Question 1

According to economist Andrew Zimbalist,the Jacksonville Jaguars expansion football team has an economic impact on the local area comparable to a

Accepted Answer

A)  New department store
B)  Major hurricane
C)  Large military installation
D)  State university
E)  City park

Question 2

The National Basketball Association is a cartel.

Accepted Answer

A) True 
 B)False

Question 3

Free agency increases the monopsony power that professional sports teams exert over the players that they hirE.

Accepted Answer

A) True 
 B)False

Question 4

If a player's MRP> MCL,the player should be hired by the team.

Accepted Answer

A) True 
 B)False

Question 5

The Following Questions Refer to the graph below. 1 C) L2 D) L3 E) More than L3" class="answers-bank-image d-inline" rel="preload" >
-If this labor market is competitive,how many workers will be hired?

Accepted Answer

A)  0
B)  L1
C)  L2
D)  L3
E)  More than L3

Question 6

Why does the average professional baseball player earn more than the average doctor?

Accepted Answer

A)  The baseball player has a lower MCL
B)  The doctor has a higher MRP
C)  The baseball player has a higher MRP
D)  There are more professional baseball players than doctors
E)  The demand for baseball is higher than the demand for medical care

Question 7

The marginal cost of labor curve (MCL)represents the change in a firm's total labor cost due to selling an additional unit of output.

Accepted Answer

A) True 
 B)False

Question 8

All professional sports clubs must operate independently to guarantee a competitive economic environment.

Accepted Answer

A) True 
 B)False

Question 9

The additional revenue that a player generates for his employing team is called

Accepted Answer

A)  Total player revenue
B)  Marginal revenue product
C)  Marginal product
D)  Marginal revenue
E)  Monopsonistic revenue product

Question 10

The Following Questions Refer to the graph below. 
-If this labor market is competitive,how many workers will be hired?

Accepted Answer

A)  0
B)  10
C)  12
D)  15
E)  More than 15

Question 11

Approximately what percent of funding for stadium construction and renovation has come from public sources in recent years?

Accepted Answer

A)  1
B)  about 10
C)  less than 20
D)  over 50
E)  nearly 100

Question 12

A resource market with only one buyer of a factor of production is called a(n)

Accepted Answer

A)  Imperfect monopoly
B)  Monopoly
C)  Competitive market
D)  Monopsony
E)  Cartel

Question 13

A firm can maximize its economic position by hiring workers up to the point where MCL = MRP.

Accepted Answer

A) True 
 B)False

Question 14

For a cartel,joint profit is maximized where marginal revenue equals marginal costs.

Accepted Answer

A) True 
 B)False

Question 15

In a product market,

Accepted Answer

A)  Producers sell goods and services
B)  Consumers buy goods and services
C)  Final goods and services are exchanged
D)  All of the above
E)  None of the above

Question 16

The primary benefits of a professional sports team are

Accepted Answer

A)  Massive economic development
B)  Privately funded
C)  Salaries and wages
D)  Intangible
E)  All of the above

Question 17

Salary caps enforce monopsonistic employment of players across teams in a professional sports leaguE.

Accepted Answer

A) True 
 B)False

Question 18

A strike is a work stoppage initiated by management.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following contributes to monopsony power in professional sports?

Accepted Answer

A)  Player mobility
B)  Free agency
C)  Player drafts
D)  All of the above
E)  None of the above

Question 20

A monopoly must face the market supply of labor schedule because it is the only employer in the market.

Accepted Answer

A) True 
 B)False

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

The Following Questions Refer to the graph below. -If this labor market is competitive,how many workers will be hired?

Correct AnswerverifiedShow Answer

A firm can maximize its economic position by hiring workers up to the point where MCL = MRP.

Correct AnswerverifiedShow Answer

For a cartel,joint profit is maximized where marginal revenue equals marginal costs.

Correct AnswerverifiedShow Answer

In a product market,

Correct AnswerverifiedShow Answer

The primary benefits of a professional sports team are

Correct AnswerverifiedShow Answer

According to economist Andrew Zimbalist,the Jacksonville Jaguars expansion football team has an economic impact on the local area comparable to a

Correct AnswerverifiedShow Answer

A strike is a work stoppage initiated by management.

Correct AnswerverifiedShow Answer

The additional revenue that a player generates for his employing team is called

Correct AnswerverifiedShow Answer

If a player's MRP> MCL,the player should be hired by the team.

Correct AnswerverifiedShow Answer

Why does the average professional baseball player earn more than the average doctor?

Correct AnswerverifiedShow Answer

Free agency increases the monopsony power that professional sports teams exert over the players that they hirE.

Correct AnswerverifiedShow Answer

The marginal cost of labor curve (MCL)represents the change in a firm's total labor cost due to selling an additional unit of output.

Correct AnswerverifiedShow Answer

Salary caps enforce monopsonistic employment of players across teams in a professional sports leaguE.

Correct AnswerverifiedShow Answer

The National Basketball Association is a cartel.

Correct AnswerverifiedShow Answer

All professional sports clubs must operate independently to guarantee a competitive economic environment.

Correct AnswerverifiedShow Answer

Approximately what percent of funding for stadium construction and renovation has come from public sources in recent years?

Correct AnswerverifiedShow Answer

A resource market with only one buyer of a factor of production is called a(n)

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -If this labor market is competitive,how many workers will be hired?

Correct AnswerverifiedShow Answer

Which of the following contributes to monopsony power in professional sports?

Correct AnswerverifiedShow Answer

A monopoly must face the market supply of labor schedule because it is the only employer in the market.

Correct AnswerverifiedShow Answer

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