Studies Suggest That Being Raised in a High Socioeconomic Status

question 27

Multiple Choice

Studies suggest that being raised in a high socioeconomic status (SES) instead of a low SES family is worth between _____ IQ points.

• A)2-5
• B)6-11
• C)12-18
• D)19-25

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Definitions:

Consumption Function

An economic formula that expresses the relationship between total consumption and gross national income.

Price Level

An index that measures the average of prices for goods and services in an economy over a period, often used to assess inflation or deflation.

Disposable Income

The leftover money for households to use in savings and for buying things, once income taxes have been considered.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income, indicating how changes in income affect spending.