A Journal Reports That Students Who Attend Private Schools Have

question 82

Multiple Choice

A journal reports that students who attend private schools have higher test scores. Which of the following is an example of an omitted variable that could explain this correlation?I. Parents' education levelII. Socio-economic statusIII. Private school tuition

• A) I only
• B) III only
• C) I, II, and III
• D) I and II only

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Definitions:

Bundle

A collection of goods or services that are sold together.

Marginal Rate of Substitution

The rate at which a consumer is willing to give up some amount of one good in exchange for another good while keeping the same level of utility.

Consumption Doubled

A scenario where the amount of goods or services consumed by an individual or within an economy is increased by 100%.

Perfect Substitutes

Goods or services that can be used in exactly the same way and are interchangeable in consumption or production.