In: Economics
22. Which of the following statements is the best example of
complete induction?
(A) “Out of the frying pot, and into the fire.”
(B) “You should consider a career in law. I’ve made millions as a
partner.”
(C) “I talked with some of the families who survived the Armenian
genocide, in order
to write my book on the event.”
(D) “I planned a party for all of my friends, and so asked them
what the theme should
be.”
23. Which of the following statements is the best example of
Berkson’s Paradox?
(A) “People with COVID-19 who take Hydroxychloroquine tend to die
more often than
those diagnosed with COVID-19 who do not take
Hydroxychloroquine.”
(B) “Every person who eats a magazine ends up throwing up. I ended
up eating a
magazine, and so I threw up.”
(C) “I talked with some of the families who survived the Armenian
genocide, in order
to write my book on the event.”
(D) “Jonathan Charles is whack. He can’t even hold a finger to
Peter Mansbridge yo!”
24. Which of the following statements about Adam Smith is
true?
(A) Smith’s ‘Invisible Hand’ metaphor hinted that greed is
good.
(B) Enlightened self-interest means buying and selling whatever you
want.
(C) Smith hated studying at Oxford.
(D) Smith’s ideas influenced the Islamic philosopher Ibn
Khaldun.
25. Which of the following figures is associated with the
Scientific Revolution?
(A) John Nash.
(B) Martin Luther.
(C) Voltaire.
(D) Descartes.
22. Here, option (b) may be considered as the correct option
In the option (b), it is said that the individual under consideration has made money out of the profession which would force the individual to recommend other to choose the profession. This is a perfect example for an induction which means that a proof for something can be taken as a proof for other categories. The fact that the individual made money out of the profession is a proof that choosing such a profession would likely to induce similar results in the future and thus would be likely to influence the other individuals in the economy to choose the same due to the available results.
23. Here, option (a) may be considered as a better option
Berkson’s paradox or Berkson’s fallacy is a counter-intuitive idea that events which seems to be correlated are actually not.
In option (a), although the statement states that the people with Covid-19 who takes Hydroxychloroquine are likely to die more often than those who do not take the medicine, the real world analysis of the same states that the reason for taking the medicine can never be considered as the exact reason for the death in case of Covid-19 as there are multiple reasons for the same. It can be seen that this consideration should be taken in to consideration while the final analysis of the same is to be done and in the wake of this fact, it can be seen that although there is a direct consideration that the statement might be true, the paradoxical condition do exist.
In other given options, it can be seen that a relation exists between the statement and the reason for its occurrence.
24. Here, option (a) is the correct answer
As it is being stated in option (a), the concept of ‘Invisible hand’ hinted that ‘Greed is good’ as stated by Adam smith in his theory. Although the statement cannot be regarded as true in the current scenario, the concept of ‘Invisible hand’ had a focus on the same.
Enlightened self-interest is a philosophy that states that people who act to further the interests of others are likely to serve their own interests ultimately. Thus, the given statement is false as it doesn’t have a focus on the self interest of buying and selling directly.
Option (c ) is false as Adam Smith completed most of his studies in Oxford and said that he loved studying there.
Option (d) is false as the reverse is true ie; It was Ibn Khaldun’s ideas that influenced Adam Smith in the formulation of his theory and not vice-versa.
25. Here, option (d) is the correct answer.
John Nash is a pure mathematician and has not made significant contributions to the scientific revolution
Martin Luther is a professor of theology which has nothing to do with scientific revolution
Voltaire was a French enlightenment writer, thinker and a historian and has not made contributions to the field of science directly
Descartes, although a mathematician has made significant contributions to the field of science.