TASK DEFINITION: You are given a background paragraph that describes one or more causal or qualitative relationships such as a relationship in economics or a scientific law and a story that makes use of the concepts or the relationship described in the provided paragraph. You are also given a question about the story that requires an understanding of the relationship described in the background paragraph and the story. You need to come up with an answer to the given question; the answer will be a span from either the question or the story. In order to correctly answer the given question, you need to understand the relationship mentioned in the background paragraph and should be able to use it to understand that in the story. Your answer can not consist of any word that is not mentioned in any of these: the background paragraph, the story, or the question. You can directly copy and paste a span from the story or the question while answering the given question.
PROBLEM: Background Paragraph: The trade-off theory of capital structure is the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits. The classical version of the hypothesis goes back to Kraus and Litzenberger[1] who considered a balance between the dead-weight costs of bankruptcy and the tax saving benefits of debt. Often agency costs are also included in the balance. This theory is often set up as a competitor theory to the pecking order theory of capital structure. A review of the literature is provided by Frank and Goyal.[2]

An important purpose of the theory is to explain the fact that corporations usually are financed partly with debt and partly with equity. It states that there is an advantage to financing with debt, the tax benefits of debt and there is a cost of financing with debt, the costs of financial distress including bankruptcy costs of debt and non-bankruptcy costs (e.g. staff leaving, suppliers demanding disadvantageous payment terms, bondholder/stockholder infighting, etc.). The marginal benefit of further increases in debt declines as debt increases, while the marginal cost increases, so that a firm that is optimizing its overall value will focus on this trade-off when choosing how much debt and equity to use for financing. 
Story: Company X stopped taking on more debt, and decided to file for bankruptcy, while company Y, kept benefiting from the tax benefits of debt, having a lower debt level. 
Question: Which company had more costs than benefits related to debt, company X or company Y?

SOLUTION: company X.

PROBLEM: Background Paragraph: Boys and girls between the ages of 9 and 13 should get 9 mg of iron every day. Girls between the ages of 14 and 18 should get 15 mg of iron every day. Boys between the ages of 14 and 18 should get 11 mg of iron every day. Pregnant women need the most iron—27 mg daily. Good sources of iron include shellfish, such as clams and oysters. Red meats, such as beef, are also a good source of iron. Non-animal sources of iron include seeds, nuts, and legumes. Breakfast cereals often have iron added to them in a process called fortification. Some good sources of iron are listed below ( Table below ). Eating vitamin C along with iron-containing food increases the amount of iron that the body can absorb. 
Story: David works as a nutritionist with the public health department. He categorized the certain sections of his county's population. First he categorized boys and girls between nine and thirteen years as cat A. Then he put girls between fourteen and eighteen years in cat B, and boys of the same age in cat C. Lastly, he categorized pregnant women as cat D. He needs to recommend healthy diet, especially iron intake, for each group. 
Question: Would cat B need less or more iron than cat A?

SOLUTION: more.

PROBLEM: Background Paragraph: Start right above point on the temperature axis and follow the red line vertically. At very low pressure, the particles of the substance are far apart from one another and the substance is in the gas state. As the pressure is increased, the particles of the substance are forced closer and closer together. Eventually the particles are pushed so close together that attractive forces cause the substance to condense into the liquid state. Continually increasing the pressure on the liquid will eventually cause the substance to solidify. For the majority of substances, the solid state is denser than the liquid state and so putting a liquid under great pressure will cause it to turn into a solid. The line segment represents the process of sublimation, where the substance changes directly from a solid to a gas. At a sufficiently low pressure, the liquid phase does not exist. The point labeled is called the triple point . The triple point is the one condition of temperature and pressure where the solid, liquid, and vapor states of a substance can all coexist at equilibrium. 
Story: Dan is conducting a research to see how a substance behaves in varying pressure. First, he selects a gaseous substance in very low pressure. He calls it as case A. Then he increases the pressure. He calls it case B. Finally, he increases the pressure even further. He calls it case C. 
Question: In case A would the particles see less or more distance between them than in case B?

SOLUTION:
more.