The Mean Salary at Your Company Is $100,000 Per Year,but

question 224

Multiple Choice

The mean salary at your company is $100,000 per year,but most workers are earning minimum wage.How can the mean be so high?​

• A)The median salary is much higher than the mean salary.
• B)​The mean salary does not include the president's salary.
• C)​The salaries at your company fit the normal distribution.
• D)​A few people are earning extremely high salaries.

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Definitions:

Production Possibilities Curve

A graphical representation that shows the various combinations of two products that an economy can produce using all its resources efficiently.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, due to the scale of operation increasing.

Opportunity Cost

The abandonment of potential improvements from other possibilities once one choice is made.

Absolute Advantage

A country's ability to produce a good more efficiently than other countries, requiring fewer resources for the same output.