Econ 330 Final Exam Quizzies

What is the typical maximum size of a Major League Baseball (MLB) active roster during the regular season? 20 players 40 players 30 players 26 players

26 players

An NFL team that loses three UFA and signs two UFA will receive? A compensatory pick A regular draft pick A supplemental draft pick A competitive balance draft pick

A compensatory pick

Which of the following best describes a personal seat license (PSL): The price is based on the cost of a season ticket. The price is based on the present value of a season ticket A season ticket that includes a specific seat assignment. A license to a specific seat

A license to a specific seat

How is the order of selection determined in the MLB draft? A lottery determines the first 6 picks, the remaining slots are determined by reverse order Based on the previous season's win-loss records, the team with the worst record picking first. All 30 teams are put into a lottery system to determine the draft order A lottery determines the first 10 picks, the remaining slots are determined by reverse order

A lottery determines the first 6 picks, the remaining slots are determined by reverse order

In Major League Baseball (MLB), what is one of the primary qualifications that a player must meet to be eligible for salary arbitration? A minimum of three service years Leading the league in home runs during the previous season. He was named an All-Star in the rookie season. At least six service years

A minimum of three service years

What could cause the honeymoon effect? A new stadium does not mask the quality of play A new stadium increases the quality of play Increase in attendance An increase in the team's payroll

A new stadium does not mask the quality of play

In the NHL, what is the 27 or 7 benchmark? A player becomes an unrestricted free agent after 27 NHL games or 7 accrued seasons A player becomes an unrestricted free agent after they turn 27 years old or earns 7 accrued seasons A player becomes a restricted free agent after 27 NHL games or 7 accrued seasons A player becomes an unrestricted free agent after they turn 27 years old or earn 7 accrued seasons

A player becomes an unrestricted free agent after they turn 27 years old or earn 7 accrued seasons

Chapter 7 and Chapter 8 In the NBA, Which of the following is NOT true about Bird rights? A player's bird rights do not reset after a player is traded A player's bird rights reset if a player signs with a new team during free-agency A player's bird rights do not reset if they are renounced from their team In a trade, the new team acquires the player's bird rights

A player's bird rights do not reset if they are renounced from their team

Which of the following is true about a bilateral monopoly? All of the above are true The players function as a monopoly The league functions as a monopsony The outcome (CBA) from negotiations is based on which side has the most bargaining power (league or players)

All of the above are true

Which of the following is true about the NBA salary cap: Teams must spend 90% of the cap All of the answer choices provided are correct The cap is based on 44.74% of BRI Players are guaranteed approximately 49% to 51% of league revenues.

All of the answer choices provided are correct

In the NBA, which of the following is true about Rookie Scale Contracts? The contract value can range from 80% to 120% of the draft pick value All of the answer choices provided are true They are offered to first-round draft picks The team has an option for year 3 and year 4

All of the answer choices provided are true

In the NBA, which of the following is true if the team's payroll exceeds the first apron threshold: Limited use of the sign-and-trade exception All of the answer choices provided are true The team will pay a financial penalty The team will incur roster-building penalties

All of the answer choices provided are true

In the NHL, which of the following is true about restricted free agency? It is based on the age of the player A team that loses a restricted free agent will be compensated with a draft pick A restricted free agent can seek salary arbitration All of the answer choices provided are true

All of the answer choices provided are true

Which of the following is true about the MLB competitive balance tax? If a team is $20-$40 million over the threshold they have to pay an additional 12% surcharge The tax rate rises each season a team exceeds the tax threshold All of the answer choices provided are true If a team is $40+ million over the threshold the team's Rule 4 draft pick is moved down 10 spaces.

All of the answer choices provided are true

Which of the following is true about the franchise tag in the NFL? Hide answer choices All of the answer choices provided are true If it's a transition tag, the player will be paid based on the average of the top 10 players at his position or 120% of the previous salary. The player will be paid based on the average of the top five salaries at his position or 120% of the previous year's salary. If it's a non-exclusive tag, the player can get offers from other teams and the existing team has the right to match that offer or receive two first-round draft picks.

