When a Paul Samuelson (Nobel Prize winning economist) switched from physics to economics, Robert Solow is...

When a Paul Samuelson (Nobel Prize winning economist) switched from physics to economics, Robert Solow is said to have remarked that the average IQ in both disciplines went up. How can the average IQ levels in both economics and physics increase when one person switches disciplines? Provide a numerical example to explain your answer.

Expert Solution

Robert Solow implies the following:

That Paul Samuelson's IQ was lower than the median IQ of the practioners in Physics,so when he left the field of physics his lower iq no longer pulled down the average of the group of Physicists.

Similarly, his IQ was higher than the median IQ of economists and when he started being counted as an economist the average IQ of the field of Economics went up.

This could be looked at through the perspective of efficient allocation of resources too,Paul Samuelson's intelligence is far more suitable for economics than physics and hence his IQ is better employed in economics.

EG-

Consider two sets of numbers (1,2,3) & (4,5,6,7)

SET 1 average: 2 SET 2 average: 5.5

Now when you remove '4' from SET 2 and add it to set 1

SET 1 AVERAGE: (1+2+3+4)/4= 2.5 SET 2 Average: (5+6+7)/3=6

Rahul Sunny answered 2 years ago

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