Which One of the Following Observations Would Tend to Widen

question 48

Multiple Choice

Which one of the following observations would tend to widen the dispersion of earnings?

• A)Banks charge higher interest rates on educational loans to those individuals most likely to face discrimination on the job
• B)Those with higher ability face higher costs of investment funds
• C)Human capital investment demand and supply curves are negatively correlated
• D)Poor families pay a larger proportion of family income on education than rich families

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Definitions:

Community Involvement

Participation by individuals or groups in activities and decisions that impact their local community.

Situational Cause

An explanation for behavior or an event that attributes the cause to external factors in the environment or specific situations.

Dispositional Cause

Attributions of behavior to personal characteristics or dispositions rather than situational factors.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational factors when explaining others' behaviors.