Question

According to the text (and Forbes Magazine), the total revenues generated by the four major North American sports leagues totaled about _______ in 2010.

$21 billion

$200 billion

$2.1 billion

$200 million

Opportunity Cost is best defined as...

a. The benefits or costs that you convey to a third party from performing a task.

b. the value of the next best thing you could have done with your time/resources.

c. The monetary cost of doing something.

d. The cost to society of you performing a task.

Which topic would best be considered the study of Industrial Organization?

a. The study of how a firm in a market with many close competitors maximizes profit

b. The study of how wages and employment are determined in an industry.

c. The study of how a local government uses taxes and subsidies to keep a sports franchise.

d. The study of how labor unions organize and manage to drive up wages in an industry.

4. Which example is best associated with the field of Public Finance?

a. The study of how a firm in a market with many close competitors maximizes profit.

b. The study of how a local government uses taxes and subsidies to keep or attract a sports franchise.

c. The study of how labor unions organize and manage to drive up wages in an industry.

d. The study of how wages and employment are determined in an industry.

5. Which example is best associated with the field of Labor Economics?Which example is best associated with the field of Labor Economics?

a. The study of how lottery winnings are used to fund the construction of a new stadium and whether or not such a system is progressive or regressive.

b. Examining how wages and employment in the NFL compares to that in Major League Baseball.

c. Studying the optimal number of teams to have in the league to maximize league-wide revenue.

d. Studying the best type of tax system to use in order to fund a new stadium.

6. You hold a comparative advantage over someone else in performing a task...

a. If you can perform that task at a lower opportunity cost.

b. if you are simply better at performing that task than the other person.

c. If performing that task comes easier to you than it does the other person.

d. If you have a stronger preference in performing that task than the other person.

Answer 1

Answer to Q.1 is a. 21 billion

Answer to Q.2 is b - The vvalue of the next best thing you could have done with your time/resources.

Explanation - Opportunity cost the loss of other alternatives when one alternative is chosen.

Answer to Q.3 is b The study of how a firm in a market with many close competitors maximizes profit.

Explanation - An industrial organization is a field of economics dealing with the strategic behavior of firms, regulatory policy, antitrust policy and market competition

Answer to Q.4 is b he study of how a local government uses taxes and subsidies to keep or attract a sports franchise.

Explanation - Public finance is the study of the role of the government in the economy. It is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.

Answer to Q.5 is c.Studying the optimal number of teams to have in the league to maximize league-wide revenue.

Explanation - Labour economics looks at the suppliers of labour services (workers) and the demanders of labour services (employers), and attempts to understand the resulting pattern of wages, employment, and income

Answer to Q 6 is a - If you can perform that task at a lower opportunity cost.

Comparative advantage is an economic law referring to the ability of any given economic actor to produce goods and services at a lower opportunity cost than other economic actors.