Greg J Duncan and a Team of Researchers Analyzed the Effect

question 51

Multiple Choice

Greg J. Duncan and a team of researchers analyzed the effect of parental income on the academic achievement of children. Given what you've read about socioeconomic status and life chances, what do you think Duncan found?

• A) There was no correlation between class status and educational achievement.
• B) Class status helped to predict high school grades but had no relationship to later academic success.
• C) Children from working-class families are more likely to attend and graduate from college, as they have better work ethics.
• D) Parental income is strongly correlated with academic achievement, especially in low-income families.
• E) Parental income only seems to matter for upper-middle-class families; other social classes have more or less the same rates of college and high school graduation.

---

Definitions:

Efficient Level

The optimal point of production or operation where resources are utilized in the most effective manner, without waste, to achieve a desired outcome or maximized benefit.

External Costs

Costs caused by a business activity that are not borne by the business itself, but by other people or the environment.

External Benefits

Benefits from an economic activity experienced by parties not directly involved in the transaction, often leading to positive spillovers in society.

Subsidizing Production

The act of providing financial support to companies or industries to reduce the cost of producing goods or services, often to encourage production or lower prices for consumers.