In the early 1800s, there was a smallpox outbreak in a remote part of Russia. The government sent in a large group of army doctors, but they were too late to stop the epidemic. Thirty years later, there was another smallpox scare. A local statistician cautioned the government against a similar response, noting the increased mortality and high number of army doctors during the earlier epidemic. Was the statistician providing good advice?
What will be an ideal response?
The statistician confused correlation with causation. The doctors were not the cause of the smallpox deaths. If the statistician were correct, then we should get rid of hospitals, since so many people die there. One cannot conclude that the army doctors could have helped 30 years later; this would require additional data comparing smallpox deaths with and without medical assistance.
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The supply of oil is more elastic than the demand for oil. If oil is taxed $10 per barrel, how will the tax be divided between the buyers and sellers?
A) The sellers will pay more of the tax than the buyers. B) The buyers will pay more of the tax than the sellers. C) The sellers and buyers will split the tax evenly. D) The sellers will pay the entire tax.
In 1938, another Agricultural Adjustment Act was passed. The error of the 1933 Act was now avoided. What had that error been?
(a) Acreage allotments (b) Combining provisions for conservation with subsidies (c) Imposition of specific taxes on food processors (d) Excessive delegation of power
The group that benefited most from the bailout of General Motors and Chrysler was nonunion workers
Indicate whether the statement is true or false
Argentina's experience since 1990 suggests that adopting a currency board imposes strict discipline on the country's fiscal policies.
Answer the following statement true (T) or false (F)