All of the answer choices provided are true

chapter 10 What conditions would prevent you from using the standard deviation coefficient to measure competitive balance across multiple seasons? The NBA added the three-point shooting line. All of these conditions would prevent you from using the standard deviation across multiple seasons The NHL strike reduced the number of games to 41 The NFL has increased the number of games to 17.

All of these conditions would prevent you from using the standard deviation across multiple seasons

What are some key issues in the MLB CBA negotiations? Service time suppression All the answer choices are correct The number of teams in the playoffs Competitive balance tax Draft format

All the answer choices are correct

Which of the following is true about an NFL unrestricted free agent? The existing team can tender an offer by June 1st, however, the team does not have the first right of refusal If the player is not signed by July, the player's rights return to the existing team If the existing team does not tender an offer by June 1st, the player can sign with any team at any point during the season All the answer choices are true

All the answer choices are true

In the NBA, which of the following is one of the categories in the designated player rule? All the answer choices provided are correct Designated veteran extension Designated veteran contract Designed rookie extension

All the answer choices provided are correct

Which of the following are the external benefits of hosting a professional team? All the answer choices provided are correct Media reporting on the events Economic impact Commonality/Public Good

All the answer choices provided are correct

Which of the following is an argument against the public funding of stadiums: Money could be used for education and infrastructure. Money is being spent to help billionaires. The biggest impact is on the local economy. All the answer choices provided are correct

All the answer choices provided are correct

In the NBA, how are minimum salaries determined? Based on what round the player was drafted Based on the number of years with their current team Based on the number of NBA service years Based on the age of the player

Based on the number of NBA service years

Which of the following best describes final-offer arbitration: The arbitrator presents their own legally binding solution. Both parties present an offer and the arbitrator picks one. Both parties present an offer and the arbitrator picks one or comes up with an alternative solution. Both parties present an offer and the mediator picks one.

Both parties present an offer and the arbitrator picks one.

The NFL's G4 loan program was designed to: Designed to help small market teams win more lucrative stadium deals from host cities. Designed to prevent large market teams from moving to aggressive mid-markets for more lucrative stadium deals. Designed to prevent small market teams from moving to aggressive mid-markets for more lucrative stadium deals. Designed to help teams from mid-markets relocate to larger markets with more lucrative stadium deals. Help small market teams finance the cost of their stadium.

Designed to prevent large market teams from moving to aggressive mid-markets for more lucrative stadium deals

Which of the following is one of the problems in calculating a player's MRP? Knowing the player's wage rate Determining what the players produce Knowing the player's marginal benefit Understanding the player's marginal cost

Determining what the players produce

What is the primary purpose of the MLB Prospect Promotion Incentive? Discourage service time manipulation Award the rising prospects with a higher salary Discourage sending a rookie to the minor leagues Encourage promoting rookies to the 40-man roster

Discourage service time manipulation

How can an MLB team 'reset' their competitive balance tax rate? Drop below the competitive balance tax threshold for at least one year Pay a tax penalty in excess of tax due and the tax rate will be reset. Pay the current tax and next year the rate will be reset. Miss the competitive balance tax threshold for at least two years

Drop below the competitive balance tax threshold for at least one year

In a binomial distribution: The number of trials is unlimited. The outcomes are continuous and not discrete. Each trial can result in multiple outcomes. Each trial has exactly two possible outcomes

Each trial has exactly two possible outcomes

What is the primary distinction between economic profit and accounting profit? Accounting profit takes into account inflation, while economic profit is adjusted for fluctuations in the market. Economic profit includes taxation and depreciation, while accounting profit excludes these elements. Economic profit considers both explicit and implicit costs, while accounting profit considers only explicit costs. Accounting profit considers both explicit and implicit costs, while economic profit considers only explicit costs.

Economic profit considers both explicit and implicit costs, while accounting profit considers only explicit costs.

