Hobby loss rules prevent taxpayers from deducting net losses on a Schedule C from activities that are deemed hobbies instead of businesses. Which is a true statement?

During the year, Marco’s house was destroyed by a hurricane that devastated the Gulf coast. President Biden announced a federal disaster declaration for the whole area. He had a basis of $150,000 but the insurance adjuster determined the decline in value was $175,000. He received $130,000 in insurance proceeds. His AGI was $60,000 for this year. How much can Marco deduct for a casualty loss?

Extra Credit: No penalty for trying. What are 2 specific strategies that are used in cognitive interviewing?

If you surveyed freshmen, sophomores, juniors, and seniors at the beginning of the year and compared these groups’ happiness scores, what type of design would that be? 

A researcher classified what Major undergraduates selected at the end of their first year in college. Majors were: Art, Education, Math, Science, Other). What scale of measurement is Major?

If you were planning an observational study to examine teachers’ question-asking behavior and you expected that there was a large amount of variability in teachers’ question-asking behavior, what decision would be reasonable to achieve high reliability in the observational data?

EXTRA CREDIT: David Ricardo wrote “On Foreign Trade” responding to what he believed to be a weakness in Adam Smith’s “Wealth of Nations.” Which of the following best represents his theorem?

Fires in California burn through orange tree orchards. (oranges)

The government repeals all gun control laws. (guns)

The government imposes a price floor on gasoline. (gasoline)