Wednesday, September 24, 2008
Congratulations to Alissa Bamberger for being the first to recognize that the lower nominal job offer in Cleveland is the more lucrative of the two when adjusted for inflation (see her answer in the comments section).
Tuesday, September 16, 2008
Fact 1: Over the past 20 years, automobile companies have introduced a number of safety devices such as seatbelts and air bags.
Fact 2: Over the past 20 years, the number of highway fatalities per mile driven has increased.
How can you reconcile Fact 1 with Fact 2?
Congratulations to Jeff Staudt for being the first to submit a satisfying answer to the above conundrum. Take a hard look at the picture above and then read his answer in the comments section. Essentially, Jeff is describing what is commonly referred to as a "moral hazard" problem. The idea of using a spike on the steering column has been attributed to Sam Peltzman. Here's a related cartoon.
Wednesday, September 10, 2008
Congratulations to Matt Ginsky for being the first to submit the correct answer. The correct distribution of the $1000 into 10 envelopes would be: 1, 2, 4, 8, 16, 32, 64, 128, 256, and 489. (Do you notice a trend in the first 9 numbers?)
Monday, September 1, 2008
Congratulations to Seita Kawamoto for being the first to correctly identify William Baumol as the famous economist.