Critiquing an Economic Report on Credit Access
An economic report analyzing credit access in a specific region presents the following two key findings from a large-scale household survey:
- Only 5% of respondents reported being denied a loan for which they had applied in the last five years.
- Among those who had not applied for a loan, 85% stated they believed they would be approved if they were to apply for one.
The report's main conclusion is that 'credit constraints are not a significant barrier for the vast majority of the population in this region.'
Critique the report's conclusion. Explain how the specific types of survey questions used could lead to an inaccurate assessment of the true prevalence of credit constraints.
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Social Science
Empirical Science
Science
CORE Econ
Economics
Economy
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.9 Lenders and borrowers and differences in wealth - The Economy 2.0 Microeconomics @ CORE Econ
Evaluation in Bloom's Taxonomy
Cognitive Psychology
Psychology
Related
A researcher is studying access to credit and includes the following two questions in a survey for individuals:
- 'If you were to apply for a personal loan of $5,000 today, do you think you would be approved?'
- 'Thinking back over the last three years, were you ever turned down for a loan that you applied for?'
Which statement best analyzes the primary limitation associated with each of these questions for accurately measuring who is unable to get credit?
Evaluating a Research Design for Credit Constraints
Critique of a Survey-Based Policy Initiative
Evaluating a Survey Question's Reliability
A survey question asking individuals, 'Were you denied a loan in the past year?' is a more reliable measure of credit constraints than a question asking, 'If you applied for a loan today, do you believe you would be approved?'
An economist is studying credit markets using survey data. Match each type of survey question with the primary limitation it introduces when trying to accurately identify individuals who cannot get credit.
Improving Survey Questions on Credit Access
Critiquing an Economic Report on Credit Access
Analyzing Conflicting Survey Results on Credit Access
A national survey finds that only 5% of respondents report being denied a loan in the past three years. Based on this finding alone, it is safe to conclude that credit constraints are not a significant issue for the vast majority of the population.