grow at a faster rate than developed countries because they can adopt existing technologies and best practices.