The Following Is a List of Annual Salaries (In Dollars)

question 7

Multiple Choice

The following is a list of annual salaries (in dollars) for a group of mid-level managers in a large company. $\begin{array} { r r r r } \hline 98,000 & 115,000 & 75,000 & 88,000 \\65,000 & 107,000 & 72,000 & 71,000 \\88,000 & 57,000 & 88,000 & 73,000 \\97,000 & 85,000 & 87,000 & 73,000 \\93,000 & 88,000 & 71,000 & 65,000 \\87,000 & 83,000 & 75,000 & 44,000 \\81,000 & 76,000 & 81,000 & 89,000 \\\hline\end{array}$
-What is the standard deviation of the salaries (rounded to a whole number) ?

• A)81,000
• B)81,111
• C)88,000
• D)14,701

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Definitions:

Producer Surplus

The variance between the minimum amount producers are prepared to take for a product and the actual payment they get.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between multiple options.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved, often due to market distortions like taxes or subsidies.

Tax

A compulsory monetary fee or different form of levy placed on a taxpayer by a government body to finance government expenses and various public outlays.