What Is the Relationship Between Educational Test Scores (E

question 8

Multiple Choice

What is the relationship between educational test scores (e.g., SAT and ACT) and social class?

• A) There is no relationship between educational test scores and income.
• B) As average family income goes up, so do SAT scores.
• C) SAT scores are unpredictable, regardless of parents' social class and income.
• D) Social class does not have much effect on SAT and ACT scores.

Interpret the consequences of changes in factors affecting demand and supply on market outcomes.

Understand the concept of market equilibrium and how changes in supply and demand affect equilibrium price and quantity.

Comprehend the effects of complementary and substitute goods on market dynamics.

Analyze the impact of external factors such as technology, income, and consumer preferences on market equilibrium.

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Definitions:

Keynesian Economist

An economist who follows the principles of John Maynard Keynes, advocating for government intervention through fiscal and monetary policies to manage economic cycles.

Recession

A period of economic decline across an economy lasting more than a few months, typically visible in GDP, real income, employment, industrial production.

Aggregate Supply

The overall quantity of products and services that companies in a country's economy intend to sell over a set duration.

Wealth Effect

The change in consumer spending and economic behavior that results from a change in perceived wealth, often due to asset price fluctuations.