What Might Be a Plausible Reason That Upper-Status Students Score

question 22

Multiple Choice

What might be a plausible reason that upper-status students score higher on SATs?

• A) Their IQs are higher.
• B) They are less likely to actually take the test multiple times.
• C) They develop strong peer support,studying together for the SATs.
• D) Their parents are better able to obtain help for them,as in SAT prep courses and extra tutoring if they are doing poorly in school.

---

Definitions:

Municipal Obligations

Debt securities issued by municipalities to fund public projects, which may offer tax-exempt interest income to investors.

Operating Loss Carryback

A tax provision that allows a company to apply a current year's net operating losses to past profit years to obtain a tax refund.

Operating Loss Carryforward

Future reductions in taxable income allowed due to losses incurred in previous periods.

Temporary Differences

Differences between the book basis and tax basis of an asset or liability that result in taxable or deductible amounts in future years.