Question

Read this excerpt from Levitt and Dubner’s Freakonomics.

Answer 1

Answer: B. The incentive system rewards elite sumo wrestlers.

The passage tells us that elite sumo wrestlers are rewarded by earning millions and being treated like royalty. It also tells us that life is not as good for those outside the elite, as their duties include tending to their superiors, preparing their meals, cleaning their quarters and washing their bodies. Therefore, the most accurate answer is option B.

Answer 2

The incentive scheme that rules sumo is intricate and extraordinarily powerful. Each wrestler maintains a ranking that affects every slice of life; how much money he makes, how large an entourage he carries, how much he gets to eat, sleep, and otherwise take advantage of his success. The sixty-six highest-ranked wrestlers in Japan, comprising the makuuchi and juryo divisions, make up the sumo elite. A wrestler near the top of this elite pyramid may earn millions and is treated like royalty. Any wrestler in the top forty earns at least $170,000 a year. The seventieth-ranked wrestler in Japan, meanwhile, earns only $15,000 a year. Life isn’t very sweet outside the elite. Low-ranked wrestlers must tend to their superiors, preparing their meals and cleaning their quarters and even soaping up their hardest-to-reach body parts. So ranking is everything.

A wrestler’s ranking is based on his performance in the elite tournaments that are held six times a year. Each wrestler has fifteen bouts per tournament, one per day over fifteen consecutive days. If he finishes the tournament with a winning record (eight victories or better), his ranking will rise. If he has a losing record, his ranking falls. If it falls far enough, he is booted from the elite rank entirely. The eighth victory in any tournament is therefore critical, the difference between promotion and demotion; it is roughly four times as valuable in the rankings as the typical victorB. The incentive system rewards elite sumo wrestlers. If they win eight bouts out of 15 then they can be rewarded with a higher ranking. There is incentive to win these bouts as losing means the wrestlers have to be like maids to their superiors and do demeaning tasks. But winning means they can go on to make considerable money as top wrestlers ie above $170,000 per year..