Members Only > AMA Member Challenge Archive

Answers to AMA Member Challenge
March 2009

1. In late January President Obama signed his first bill into law. Named for Lilly Ledbetter, what issue did it address?

• Social Security
• Food safety
• Equal pay
• Estate tax

Correct answer: Equal pay.  The Lilly Ledbetter Fair Pay Act honors an Alabama woman who lost her case against her employer for years of pay discrimination because the statute of limitations had run out. The new law expands workers’ rights to sue in similar cases by extending the statute.

2. Citigroup says none of the $45-billion federal bailout money it received will go toward its naming rights of which baseball team’s new stadium?

• New York Mets
• Pittsburgh Pirates
• Atlanta Braves
• Washington Nationals

Correct answer: New York Mets. The financially troubled Citigroup signed a $400 million naming rights deal for the Mets’ new stadium, Citi Field, set to open in April.

3. Starbucks is in a hurry to introduce its surprising new coffee product, “Via,” this month. What’s so unusual about Via?

• It contains no actual coffee
• It’s clear, like water
• It’s instant coffee
• It costs $10 per cup

Correct answer: It’s instant coffee. According to Starbucks CEO Howard Schultz, the company has been working on instant coffee technology for 16 years. Twelve packets of Via Ready Brew will cost $9.95, compared to an 8-ounce cup of Starbucks brewed coffee, which costs $1.50.

4. To save money, the Postmaster General has asked Congress for permission to do what?

• Restrict the frequency of “junk mail”
• Put President Obama’s image on a stamp
• Embed computer chips in stamps
• Cut mail delivery to 5 days a week

Correct answer: Cut mail delivery to 5 days a week. Cut mail delivery to 5 days a week. Due to a decrease in mail volume (fueled by increased Internet use) and an increase in costs, the postal service was $2.8 billion in the red last year. Because the service has a mandate to deliver mail 6 days a week, Postmaster General John E. Potter needs Congressional approval to lift that requirement.

5. Jeffrey Immelt, CEO of what Fairfield, CT-based conglomerate, will have to squeak by on a mere $5.7 million in 2008 compensation, having passed up any bonus?

• General Electric
• General Motors
• General Automotive
• General Tso

Correct answer: General Electric.  In 2008 GE’s earnings were down 22% and its shares lost more than half their value. In 2007, GE paid Immelt a total of $14.2 million, which included a $5.8 million bonus. Immelt’s total 2008 compensation of $5.7 million included his $3.3 million base salary, plus perks and benefits, but no bonus.