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.

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Definitions:

Monopolistic Competitor

A firm operating in a market structure characterized by many sellers offering differentiated products, which are similar but not perfect substitutes.

Long Run

The Long Run is a period in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Price Discrimination

A pricing tactic in which a provider offers the same or similar services or goods at different price points in various markets.

Arbitraging

The practice of buying and selling the same asset in different markets to profit from price differences.