Differences in IQ Scores of Children in Different Racial and Ethnic

question 41

Multiple Choice

Differences in IQ scores of children in different racial and ethnic groups:

• A)do not tell us anything about what would happen if the children lived in different environments.
• B)reflect differences for given individuals.
• C)indicate intellectual potential.
• D)are completely explained by differences in socioeconomic class.

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Definitions:

Savings Rate

The proportion of disposable income that is saved rather than spent on consumption, typically expressed as a percentage.

Credit Cards

Financial instruments issued by banks or financial institutions that allow cardholders to borrow funds with which to pay for goods and services with the obligation to pay back the borrowed money, plus any applicable interest.

Permanent Income Hypothesis

A theory suggesting that people's consumption choices are based on their long-term income expectations rather than their current income.

Induced Consumption

Consumer spending that increases as disposable income rises, and decreases as disposable income falls, unrelated to the level of interest rates.