Question 1

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.E) A) and C)
F) B) and D)

Question 2

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.E) All of the above
F) A) and C)

Question 3

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.E) C) and D)
F) All of the above

Question 4

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.E) None of the above
F) C) and D)

Question 5

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 soccerE) None of the above
F) C) and D)

Question 6

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.E) All of the above
F) A) and D)

Question 7

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.E) A) and D)
F) A) and B)

Question 8

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.E) None of the above
F) B) and C)

Question 9

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.E) None of the above
F) A) and C)

Question 10

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.E) A) and B)
F) B) and C)

Question 11

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.E) A) and D)
F) A) and C)

Question 12

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.E) B) and D)
F) B) and C)

Question 13

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.E) All of the above
F) A) and B)

Question 14

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.E) All of the above
F) B) and C)

Question 15

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.E) B) and C)
F) A) and D)

Question 16

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.E) B) and C)
F) B) and D)

Question 17

The sport where free agency first dominated was

Accepted Answer

A)  baseball.
B)  soccer.
C)  football.
D)  hockey.E) A) and D)
F) All of the above

Question 18

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.E) A) and B)
F) B) and C)

Question 19

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 teamsE) A) and B)
F) A) and C)

Question 20

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.E) None of the above
F) B) and C)

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

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

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

Correct Answer
verified

Correct Answer
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Franchises with the lowest team revenues in their league

Correct Answer
verified

The use of public money to attract sports entities

Correct Answer
verified

In terms of an economic contribution, building a football stadium

Correct Answer
verified

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

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

Correct Answer
verified

The use of public money to attract baseball spring training sites

Correct Answer
verified

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

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The era of free agency brought salaries closer to

Correct Answer
verified

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

Correct Answer
verified

The sport where free agency first dominated was

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The draft lottery was created in the NBA to

Correct Answer
verified

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Franchises with the lowest team revenues in their league

Correct AnswerverifiedShow Answer

The use of public money to attract sports entities

Correct AnswerverifiedShow Answer

In terms of an economic contribution, building a football stadium

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The use of public money to attract baseball spring training sites

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The era of free agency brought salaries closer to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The sport where free agency first dominated was

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The draft lottery was created in the NBA to

Correct AnswerverifiedShow Answer

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