In the context of market size and competitive balance, which of the following is NOT one of the primary areas of disagreement? How to characterize the market size How to measure the impact of policies designed to alter competitiveness, such as revenue sharing. What to use as a measure of success. How to measure a team's market power

How to measure a team's market power

In the NBA, when does a player become a restricted free agent? After the player earns three service years When a first-round draft pick's rookie contract expires after the fourth year If a first-round draft pick does not receive a rookie extension from their existing team After the player earns six service years

If a first-round draft pick does not receive a rookie extension from their existing team

Which of the following is NOT a component of the MLB competitive balance tax: If a team is $20-$40 million over the threshold they have to pay an additional 12% surcharge If the team is $60+ million over the threshold, they lose their next two first-round picks If a team is $40+ million over the threshold the team's Rule 4 draft pick is moved down 10 spaces. If a team is $60+ million over the threshold, they have to pay an additional 60% surcharge The tax rate rises each season a team exceeds the tax threshold

If the team is $60+ million over the threshold, they lose their next two first-round picks

What does the non-statutory labor exemption provide in labor law? Immunity for certain union activities from antitrust laws. Exemption from mandatory reporting requirements for unions. Exemption from specific tax regulations for labor organizations. Immunity for labor unions from all legal actions.

Immunity for certain union activities from antitrust laws.

What were some of the key changes to the CBA after the 2011 lockout? Lower minimum salaries Improved player safety Reduced revenue sharing No rookie salary cap

Improved player safety

Why must the leagues intervene to promote competitive balance? So the league can expand its market share In the absence of revenue sharing, the financial return on investing in talented players is likely greater for teams from large cities. Fans prefer if their team has at least a 90% chance of winning Due to revenue sharing, the financial return on investing in talented players is likely greater for teams from large cities.

In the absence of revenue sharing, the financial return on investing in talented players is likely greater for teams from large cities.

Which of the following is NOT a category of free agents in the NFL? Exclusive rights free agents Injured-reserve free agents RFA and UFA Compensatory free agents

Injured-reserve free agents

What is the standard deviation in statistics? It calculates the total sum of a dataset. It identifies the highest value in a dataset. It represents the average of a set of data points. It measures the spread or dispersion of data points in a dataset.

It measures the spread or dispersion of data points in a dataset.

Which of the following is NOT true about the present value method It only uses team payroll in the calculation A drawback could include biased assumptions It calculates the present value of future cash flows The calculation relies on an economic impact study, which may include substitute spending

It only uses team payroll in the calculation

Which of the following statements best represents the Coase Theorem in economics? It emphasizes that private ownership of resources always leads to inefficiencies in resource allocation. It suggests that parties can negotiate and find a mutually beneficial solution to externalities, regardless of legal property rights. It proposes that externalities are inevitable and cannot be addressed through economic means. It asserts that externalities can always be efficiently resolved through government intervention

It suggests that parties can negotiate and find a mutually beneficial solution to externalities, regardless of legal property rights.

Why would a team decertify their labor union? It would remove the statutory labor exemption, so each player could negotiate their contract with the team. It would remove the statutory labor exemption, so they could sue the league for antitrust violations. It would remove the statutory labor exemption, so they would be exempt from antitrust lawsuits from the league. It would remove the statutory labor exemption, so they could then sign with any team.

It would remove the statutory labor exemption, so they could sue the league for antitrust violations.

Which of the following would be considered a specific skill? Developing offensive skills Learning your team's offensive and defensive schemes Learning the fundamentals of teamwork Having a clear understanding of the rules

Learning your team's offensive and defensive schemes

Which of the following is a method a team owner can use to fund a new stadium? Issue municipal bond Hotel taxes TIF Loan from the owner

Loan from the owner

Compared to the other leagues, why does the NBA have the highest average player salary? MB is higher than the other leagues. MC is higher than the other leagues. MP is higher than the other leagues. MR is the higher than the other leagues

MP is higher than the other leagues.

Which of the following leagues has a soft salary cap? All except the NFL have a soft cap. NBA NHL NFL MLB

NBA

In the NFL, what is the Top-51 Rule? Only top-51 salaries count against the cap in the offseason. Only top-51 salaries count against the salary cap during the playoffs Only top-51 player salaries count against the salary cap during the regular season Only top-51 salaries count against the cap in revenue sharing.

