People often joke about Americans and their lack of knowledge when it comes to basic geography.
From my experience this comedy segment is not far fetched, I doubt they had to discard too many of the interviewed students in order to get a few humourous responses.
Just this last summer I was talking to a seemingly intelligent man, in his mid 30's, that was unaware that the UK was Great Britain, and that it was on a different continent to North America, and that you could not just get into a car and drive there!