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I posted a question about the difference between made by vs. made with.
Unfortunately, I'm still confused so I'm giving you the original question. I would like you to solve this question. Please do not relate the questions to any inormation you already know about the Nessie monster.

Read the following article and answer the questions.

(imagine a picture of the lockness monster was here)
www.cryptomundo.com/wp-content/1nessie.jpg

This is the picture of the famous Nessie.
It was taken by a photographer named Christian Spurling in 1934.
My people think Nessie is some kind of monster which lives in Loch Ness, Scotland.
Some people even believe that it is very dangerous and can kill many people.
Every year, many people visit Scotland to see the monster as well as the beatiful nature around the lake.

Questions
(a) Does Nessie kill people?
(b) Why do people visit Loch Nessie?
(c) Who took this picture of Nessie?
(d) Was the picture made by special effects?
(e) Is the thing in the picture really a monster?

A native speaker's answer was
(a) Paragraph only says it can kill many people not that it has
(b) A chance to see the monster and the natural beauty around the lake
(c) Christian Spurling
(d) Cant tell from pic or article
(e) probably not

and he said choice (d) means the picture was made with special effects and using 'by' doesn't cause any problem. What are your thoughts?

I think "Was the picture made by special effects?" means the picture was not taken by a person but entirely created by a computer or something, so I can say No to the question (d).

Thank you for your help!
Comments  
I'd say that your quiz question has many worse problems than that.

This is a picture of the famous Lock Ness monster. It was taken by a photographer named Christian Spurling in 1934. Many people think "Nessie" is some kind of monster which lives in Loch Ness, Scotland. Some even believe that it is very dangerous and can kill people. Every year, many tourists visit Scotland to see the monster as well as enjoy the beatiful natural surroundings of the lake.

Questions
(a) Does Nessie kill people?
(b) Why do people visit Loch Ness?
(c) Who took this picture of Nessie?
(d) Was the photograph image doctored/altered/manipulated?
(e) Is the thing in the picture really a monster?

(a) Paragraph only says it can kill many people, not that it has-- I agree.
(b) A chance to see the monster and the natural beauty around the lake-- I agree.
(c) Christian Spurling-- I agree.
(d) Can't tell from pic or article-- I agree.
(e) probably not-- I agree, but it is a personal judgment; there is no information in text or photograph.

and he said choice (d) means the picture was made with special effects and using 'by' doesn't cause any problem. What are your thoughts?-- See above. By/with is irrelevant; 'special effects' is inappropriate.

I think "Was the picture made by special effects?" means the picture was not taken by a person but entirely created by a computer or something, so I can say No to the question (d).-- Not necessarily. See above.
Do you mean that 'The photo was made with special effects.' is also wrong? And there is no difference in meaning by changing 'with' to 'by'?
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This is my two cents:

1) If you still have question about something people already answered, you need to clarify what you don't understand, or are still confused with.

2) Please do not make the helping hands cieving through the information to find your question.

This will help you as well as those who want to help you.

Made by- this involves with an agent. This sofa was made meticulously by hand,and by the finest craftsman in the trade.

Made with - This sofa is made /desiged with the highest grade leather and most contemporary style in mind. This suggests what goes into the process of making; materials, quality, style and attention to details etc .
Thank you for your advice. I'll be careful about that.

Then, what about the sentence 'The house is heated by gas.'? Gas is not the agent, but isn't it correct?
The paragraph does not say that Nessie has killed people, or can kill people. It only says that some people believe Nessie can kill people.
Students: Are you brave enough to let our tutors analyse your pronunciation?
Heated by solar power, propane or natural gas. All can be considered as agents. It's fine. I suppose, powered with is doable.
Do you mean that 'The photo was made with special effects.' is also wrong? And there is no difference in meaning by changing 'with' to 'by'?
My point is that 'special effects' is wrong here, so that there is no point in discussing 'with' vs 'by': that discussion is irrelevant.

Special effects = noun Movies, Television.
unusual visual and sound effects beyond the range of normal photography or recording, as simulated fires or earthquakes, explosions, thunder and lightning, miniaturized or enlarged images, or other optical or electronic distortions.