Question 1

The draft lottery was created in the NBA to

Accepted Answer

A) eliminate the incentive to lose on purpose in order to guarantee a better draft position. 
B) create a chance for good teams to get better. 
C) add excitement to the post-season. 
D) add excitement to the pre-season. 
A) eliminate the incentive to lose on purpose in order to guarantee a better draft position. 
B) create a chance for good teams to get better. 
C) add excitement to the post-season. 
D) add excitement to the pre-season.

Question 2

The sport where free agency first dominated was

Accepted Answer

A) baseball. 
B) soccer. 
C) football. 
D) hockey. 
A) baseball. 
B) soccer. 
C) football. 
D) hockey.

Question 3

In the era of free agency, small market franchises in baseball

Accepted Answer

A) can only make money when they win games. 
B) will lose money regardless of whether they win games. 
C) often must choose between making money and winning games. 
D) will make money whether or not they win games. 
A) can only make money when they win games. 
B) will lose money regardless of whether they win games. 
C) often must choose between making money and winning games. 
D) will make money whether or not they win games.

Question 4

The biggest factor in separating out baseball teams in terms of revenues is

Accepted Answer

A) ticket sales. 
B) local television contracts. 
C) the cost of living in the city. 
D) memorabilia sales. 
A) ticket sales. 
B) local television contracts. 
C) the cost of living in the city. 
D) memorabilia sales.

Question 5

The suggestions that have been made to allow small-market baseball teams to compete include

Accepted Answer

A) a salary cap. 
B) expansion to smaller cities. 
C) revenue sharing. 
D) both a salary cap and revenue sharing. 
A) a salary cap. 
B) expansion to smaller cities. 
C) revenue sharing. 
D) both a salary cap and revenue sharing.

Question 6

During the labor dispute of 2011, the NFL players used which of the following tactics to prevent the teams from succeeding in their lockout?

Accepted Answer

A) Decertifying their union 
B) Forming a players-owned league 
C) Striking 
D) Signing with Canadian teams 
A) Decertifying their union 
B) Forming a players-owned league 
C) Striking 
D) Signing with Canadian teams

Question 7

Major westward moves in sports franchises began in earnest in the major sports in

Accepted Answer

A) the 1950s with two New York teams (the Dodgers and the Giants)moving to California. 
B) 1969 with the Seattle Pilots as an expansion team. 
C) 1972 with the Washington Senators becoming the Texas Rangers. 
D) 1922 with the Boston Braves moving to Atlanta. 
A) the 1950s with two New York teams (the Dodgers and the Giants)moving to California. 
B) 1969 with the Seattle Pilots as an expansion team. 
C) 1972 with the Washington Senators becoming the Texas Rangers. 
D) 1922 with the Boston Braves moving to Atlanta.

Question 8

The era of free agency brought salaries closer to

Accepted Answer

A) the marginal revenue product of players. 
B) the reservation wage of players. 
C) their long run average. 
D) their universally agreed-upon, morally justifiable level. 
A) the marginal revenue product of players. 
B) the reservation wage of players. 
C) their long run average. 
D) their universally agreed-upon, morally justifiable level.

Question 9

Which major sports' players were locked out during 2011 (whether or not the season was affected)?

Accepted Answer

A) Baseball and football 
B) Football and basketball 
C) NASCAR and the IRL 
D) Hockey and soccer 
A) Baseball and football 
B) Football and basketball 
C) NASCAR and the IRL 
D) Hockey and soccer

Question 10

Suppose your community is considering using public money to build a new sports stadium for a new team that will only stay in the community if it is built for them. Suppose you are watching a news broadcast in which the supporters are saying that it is a good idea because, even though they don't go to the games, it is more fun to live in a town with a team and it is to live in a town without a team. The supporters are relying on the

Accepted Answer

A) stupidity of voters. 
B) externality argument. 
C) local substitution argument. 
D) present value argument. 
A) stupidity of voters. 
B) externality argument. 
C) local substitution argument. 
D) present value argument.

Question 11

In terms of an economic contribution, building a football stadium

Accepted Answer

A) to attract a team has always been a successful strategy in growing an community's economy. 
B) to keep a team that would otherwise leave has always been a successful strategy in growing an community's economy. 
C) with public dollars has never been shown to enhance a community's economy. 
D) has been shown to be futile. The team leaves anyway. 
A) to attract a team has always been a successful strategy in growing an community's economy. 
B) to keep a team that would otherwise leave has always been a successful strategy in growing an community's economy. 
C) with public dollars has never been shown to enhance a community's economy. 
D) has been shown to be futile. The team leaves anyway.

