A
infers a cause from a mere correlation
B
bases its conclusion on a sample that is too small
C
misinterprets a key word in the newspaper’s advertisement
D
employs as a premise the contention it purports to show
E
criticizes the source of a claim rather than the claim itself
A
editors of popular magazines generally do not approve stories about issues that cannot be well understood by those magazines’ readers
B
popular magazines cannot stay in business unless they regularly publish stories that their readers find interesting
C
highly complex and counterintuitive theories are increasingly common in almost all branches of science
D
readers of popular magazines are generally unable to accurately assess their own understanding of complex scientific issues
E
most readers of popular magazines are unwilling to seek out other sources in order to read about scientific issues that they find interesting
A
The film director’s film received no positive reviews.
B
Filmgoers seldom see more than one film in a weekend.
C
The total number of filmgoers was larger than average on the weekend the film director’s film opened.
D
Each of the other films that the film director alludes to received one or two positive reviews.
E
Most filmgoers are drawn to a variety of kinds of film.
Researchers have found that the percentage of people who start new businesses is much higher in countries with high per capita income than in countries with moderate per capita income. This is to be expected since most entrepreneurs in high- and middle-income countries start businesses to take advantage of perceived business opportunities, and there are more such opportunities in high-income countries. Surprisingly, however, the researchers also found that the percentage of people who start businesses is even higher in low-income countries than in high-income ones.
"Surprising" Phenomenon
Why is the percentage of people starting businesses higher in low-income countries than in high-income ones, even though there are more perceived business opportunities in high-income countries, where entrepreneurs often start businesses to take advantage of these opportunities?
Objective
The correct answer will be a hypothesis explaining the difference in motivations for starting a business in high- versus low-income countries. While entrepreneurs in high-income countries often start businesses take advantage of abundant perceived business opportunities, entrepreneurs in low-income countries must have a different motivation.
A
In both high- and low-income countries, well over half of new businesses expect to provide jobs for no more than one or two people.
This does not provide a difference between the reasons for starting a business in high-income countries versus in low-income countries. Instead, it gives us a similarity in the expected job creation of new business in both high- and low-income countries.
B
Many governments of high-income countries provide assistance to individuals who want to start businesses, but very few governments of low-income countries do so.
This adds confusion by suggesting why people in low-income countries would be less likely to start a business, instead of explaining why they are actually more likely to do so than those in high-income countries.
C
The percentage of new businesses that fail within a few years of being founded is generally no higher in low-income countries than in high-income countries.
We need a difference in the reasons for starting a business in low-income versus high-income countries. Instead, (C) gives us a similarity in the failure rates of business in low- and high-income countries.
D
In high-income countries, many entrepreneurs who start businesses to take advantage of perceived business opportunities soon discover that the opportunities were illusory.
Whether the perceived business opportunities in high-income countries are illusory does not explain why the percentage of people starting businesses is higher in low-income countries. We need an alternate reason for starting a business in low-income countries.
E
In low-income countries, most entrepreneurs start businesses because all other employment options are either absent or unsatisfactory.
This explains why more people start businesses in low-income countries than in high-income ones: in low-income countries, entrepreneurs often start businesses due to limited job options, rather than because of abundant business opportunities.
Yvonne: You’re kidding me! You might as well say that a virus is valuable because it stimulates epidemiologists.
A
sun exposure harms skin cells
B
Swenson’s book is a model of poor scholarship
C
Swenson’s book should be considered valuable
D
Swenson’s book has stimulated new research on sun exposure
E
something that does not stimulate new research can have value
Dolphins can dive to greater depths than Weddell seals, but not as deep as Elephant seals can.
Northern fur seals can dive to greater depths than Weddell seals, but not as deep as Elephant seals can.
A
Dolphins can dive to greater depths than Weddell seals can, but not to depths as great as elephant seals can.
B
Weddell seals can stay submerged longer than northern fur seals can, but dolphins can dive to greater depths than Weddell seals can.
C
Weddell seals can dive to greater depths than dolphins can and can stay submerged longer than northern fur seals can.
D
Northern fur seals can stay submerged longer than elephant seals can, but Weddell seals can dive to greater depths than dolphins can.
E
Northern fur seals can stay submerged longer than Weddell seals can, but elephant seals can dive to greater depths than northern fur seals can.
The stimulus tells us that tariffs help a small group of people (let's say 10 people) but hurts a large group of people (let's say 100 people). You take a poll of all the people (110) and no surprise, most are opposed to the tariffs (say all 100 are opposed).
Great. That's it. 10 people are for the tariffs. 100 are against.
Now imagine you're the politician and you know these facts. What platform are you going to run? An anti-tariff platform? Maybe. It's not entirely unreasonable. But you should identify the assumption you'd be making if you were to run anti-tariff. Namely, that the tariff issue is important to those 100 people.
Obviously, you want to harness votes and avoid driving votes away. If you assume the world is such that tariffs matter equally to everyone, then an anti-tariff platform would harness 100 votes and drive away 10 votes. You come out +90 votes, good.
Negating (A) severely challenges the assumption. It opens up the possibility that the actual world is one in which the pro-tariff 10 people care way more about the tariff than the anti-tariff 100 people. If that were the case, then an anti-tariff platform would for sure lose you 10 votes without a guarantee of adding any additional votes.
We know this intuitively in the real world. People care about many many things. But not all of those things translate into political action through voting. In other words, the set of things that people vote on is a small sub-set of the things that people care about.
The phenomenon that (A) hints at is actually very well documented in economics and politics. The issue is one of concentrated benefits versus diffuse costs. Think of it like this. There's a set of laws that allow you to take a penny from everyone in the country each year. You're net positive roughly $3 million each year. Everyone is hurt one penny each year. Who cares about that law more? Of course you do. You care intensely that that law remain in place and you will take political action to ensure that it does. This would at minimum include voting on that basis but more likely even include lobbying. Me? I sort of care a little maybe that that law gets repealed. Certainly I don't care from a selfish economics perspective, after all I only stand to gain 1 penny. I have to find motivation to care from a justice or fairness principle and that's harder to muster. I very likely will not take any political action on this issue.
In most states, lobbyists ensure that legislation force the retail distribution of cars through dealerships, even if direct distribution from the manufacturer to the consumer is more economically efficient. But the benefits of this regime are concentrated to the dealerships (it's their entire livelihoods!) while the costs are diffused to everyone else (everyone pays a little more for their cars and manufacturers earn a little less). The vocal minority with a lot to gain will organize politically while the indifferent majority with little to lose individually will not. The end result is a net loss for society.
The presence of concentrated benefits versus diffuse costs is a bug in our political system, not a feature.
A
Moradco operates more mines in Velyena than any other company operates there.
B
The total number of gold mines that Moradco operates is larger than the total number of mines it operates in Velyena.
C
Most of the gold mines that Moradco operates are not located in Velyena.
D
Most of the mines that Moradco operates in Velyena are not gold mines.
E
Most of the mines that Moradco operates throughout the world are not gold mines.