Question

The Canadian government built and runs the National Gallery of Canada in Ottawa. Admission to the...

The Canadian government built and runs the National Gallery of Canada in Ottawa. Admission to the museum is free of charge. We can conclude that…

a.

Special interests engaged in rent-seeking behaviour.

b.

There is a principal-agent problem.

c.

Private enterprise wouldn’t have provided the free service.

d.

There is regulatory capture.

In the Fall of 2015, Iranian GDP declined. What was the most important factor?

a.

Iranian consumers organized on social media to boycott buying domestically produced cars.

b.

Iran signed a free-trade deal with Russia.

c.

Economic sanctions were to be lifted starting in 2016 after Iran agreed not to produce nukes.

d.

The price of oil fell.

On Monday morning, Janet takes a quiz one hour after having coffee and gets a decent grade. Then on Wednesday morning, she takes an equally hard quiz without drinking any coffee and gets a worse grade. Can we conclude that drinking coffee helps Janet on quizzes?

a.

Yes, because she did better when she drank coffee.

b.

No, because we need more observations.

c.

Yes, because it isn't just Janet--lots of people do better on coffee.

d.

No, because Janet didn't run a proper experiment that holds other variables constant.

Clear my choice

Homework Answers

Answer #1

1. Option C. Private enterprise wouldn’t have provided the free service.

Explanation: Private enterprises cannot survive without making a profit and therefore they can not provide services free of cost.

2. Option D. The price of oil fell.

Explanation: Iran's GDP is heavily dependent on oil. In 2015, the oil price fell to as low as $34.55 per barrel.

3. Option D. No, because Janet didn't run a proper experiment that holds other variables constant.

Explanation: In order to derive a valid conclusion and find out the effect of a variable, one needs to hold other variables constant.

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