Q: Background: People protect areas that might flood with dams. In dire situations, they use sandbags ( Figure below ). Dams are usually very effective, but high water levels sometimes cause a dam to break. In that case, flooding can be catastrophic. Flood waters can also overflow a dam. People may line a river bank with levees to protect against floods. These are high walls that keep the stream within its banks during floods. Flood protection in one location sometimes causes problems elsewhere. For example, a levee in one location may just force the high water upstream or downstream. This will lead to flooding in a different location. Sometimes water gets so high that the river must be allowed to flood. Paragraph: Two villages experienced flooding this spring. Berg village used many sandbags to protect from the dam overflowing. Creek village didn't use any sandbags, they were caught by surprise. Given the paragraph above, please answer correctly the following question: Which village was less affected by the dam overflowing?
A: Berg

Q: Background: 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. Paragraph: Bob is a financial analyst. He used to work for company A. Bob noticed that company A is mostly financed by debt. Recently, he changed job and now working as a financial analyst for another company, company B. Company B has completely different culture than company A. Company B is mostly financed by equity. Given the paragraph above, please answer correctly the following question: Would company A consider or ignore backruptcy costs?
A: consider

Q: Background: Fish reproduce sexually. They lay eggs that can be fertilized either inside or outside of the body. In most fish, the eggs develop outside of the mother's body. In the majority of these species, fertilization also takes place outside the mother's body. The male and female fish release their gametes into the surrounding water, where fertilization occurs. Female fish release very high numbers of eggs to increase the chances of fertilization. Paragraph: Tim and Dan both studied reproduction in college. Dan studied plant reproduction while Tim studied fish reproduction. Given the paragraph above, please answer correctly the following question: Which person studied more about the way fish reproduce?
A: Tim

Q: Background: Distance decay is a geographical term which describes the effect of distance on cultural or spatial interactions. The distance decay effect states that the interaction between two locales declines as the distance between them increases. Once the distance is outside of the two locales' activity space, their interactions begin to decrease. With the advent of faster travel, distance has less effect than it did in the past, except where places previously connected by now-abandoned railways, for example, have fallen off the beaten path. Advances in communications technology, such as telegraphs, telephones, broadcasting, and internet, have further decreased the effects of distance.[1] Paragraph: Wade county was situated to the east of Gray county. Due to afavorable landscape, Wade county built more roads and railways. Given the paragraph above, please answer correctly the following question: Which county would develop less socially in the future?
A:
Gray