In conducting statistical analysis to determine whether Head Start is effective, it is imperative that researchers compare Head Start graduates with
A. equally situated non-Head Start children.
B. children who have stay-at-home parents.
C. the general population.
D. children who are in private child care arrangements.
Answer: A
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When your income increases
A) your budget line shifts rightward and its slope does not change. B) your budget line shifts leftward and its slope does not change. C) the slope of your budget line increases. D) the slope of your budget line decreases.
Which is not true for a monopolistically competitive industry?
A. Firms tend to operate with excess capacity. B. Firms operate at the lowest point of their ATC curves in the long run. C. Each firm faces a downward-sloping demand curve. D. These firms earn zero economic profits in the long run.
When competing firms set prices with attention to the prices set by their competitors, the demand curve faced by each firm
A) becomes indeterminate. B) becomes less elastic. C) becomes more elastic. D) shifts toward the northeast. E) shifts toward the southwest.
If the price of a good falls, before the amount consumed changes the marginal utility per dollar from that good
A) decreases. B) increases. C) might either increase or decrease depending on whether the good is a substitute or a complement. D) More information is needed to determine the answer.