Only top-51 salaries count against the cap in the offseason.

Why study competitive balance? The league gets less financial reward if different teams win Fans prefer limited competition Owners get more financial rewards if the team is successful but does not always win. Team profits are higher if they always win

Owners get more financial rewards if the team is successful but does not always win.

Chapter 9 How does an NFL player earn an accrued season? Play in three regular-season games None of the above Play in six regular season games Play in half of the regular season games

Play in six regular season games

Which aspect of the NHL (National Hockey League) is most directly affected by exchange rate fluctuations? Player contracts and salaries. Game scheduling and team travel arrangements. Ticket prices Arena maintenance and facilities.

Player contracts and salaries.

If the Canadian dollar increases from C$1.31 to C$1.41 per U.S. dollar, what impact will that have on a Canadian team's payroll? Canadian teams become more competitive Players will become more expensive Players will become cheaper Ticket prices decrease

Players will become more expensive

What impact will a weaker Canadian dollar (vs. U.S. dollar) have on a Canadian NHL team? Canadian teams become more competitive Players will become more expensive Players will become cheaper Ticket prices decrease

Players will become more expensive

The rationale for public funding of a stadium is based on: There are no negative externalities Negative externalities being greater than positive externalities Positive externalities equalling negative externalities Positive externalities being greater than negative externalities

Positive externalities being greater than negative externalities

Which of the following is not one of the three types of contingent valuation surveys? Close-ended survey Real estate appraisal Bracketed survey Open-ended survey

Real estate appraisal

Why do hotel owners object to hotel taxes? It does not raise enough money to fund a facility Some of the tax is paid by local hotels All the answer choices provided are correct There is no horizontal equity

Some of the tax is paid by local hotels

Which of the following are the reasons stadium costs have risen so dramatically? The cost of financing is higher Stadiums require more private financing Stadiums have a large footprint Stadiums receive less taxpayer money

Stadiums have a large footprint

Which of the following would be considered a user fee? Taxes on gas Taxes on cigarettes Taxes on hotels Taxes on tickets

Taxes on tickets

Which of the following is a key requirement under the NFL's G4 program for stadium construction and renovation funding? Teams are not required to contribute any funds to the project. Only NFL teams in small markets are eligible to apply for G4 funding. The NFL covers 100% of the project costs. Teams must secure a public-private partnership for stadium funding.

Teams must secure a public-private partnership for stadium funding

In Major League Baseball (MLB), what do "10-5 rights" refer to? The eligibility criteria for players to qualify for salary arbitration The "no trade" rights granted to a player who has been in the league for 10 years, with the last 5 being with the same team. The eligibility criteria for players to become restricted free agents The eligibility criteria for players to become unrestricted free agents

The "no trade" rights granted to a player who has been in the league for 10 years, with the last 5 being with the same team.

Based on the binomial distribution, which league should have the lowest standard deviation: The MLB, which plays in 162 games The NBA, which plays in 82 games The NFL, which plays in 17 games All the leagues should have the same standard deviation

The MLB, which plays in 162 games

In sports economics, the Marginal Revenue Product (MRP) of a player is: The salary paid to a player after considering endorsements and bonuses. The total revenue earned by a team from ticket sales in a season. The revenue earned by a player through personal merchandise sales. The additional revenue generated by a player's contribution to the team's performance.

The additional revenue generated by a player's contribution to the team's performance.

How does 'final offer arbitration' restore the incentive to compromise? Mediators will always pick the highest offer, so teams/players compromise at more reasonable levels The arbitrator has to accept one offer, thus teams/players' offers tend to be very close to each other The arbitrator will always pick the highest offer, so teams/players compromise at more reasonable levels The mediator has to accept one offer, thus teams/players' offers tend to be very close to each other

The arbitrator has to accept one offer, thus teams/players' offers tend to be very close to each other

Why did most teams find it better not to sign free agents under the Rozelle Rule? The compensation to the previous team made free agents too expensive. Teams were required to match the offer of the previous team. Free-agent salaries were too high. The free-agent contracts were too long.

