A Group of 2-Year-Old Infants Are Selected for a Special

question 86

Multiple Choice

A group of 2-year-old infants are selected for a special program because their IQ scores are very low. Five years later, most of them have improved. One possible explanation is that the special program produced great benefits. Another explanation is that

• A) the validity of the test decreased over time.
• B) the low scores had nowhere to go but up.
• C) the mean IQ score is higher for 7-year-olds than for 2-year-olds.
• D) the utility of the test increased over time.

---

Definitions:

Retained Earnings

Profits that a company keeps, after dividends have been paid, for reinvestment in the business or to pay off debt.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service, a crucial concept in economic decision-making.

R&D Financing

The allocation of financial resources towards research and development activities within a company or institution, aiming to innovate or improve products or technologies.

R&D Expenditure

Financial resources allocated by businesses, governments, or other entities to research and development activities aimed at innovation and improvements.