Sharon and Luke, Both IT Workers, Make a Point to Read

question 62

Multiple Choice

Sharon and Luke, both IT workers, make a point to read to their children every night before putting them to sleep. Sean Reardon's work identifies four explanations for educational achievement gaps by socioeconomic status. Which of these four explanations of the achievement gap does this example best illustrate?

• A) Income inequality has increased starkly throughout the late twentieth century.
• B) Income is related to a range of social resources that enable parents to support their children's intellectual development.
• C) Middle- and upper-middle-class parents tend to invest more heavily in their children's cognitive development.
• D) Residential segregation on the grounds of income has increased throughout the late twentieth century.

---

Definitions:

Future Earnings

The projected income a company is expected to earn at a future date.

Incorrect Estimates

Errors or inaccuracies in predicting financial outcomes or assumptions, which can impact the financial statements and decision-making.

Fair Value

An estimate of the market value of a property, financial asset, or liability, based on current market prices or valuations.

Entry Price

The initial price at which an asset or investment is bought into a portfolio or market.