The compensation to the previous team made free agents too expensive

What does a low standard deviation indicate in a dataset? The data points are closely clustered around the mean. The data points are perfectly symmetrical around the mean. The data points have a strong positive correlation with each other. The data points are spread out over a wide range from the mean.

The data points are closely clustered around the mean.

What is the central concept of "induced spending" in the context of economic impact? The direct revenue generated by an industry from its primary products. The economic activity created in the local community when people employed by a sports team or local hotel spend their earnings on various goods and services. The initial expenditure on goods and services by consumers. The total spending by businesses on their core operations.

The economic activity created in the local community when people employed by a sports team or local hotel spend their earnings on various goods and services.

Why did the Brooklyn Dodgers move to L.A.? The team was not profitable in Brooklyn All the answer choices provided are correct The economic profit in L.A. was higher than in Brooklyn The team was not winning in Brooklyn

The economic profit in L.A. was higher than in Brooklyn

What does "value-added" typically represent in economic impact analysis? The net profit earned by a company after deducting all costs and expenses. The total expenses incurred by a company in producing goods or providing services. The increase in GDP as a result of the direct spending The total revenue generated by a business from its operations.

The increase in GDP as a result of the direct spending

In the NHL draft, which of the following is NOT true: A team can only win the lottery two times in five years After the lottery, the draft picks are based on reverse order The most a team can move up in the lottery is 10 picks Only teams that did not make the playoffs are eligible for the lottery The lottery establishes the first six spots

The lottery establishes the first six spots

What does the NFL rookie salary cap primarily regulate? The maximum total salary a team can allocate to its rookie players. The maximum number of rookies a team can sign in a single season. The maximum number of years a rookie can be under contract with a team. The minimum salary that a rookie player can earn in their first season.

The maximum total salary a team can allocate to its rookie players.

Why have a salary cap minimum? The minimum payroll values prevent teams from substantially under-investing in talent. The minimum payroll values prevent large market teams from substantially over-investing in talent. The minimum payroll prevents one team from substantially over-investing in talent. Salary caps do not have minimum salaries

The minimum payroll values prevent teams from substantially under-investing in talent

Explain the relationship between binomial distribution and competitive balance. The more games in a season the more competitively balanced the league becomes. The more revenue distributed the more competitively balanced the league becomes. The more games in a season the less competitively balanced the league becomes. The more teams in the league the less competitively balanced the league becomes.

The more games in a season the more competitively balanced the league becomes.

Why can't you use the standard deviation to compare the NFL to the NBA The rules are not the same Leagues have different amount of teams Large market teams may dominate the league The number of games must be constant

The number of games must be constant

The biggest impact of a new stadium is typically: The number, size, and price of luxury boxes An increase in concession revenue An increase in team payroll An increase in attendance

The number, size, and price of luxury boxes

How does a player qualify for salary arbitration in MLB? Over four years of experience The player can qualify as a Super-2 If they were part of the Rule 4 draft If they were part of the Rule 5 draft

The player can qualify as a Super-2

How does an MLB player earn a service year? The player must be on the 26-man roster for at least 172 days The player must be on the 26-man roster for 81 regular season games The player must be on the 40-man roster for at least six regular season games The player must be on the 40-man roster for at least 172 days

The player must be on the 26-man roster for at least 172 days

Which of the following is NOT true about a restricted free agent in the NFL: If no qualifying offer is received, the player becomes an unrestricted free agent. The player must receive a qualifying tender offer from their current team The player must have more than three accrued seasons in the league The player's contract cannot have a first-round tender option.

The player's contract cannot have a first-round tender option.

