a) Which of the following is the best example of Rational Ignorance?

(A) Millennials are ignorant about what good music is, and so they listen to Katy Perry.

(B) The citizens of Constantinople do not understand how truly awesome and Chad their emperor is.

(C) A drug company lobbies Parliament to protect it from lawsuits in case of severe side effects from its products.

(D) Although Ranjiv is a student, he does not have the time to read up on education policy, since he is busy with school, work, and family.

b) Consider the following claim: "Divorces have increased by 100% in this country over the past decade. This is unprecedented, and a worrying sign." Without further context, this claim is an example of which statistical fallacy?

(A) Correlation implies causation. (B) Biased sample. (C) Overgeneralization. (D) Base Rate Fallacy.

c) Within the Marvel universe, the nation of Wakanda controls the world's supply of Vibranium, a metal with extraordinary abilities, costing $10,000 per gram. Currently, Wakanda does not trade the metal with other countries, preferring to remain in a state of autarky. However, if Wakanda subsequently decides to export Vibranium, what would happen to the price, assuming demand stays constant?

(A) It would go up. (B) It would go down. (C) It would stay the same. (D) Impossible to determine without more information.

d) Which of the following policies would contravene the Canadian Constitution?

(A) The federal government starts an agricultural loans program.

(B) The Government of Quebec slashes university tuition.

(C) The Government of Alberta enacts export tariffs for oil being shipped to the United States.

(D) The federal government commits funding to bring safe drinking water to indigenous reserves.

e) Supply-side economics is a theory which states that cutting taxes increases economic growth and government tax revenues. Which of the following is an assumption underlying these claims?

(A) That the elasticities of demand and supply are shared equally between consumers and producers.

(B) That the tax rate is to the right of T on the Laffer curve.

(C) That there is not too much of a government debt to cause bond markets to spiral out of control.

(D) That the Production Possibilities Frontier exhibits a diminishing Marginal Rate of Transformation.