The Text Discusses Some of the Characteristics of the Payrolls

question 38

Multiple Choice

The text discusses some of the characteristics of the payrolls for two baseball teams. Which of the following correctly summarizes this comparison?

• A) The Yankees had the lower average salary
• B) The Red Sox had a lower median salary
• C) Both payrolls showed a negative skew
• D) The payroll for the Yankees showed a greater positive skew

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Definitions:

Long Run

The long run is a period in economics in which all factors of production and costs are variable, allowing full industry adjustment to changes.

Federal Funds Rate

The interest rate at which banks make overnight loans to one another

Money Demand

The desire to hold cash rather than other forms of assets due to its liquidity, determining how much money is needed for transactions, precautionary, and speculative motives.

Money Supply

The whole amount of cash, coins, and the funds in checking and savings accounts that make up the monetary resources within an economy at a specific period.