Which of the following is true about the last NHL lockout? Many players signed contracts with international teams The players did not decertify the union The last lockout was in 1997 The regular season was not shortened

The players did not decertify the union

Which of the following occurred during the NBA's 2011 CBA negotiations? The players went on strike The players filed an antitrust lawsuit against the NBA The season was canceled Minimum salaries were reduced

The players filed an antitrust lawsuit against the NBA

In labor negotiations, what does the term "threat point" refer to? The point at which negotiations become amicable, and both parties reach a mutually beneficial agreement. The point where a labor union decides to go on strike if their demands are not met. The deadline by which labor negotiations must be completed to avoid legal consequences. The minimum acceptable outcome for a negotiating party is beyond which they are willing to walk away from the negotiation.

The point where a labor union decides to go on strike if their demands are not met.

Which of the following is NOT true about the NFL draft? The league uses a reverse-order draft The supplemental draft happens every year The supplemental draft includes NCAA players who have exhausted their NCAA eligibility The reverse-order draft happens every year

The supplemental draft happens every year

What does the term "honeymoon effect" refer to in sports economics? The increase in ticket prices after a sports team moves to a new stadium. The long-term increase in attendance and revenue for a sports team after moving to a new stadium. The long-term decline in attendance and revenue for a sports team after moving to a new stadium. The temporary surge in attendance and revenue for a sports team after moving to a new stadium. The effect of a sports team's success on the local economy.

The temporary surge in attendance and revenue for a sports team after moving to a new stadium.

Chapter 11 and 12 Which of the following best describes "output" in the context of economic impact studies? The measure of the overall economic productivity of a region or industry. The total income earned by a particular company over a given period. The total economic activity generated as a result of direct spending. The amount of goods and services produced by a nation's government sector.

The total economic activity generated as a result of direct spending.

Which of the following is not a drawback to using the contingent valuation method? They are non-binding agreements. Households don't know how to value non-market items They are based on survey questions. They are based on hypothetical actions instead of real actions.

They are based on survey questions

Vertical equity states: Add more taxes when there is a small deadweight loss Those who benefit the most should pay Those with the greatest ability to pay should pay first Equals should be treated like equals

Those with the greatest ability to pay should pay first

What was the main purpose of the NFL's Plan B system, which was used in the late 1980s and early 1990s? To provide an alternative retirement plan for players. To implement a salary cap for all NFL teams. To allow teams to protect a limited number of players from free agency. To regulate player salaries and contracts.

To allow teams to protect a limited number of players from free agency.

In Major League Baseball (MLB), what is the primary purpose of the 40-man roster? To represent the total number of games each team plays in a season. To designate players eligible to be called up to the major league club during the season. To determine the order of the annual MLB Draft. To establish the maximum number of players a team can sign during the offseason.

To designate players eligible to be called up to the major league club during the season.

What is one of the main objectives of implementing sin taxes? To promote competition among businesses in regulated industries. To discourage the consumption of goods or activities that are considered harmful or undesirable. To provide subsidies for industries producing healthy alternatives. To generate tourism revenue

To discourage the consumption of goods or activities that are considered harmful or undesirable

What was the primary purpose of the reserve clause in sports? To limit the number of reserve players on a team To determine the total payroll of a team. To grant teams exclusive rights to their players. To reserve the distribution of teams to large markets

To grant teams exclusive rights to their players.

A contingent valuation is used primarily: To measure the value of 'non-market' goods To determine the present value of a new project To calculate the increase in revenues associated with the new stadium All the answer choices are correct

To measure the value of 'non-market' goods

How is an NFL G4 loan repaid? Visitors share of premium seating revenue A small percentage of the NFL's annual revenue Taxes on local hotels User fee on ticket sales

Visitors share of premium seating revenue

Which of the following best describes the impact of fluctuating exchange rates on the National Hockey League (NHL)? Stronger local currency relative to the U.S. dollar leads to decreased player salaries in the NHL. Exchange rates have no significant impact on the NHL's financial operations. Exchange rates primarily affect the length of the NHL season. Weaker local currency relative to the U.S. dollar can lead to increased player salaries in the NHL.

Weaker local currency relative to the U.S. dollar can lead to increased player salaries in the NHL

When does an NBA team become hard-capped? When they use the bi-annual exception When they use the non-taxpayer mid-level exception When they use all three Bird exceptions When they exceed the luxury tax threshold

When they use the bi-annual exception