Welcome to UCLA Anderson Review’s quiz, in which we aim to extract business and life lessons from faculty research we cover each month. Should a question pique your interest, you can click through to the Review article for a full explanation of the research. Give yourself a gold star if you answer all five questions correctly, but the real reward will be encountering useful and interesting information. Comments and suggestions welcome.
Much of Native American land, held in tribal trusts, can’t be borrowed against or readily developed. Estimates suggest those impediments decrease the value of an acre of land, compared to full property rights, by between:
$40 and $80
$4,000 and $15,000
$120,000 and $150,000
Apparel companies, following the 2013 collapse of Bangladesh’s Rana Plaza, which killed 1,100 people, have struggled to discern when suppliers subcontract out manufacturing to potentially unsafe shops. A simple model, however, successfully predicts subcontracting:
100% of the time
Soda taxes discourage sugary drink consumption and also raise money for municipal governments. But set the tax too high, and consumers buy soda outside the city and tax revenue is lost. The tax rate per ounce that’s estimated to maximize city revenue is:
When the percentage of middle-class households declines in an area, grocery stores tend to:
Offer a wider assortment of products.
Offer a narrower assortment.
Make no change — assortments are dictated from headquarters.
If your candidate loses in the upcoming election, there’s always next time. An analysis of 11,466 candidates in closely won local races in California from 1995 to 2014 found:
The propensity to run again is equal among genders.
Women are less likely to try again after losing.
Men are less likely to try again after losing.