When He Was in the Fifth Grade, Jorge's Middle-SES Parents

question 173

Multiple Choice

When he was in the fifth grade, Jorge's middle-SES parents died in a tragic accident. Jorge was adopted into a lower-SES environment by an aunt. Kalendria, on the other hand, was born into a lower-SES environment but was adopted into a middle-SES milieu as a ten-year-old when her mother began an extended prison sentence. Lloyd, finally, was born into a middle-SES family, then adopted into a different middle-SES family at the age of 10. The vocabularies of all three children are assessed when they are 14. Which expression below provides the best estimate of their relative scores on the vocabulary test, all else being equal?

• A) Lloyd > Jorge = Kalendria
• B) Lloyd = Jorge = Kalendria
• C) Lloyd > Jorge = Kalendria.
• D) Lloyd = Jorge > Kalendria.

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Definitions:

Pension Liability

The total amount of money a company is obligated to pay to its employees' pension funds in the future.

Actuary

A professional who analyzes financial risk using mathematics, statistics, and financial theories, particularly in the insurance and finance industries.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Modified Approach

An alternative accounting technique that allows governmental entities to report certain infrastructure assets at historical cost, foregoing the need for depreciation.