Question 1

Most new stadiums and arenas for professional sports teams are privately built,without support from local taxpayers.

Accepted Answer

A) True 
 B)False

Question 2

The immobility of players between teams and the athletes' highly specialized skills generate monopsony power for professional sports clubs.

Accepted Answer

A) True 
 B)False

Question 3

Monopsony profit is the difference between a worker's MRP and the MCL.

Accepted Answer

A) True 
 B)False

Question 4

Prices and output are greater with a cartel than under competition.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true?

Accepted Answer

A)   From an economic perspective, most professional athletes do not earn their pay
B)   Salaries in any industry reflect labor's contribution to the overall health and well-being of society
C)   Professional sports clubs operate in highly competitive product and resource markets
D)   The cartel behavior of professional sports leagues keeps ticket prices low
E)   The salary of a professional athlete reflects his contribution to his employing club's revenue

Question 6

Professional sports leagues do not regulate the employment of players by member teams.

Accepted Answer

A) True 
 B)False

Question 7

As it becomes easier for professional football players to become free agents,NFL salaries are likely to increase over timE.

Accepted Answer

A) True 
 B)False

Question 8

College athletes who enter the major leagues are always hired by the team that is willing to pay the highest salary.

Accepted Answer

A) True 
 B)False

Question 9

The Following Questions Refer to the graph below. 1 B) W2 C) W3 D) W4 E) A wage above W4" class="answers-bank-image d-inline" rel="preload" >
-If this labor market is competitive,what wage will workers be paid?

Accepted Answer

A)  W1
B)  W2
C)  W3
D)  W4
E)  A wage above W4

Question 10

If a cartel discovers that its marginal revenue is greater than its marginal cost of production,the cartel should

Accepted Answer

A)  Increase production
B)  Shut down
C)  Reduce production
D)  Hire fewer workers
E)  Increase the number of cartel members

Question 11

The shortage of teams in professional sports is the primary reason that teams relocatE.

Accepted Answer

A) True 
 B)False

Question 12

When a player is drafted by a team,that team acquires the "property rights" to the player's employment contract.

Accepted Answer

A) True 
 B)False

Question 13

Economic analysis suggests that a free agent baseball player will earn less than an equally talented player who is not a free agent.

Accepted Answer

A) True 
 B)False

Question 14

A labor union

Accepted Answer

A)  Bargains on behalf of all workers
B)  Conducts lock-outs as a bargaining tool
C)  Is concerned with salaries rather than work conditions
D)  Does all of the above
E)  Does none of the above

Question 15

Professional sports leagues,like the NFL,were formed by teams in an effort to earn greater profits and to ensure survival.

Accepted Answer

A) True 
 B)False

Question 16

The Following Questions Refer to the graph below. 
-What wage will maximize this firm's economic profit?

Accepted Answer

A)  $500
B)  $800
C)  $1,000
D)  Less than $1,000 but greater than $0
E)  $0

Question 17

Professional sports clubs differ from most other business firms in their

Accepted Answer

A)  Organizational structure and relationship with employees
B)  Location and emphasis on the competitive spirit
C)  Ownership and profitability
D)  Legal status as corporations and limited tax liability
E)  Ability to operate in both the product and resource market

Question 18

Which of the following is a work stoppage initiated by management?

Accepted Answer

A)  Lockout
B)  Strike
C)  Mediation
D)  Arbitration
E)  Monopsony

Question 19

The economic factors that cause professional sports leagues to expand also cause some existing teams to relocatE.

Accepted Answer

A) True 
 B)False

Question 20

Tickets and broadcast rights to baseball games are bought and sold in the product market.

Accepted Answer

A) True 
 B)False

Exam 9: The Economics of Professional Sports: What Is the Real Score

As it becomes easier for professional football players to become free agents,NFL salaries are likely to increase over timE.

Correct AnswerverifiedShow Answer

The economic factors that cause professional sports leagues to expand also cause some existing teams to relocatE.

Correct AnswerverifiedShow Answer

A labor union

Correct AnswerverifiedShow Answer

Tickets and broadcast rights to baseball games are bought and sold in the product market.

Correct AnswerverifiedShow Answer

The immobility of players between teams and the athletes' highly specialized skills generate monopsony power for professional sports clubs.

Correct AnswerverifiedShow Answer

When a player is drafted by a team,that team acquires the "property rights" to the player's employment contract.

Correct AnswerverifiedShow Answer

Which of the following is a work stoppage initiated by management?

Correct AnswerverifiedShow Answer

Professional sports clubs differ from most other business firms in their

Correct AnswerverifiedShow Answer

Professional sports leagues,like the NFL,were formed by teams in an effort to earn greater profits and to ensure survival.

Correct AnswerverifiedShow Answer

Monopsony profit is the difference between a worker's MRP and the MCL.

Correct AnswerverifiedShow Answer

Prices and output are greater with a cartel than under competition.

Correct AnswerverifiedShow Answer

Economic analysis suggests that a free agent baseball player will earn less than an equally talented player who is not a free agent.

Correct AnswerverifiedShow Answer

Most new stadiums and arenas for professional sports teams are privately built,without support from local taxpayers.

Correct AnswerverifiedShow Answer

Professional sports leagues do not regulate the employment of players by member teams.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

College athletes who enter the major leagues are always hired by the team that is willing to pay the highest salary.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -If this labor market is competitive,what wage will workers be paid?

Correct AnswerverifiedShow Answer

If a cartel discovers that its marginal revenue is greater than its marginal cost of production,the cartel should

Correct AnswerverifiedShow Answer

The shortage of teams in professional sports is the primary reason that teams relocatE.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -What wage will maximize this firm's economic profit?

Correct AnswerverifiedShow Answer

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