Question 12

The use of public money to attract baseball spring training sites

Accepted Answer

A) has no economic rationale. 
B) makes sense because such sites attract many tourists to that location during the months of February and March when those tourists might go elsewhere to follow their team if the money is not spent on a facility. 
C) suffers from exactly the same logical problem (of local substitution)that the use of public money to keep an NFL team suffers from. 
D) is always warranted just like building an NFL facility is always warranted. 
A) has no economic rationale. 
B) makes sense because such sites attract many tourists to that location during the months of February and March when those tourists might go elsewhere to follow their team if the money is not spent on a facility. 
C) suffers from exactly the same logical problem (of local substitution)that the use of public money to keep an NFL team suffers from. 
D) is always warranted just like building an NFL facility is always warranted.

Question 13

Franchises with the lowest team revenues in their league

Accepted Answer

A) make it into the playoffs much more often than other teams. 
B) build the largest number of luxury suites, due to the intense loyalty of their diehard fans. 
C) usually find it difficult both to win and make money in the same season. 
D) sign by far the most talented players among the free agents. 
A) make it into the playoffs much more often than other teams. 
B) build the largest number of luxury suites, due to the intense loyalty of their diehard fans. 
C) usually find it difficult both to win and make money in the same season. 
D) sign by far the most talented players among the free agents.

Question 14

Under a reserve clause structure the wage paid to a professional athlete is likely to be close to his

Accepted Answer

A) reservation wage. 
B) marginal revenue product. 
C) average compensation. 
D) deadweight loss. 
A) reservation wage. 
B) marginal revenue product. 
C) average compensation. 
D) deadweight loss.

Question 15

The one major sport to have lost an entire season to a work stoppage was

Accepted Answer

A) baseball. 
B) football. 
C) NASCAR. 
D) hockey. 
A) baseball. 
B) football. 
C) NASCAR. 
D) hockey.

Question 16

The least amount of money that a player will accept to play for a team is called the player's

Accepted Answer

A) reservation wage. 
B) marginal revenue product. 
C) average compensation. 
D) minimum wage. 
A) reservation wage. 
B) marginal revenue product. 
C) average compensation. 
D) minimum wage.

Question 17

The use of public money to attract sports entities

Accepted Answer

A) is limited to football. 
B) is overwhelmingly in baseball. 
C) was used by the city of Indianapolis to attract the offices of the NCAA from Kansas City. 
D) is now causing the Master's golf tournament to move to Las Vegas. 
A) is limited to football. 
B) is overwhelmingly in baseball. 
C) was used by the city of Indianapolis to attract the offices of the NCAA from Kansas City. 
D) is now causing the Master's golf tournament to move to Las Vegas.

Question 18

The largest metropolitan area in the United States that has no major league baseball, basketball, football, or hockey franchise is

Accepted Answer

A) Austin, Texas. 
B) Ft. Myers, Florida. 
C) Birmingham, Alabama. 
D) Las Vegas, Nevada. 
A) Austin, Texas. 
B) Ft. Myers, Florida. 
C) Birmingham, Alabama. 
D) Las Vegas, Nevada.

Question 19

The prospective gain per season to an owner from recruiting a new star player is that player's

Accepted Answer

A) marginal cost. 
B) marginal revenue product. 
C) capital value. 
D) reservation wage. 
A) marginal cost. 
B) marginal revenue product. 
C) capital value. 
D) reservation wage.

Question 20

The biggest difference among football teams in terms of revenue-generating capacity is

Accepted Answer

A) luxury box revenue. 
B) local television contracts. 
C) the cost of living in the city. 
D) memorabilia sales. 
A) luxury box revenue. 
B) local television contracts. 
C) the cost of living in the city. 
D) memorabilia sales.

Exam 43: If We Build It, Will They Come and Other Sports Questions

The draft lottery was created in the NBA to

The sport where free agency first dominated was

In the era of free agency, small market franchises in baseball

The biggest factor in separating out baseball teams in terms of revenues is

The suggestions that have been made to allow small-market baseball teams to compete include

During the labor dispute of 2011, the NFL players used which of the following tactics to prevent the teams from succeeding in their lockout?

Major westward moves in sports franchises began in earnest in the major sports in

The era of free agency brought salaries closer to

Which major sports' players were locked out during 2011 (whether or not the season was affected)?

In terms of an economic contribution, building a football stadium

The use of public money to attract baseball spring training sites

Franchises with the lowest team revenues in their league

Under a reserve clause structure the wage paid to a professional athlete is likely to be close to his

The one major sport to have lost an entire season to a work stoppage was

The least amount of money that a player will accept to play for a team is called the player's

The use of public money to attract sports entities

The largest metropolitan area in the United States that has no major league baseball, basketball, football, or hockey franchise is

The prospective gain per season to an owner from recruiting a new star player is that player's

The biggest difference among football teams in terms of revenue-generating capacity is

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

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