Suppose that 40 percent of the voting population wish to spent Rs1,000 for artwork in City Hall, 25 percent wish to spent Rs20,000 and 35 percent wish to spend Rs 22,000 What is the median preferred outcome, the average preferred outcome and the modal preferred outcome ?
Correct answer: C. Rs20,000; Rs13,100; Rs1,000
- A. Rs20,000; Rs20,000; Rs22,000
- B. Rs1,000; Rs14,333; Rs1,000
- C. Rs20,000; Rs13,100; Rs1,000
- D. Rs1,000; Rs20,000; Rs22,000
Explanation
The median is Rs20,000 because the cumulative share first exceeds 50% at that preference, while the weighted average is Rs13,100. Rs1,000 is the mode because it is preferred by the largest group, 40%.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
Which of the following is not true about how people make decisions ?
Which of the following help explain why firms pay bonuses to workers during particularly profitable years to prevent workers from becoming disgruntled ?
Spending on motoring as a % of household expenditure in the UK shows that motoring is ?
Which of the following best demonstrates the problem of moral hazard ?
Which of the following must be true about a signal that is used to reveal private information in order for the signal to be effective ?
Nicole wants to avoid buying a car that is a lemon. She takes a car she would like to buy to her mechanic before she purchases it. This is known as ?