"Why Do We Do Natural Experiments?" Asks a Student

question 58

Multiple Choice

"Why do we do natural experiments?" asks a student. "After all, each disaster that causes a natural experiment is unique." A good answer would be:

• A) "They are an inexpensive ways to gather detailed individualized data on disaster survivors."
• B) "They provide the highest levels of internal and external validity when studying the effects of disasters."
• C) "The sheer volume has allowed researchers to identify patterns of reactions in those persons involved in disasters."
• D) "The findings to date have been instrumental in helping prevent casualties from natural disasters."

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Definitions:

MACRS Depreciation

Modified Accelerated Cost Recovery System, a method of depreciation for tax purposes in the United States that allows a faster write-off of assets.

Product Warranty Expenses

Product warranty expenses are costs that a company anticipates and records for potential future claims on warranties provided for their products.

Temporary Differences

Differences between taxable income and accounting income, due to items being recognized in different periods for tax and accounting purposes.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.