RealWorldGraduation_Question_70_CharitableFoundations   <– PDF

A famous person decides to set up a tax-exempt Foundation. He names the Foundation after himself (like the Ford, Carnegie, and Rockefeller Foundations), files all the necessary paperwork, and begins to solicit tax-deductible contributions from the public.  Although the Foundation has zero assets at the beginning, the Foundation receives a great deal of money from the public owing to the founder’s personal popularity.  After withholding a small percentage for administrative costs, he bundles all the contributions received from the public into large amounts and gives the money away to various causes, such as AIDS research, literacy, etc.  All of the donations are made in the name of the Foundation.  What is the main benefit of this arrangement?

a) People get to take a tax deduction for their contributions.

b) The money contributed, except for administrative costs, goes to good causes that help the less fortunate.

c) Enough money can be concentrated in each of the charitable areas to make a real difference.

d) People feel better about themselves by helping others.

e) All of the above.

(The answer is on p. 2 of the PDF.)

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RealWorldGraduation_Question_69_DefendingYourCommunity   <– PDF

A certain community has been plagued by many years of violence by criminal gangs. These gangsters have engaged in street battles in which innocent people, sometimes even small children, were killed in the cross-fire.  They have burned peoples’ houses down, ruined the schools and parks, and hold loud parties that reduce the quality of life in the neighborhood.  Children are afraid to go to school, and people in general are afraid to go outside after dark.  Over the past ten years, 92 innocent people (24 of them children under the age of 10) have been killed by the gangs, with 264 others injured seriously enough to warrant hospitalization.  The local police force has done the best they could with limited resources.  They do manage to arrest a few gangsters after especially infamous crimes, but overall the neighborhood is becoming increasingly dangerous.  Criminal activity by the gangs shows no signs of abating, despite the fact that the members of the gangs are well-known to the police and residents alike.  The residents have found that complaining to City Hall is a waste of time, as the politicians say they are doing the best they can.

A group of residents decides to act in their own interests. They hold a secret meeting and develop a plan to arm themselves, patrol the neighborhood, and attack and kill as many known gang members as they can find.  A local informant finds out about the plan, and reports the residents to the police.  What will happen next?

a) The chief of police arranges a meeting with the residents, and offers to share all the information about the gangs possessed by the police, so that the gangs can be eliminated more efficiently.

b) The chief of police orders his men to assist the residents in any way they can.

c) The mayor intervenes and convinces the residents to abort the plan and also orders the police not to aid the residents. He arranges for representatives of the residents and the various gangs to sit down and discuss the issues in the neighborhood, with the idea that a negotiated settlement can be worked out.

d) The mayor tries to convince the state to fund a jobs-training program for the gang members. At the same time, he convinces the residents to hold off on their plan until the jobs program takes effect.

e) Some combination of the above.

(The answer is on p. 2 of the PDF.)

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Real World Graduation, Question 68: Home Ownership

RealWorldGraduation_Question_68_HomeOwnership   <– PDF

Why is owning your own home a good investment?

a) In the long run, values of houses tend to go up, thus owning a home causes a person’s net worth to increase over time.

b) The federal government and most state governments give homeowners an income tax deduction for interest payments made on a house (if it’s a primary residence).

c) It is easier to customize and decorate one’s own house to one’s own tastes, which is not normally permitted when leasing or renting.

d) One will be able to live very cheaply after the house is paid off, whereas one never stops paying rent.

e) A combination of a), b), and d).

 

(The answer is on p. 2 of the PDF.)

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Real World Graduation, Question 67: Actors’ Causes

RealWorldGraduation_Question_67_ActorsCauses   <– PDF

An actor is anyone who pretends to be someone they’re not. If an actor works hard and persistently studies to become skillful at his profession, he can sometimes achieve great fame and earn a lot of money (that is, he becomes a celebrity, which is defined as being someone who is famous for being famous).  When such an actor subsequently endorses a political proposition or supports some cause, he is often able to persuade many other people to adopt his views.  Why are actors so successful in political causes?

a) Acting skill is extremely rare, and those who have been blessed with it generally have a higher intellectual capacity. The general public is smart enough to recognize superior intellect, and is therefore inclined to trust the opinions of actors.

b) Acting skill requires an unusual amount of insight into the character of people, which enables the actor to acquire a very keen sense of morality. The general public is smart enough to recognize superior moral perception, and is therefore inclined to imitate the actor and adopt his views.

c) Achieving success as an actor requires an inordinate amount of hard work that most people cannot even imagine. Those who have put in this kind of effort demonstrate their total commitment to something; therefore, their endorsement of a political cause indicates a true level of commitment not observed among ordinary people.  The general public is smart enough to recognize the virtue of sincere commitment, and is therefore inclined to imitate the actor.

d) Being a famous and wealthy actor affords him the luxury of leisure time which he can use to increase his knowledge on subjects of interest to society. This is aided by his access to people of greater knowledge and he is then able to acquire true wisdom on issues important to society.  The general public is smart enough to recognize true wisdom, and is therefore inclined to defer to the actor for guidance.

e) Is generally one of the above, although it may vary from person to person and may be dependent on the importance of the political cause.

(The answer is on p. 2 of the PDF.)

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