Ugly Criminals

An economist friend of mine made the following claim: "Criminals are uglier than law-abiding people--it's simple economics at work."

Provide an economic explanation for the above claim. Also, provide one testable hypothesis regarding this claim.

Tequila flavored beer, anyone?

Alcohol is illegal in the dorms at Abstinens College. Why are students more likely to sneak in a couple bottles of, say, tequila, rather than cases of beer, even though most would rather drink beer than tequila?

Congratulations to Yuan Tao for being the first to provide a plausible economic analysis of the drinking dilemma described above.

Name That Economist

While Keynes is often thought of as the "father of modern macroeconomics," this Scandinavian economist could also lay claim to the title. Known for his socialist leanings, he favored the development of a welfare state that sought to redistribute income to those less fortunate. Our mystery economist was also known to espouse provocative views on various social issues...even leading to some time in jail because of his views.

Congratulations to Yang Yang for being the first (and only) person to correctly identify Knut Wicksell as the mystery economist.

Gasoline boycott?

The price of gasoline is now exorbitant. A good scheme for solving the problem is for consumers to boycott gasoline, driving down its price; when the price is low, consumers can resume their higher purchases.

True or False? Explain your answer.

Congratulations to Jennifer Wolfe for being the first to provide a correct answer to this week's question.

Name That Economist

Here is a haiku to describe the mystery economist:

His foundations told,
a math story of econ,
and led to a prize.

Your answer must also come in the form of a haiku!

Congratulations to William Hamilton for correctly identifying Paul Samuelson as the mystery economist (and using a haiku along the way).

Simpson's Paradox......Doh!

Professor Neo Klassikle asked his research assistant to find out if the average wage of women rose or fell over a ten-year period. The following morning, the assistant returned and said, "I wasn't able to find anything on women, but I found out that the average wage for all workers fell during that period while the average wage for men rose. It must, therefore, be true that the average wage for women fell." "Not necessarily," said the professor. "It's possible that the average wage for women rose during that period, too." How could that happen? Use a numerical example to support your answer.

Congratulations to Yuan Tao for correctly explaining the seemingly odd set of facts described above. The problem presents an application of Simpson's Paradox.

The Real Reason Dinosaurs Became Extinct

If doctors became better at curing lung cancer what would happen to the number of people who smoke cigarettes? What would happen to the overall number of people who died from lung cancer? Explain.


(The title to this blog post is in reference to a The Far Side cartoon by Gary Larson in which several dinosaurs were standing around smoking cigarettes--very funny stuff.)

Congratulations to Yang Yang for being the first to submit a reasoned answer to this week's question.