[Q]: Given the background: The Laffer curve depicts the amount of government revenue as a function of the rate of taxation. It shows that for a tax rate above a certain critical rate, government revenue starts decreasing as the tax rate rises, as a consequence of a decline in labour supply. This theory supports that, if the tax rate is above that critical point, a decrease in the tax rate should imply a rise in labour supply that in turn would lead to an increase in government revenue. and the situation: After the second world war Germany and France took two different policies in respect to taxation. After the war Germany, then West Germany, has mostly elected pro-capitalist governments. As a consequence, Germany implemented tax rate below the critical rate. But France took the other way. Their mostly pro-socialist governments implemented tax rate above the critical rate. As a result, businesses had to make informed decisions while doing business in these countries. Answer the following question: Would Germany have lower or higher labor supply?
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[A]: higher

[Q]: Given the background: The Hawaiian Islands ( Figure above ) are in the central Pacific Ocean. The islands are volcanoes that increase in age from southeast to northwest. The youngest island is the Big Island of Hawaii at the southeast end of the chain. The volcanoes get older through Maui, Kahoolawe, Lanai, Molokai, Oahu, Kauai, and Niihau Islands through the northwest. The Kilauea volcano on Hawaii has been erupting almost continuously since 1983. There are also eruptions at an underwater volcano called Loih and the situation: Two cousins lived 10,000 miles away from each other but often talked about visiting the Hawaiian islands together. Lilly lived in Maine, while Heather lived in Hawaii. Answer the following question: Which cousin lived farther from Molokai?
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[A]: Lilly

[Q]: Given the background: New species develop naturally through the process of natural selection . Due to natural selection, organisms with traits that better enable them to adapt to their environment will tend to survive and reproduce in greater numbers. Natural selection causes beneficial heritable traits to become more common in a population and unfavorable heritable traits to become less common. For example, a giraffe's neck is beneficial because it allows the giraffe to reach leaves high in trees. Natural selection caused this beneficial trait to become more common than short necks. and the situation: Greg and Frank were two friends that studied natural sciences. One day, Greg decided to start reading about natural selection. His friend Frank decided to read more about populations that displayed natural selection more sparingly. They both learned lots of new interesting facts. Answer the following question: Which friend studied more about the natural development of species?
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[A]: Greg

[Q]: Given the background: The lungs of mammals are unique in having alveoli . These are tiny, sac-like structures. Each alveolus is surrounded by a network of very small blood vessels (see Figure below ). Because there are millions of alveoli in each lung, they greatly increase the surface area for gas exchange between the lungs and bloodstream. Human lungs, for example, contain about 300 million alveoli. They give the lungs a total surface area for gas exchange of up to 90 square meters (968 square feet). That's about as much surface area as one side of a volleyball court! and the situation: Two students learned about respiratory systems in animals. Dana learned more about mammalian lungs, while Barry learned more about the lungs of birds. Answer the following question: Which student learned less about surface area for gas exchange between the lungs and bloodstream?
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[A]:
Barry