Sports Economics Midterm
Bookies are profitable when they are able to do which of the following? Increased number of bets Lowering of risk Balancing the amount of bets placed on both teams All of the above None of the above
All of the above
Cheating in professional sports is bad for which of the following? Provides unfair advantage for cheating team or player Lowers the integrity of the sports Fans may lose interest in the sport All of the above None of the above
All of the above
How does a sports team obtain revenue? Ticket sales Television and advertisements Merchandise sales All of the above
All of the above
All professional sports have the same drop policy as one-another True False
False
Bookies seek to have gamblers all bet on the same winning or losing sports team True False
False
In professional sports, concern over honesty and integrity is accepted as a major deterrent of cheating True False
False
Individual professional sports teams can dictate which of the following commercials run during their home games True False
False
Professional sports salary caps are designed to limit what an individual player can make True False
False
Selling professional sporting event tickets on StubHub at a price above the face value of the ticket is illegal True False
False
Sports economics views that all NFL teams have an equal competitive balance. True False
False
Sports teams can pay their athletes under the collective bargaining salary level. True False
False
The New England Patriots and the Cleveland Browns would be considered an economic example of competitive advantage. True False
False
Which of the following is not able to formally apply discipline to a professional athlete? The professional sports team National professional sports organization The sports league Fellow athletes All of the above
Fellow athletes
Which of the following is not a real sporting event name? Discover Orange Bowl Chick-Fil-A Peach Bowl Auto-Zone Bowl Pizza Hut Wimbledon Championship Capital One Bowl
Pizza Hut Wimbledon Championship
Which of the following is not a part of the professional sports market? Unions Sports agents Monopsony Bidding Wars Public policy
Public policy
Which of the following does not negatively impact the image of professional sports? Gambling Performance enhancing drugs Television commercials Misconduct by professional players
Television commercials
Which of the following is a benefit from taking risk? Profit Goal Pleasure Utility None of the above
Utility
A multiyear contract best benefits which of the following? The professional athlete The professional sports team The sports fans All of the above
All of the above
Standard professional risk insurance premium is written per; $500,000 $1 to $2 million $10 million $50 million None of the above
$1 to $2 million
Which of the following is an approximate amount spent for sports advertising annually? $1 million $10 million $100 million $7 billion $50 billion
$7 billion
A typical stadium naming rights, such as the Staples Center, corporate is for how many years? 1 year 5 years 15-30 years 50 years None of the above
15-30 years
Which of the following is not a part of the professional sports market? Unions Sports agents Contracts All are a part of the sports labor market
All are a part of the sports labor market
Which of the following is a way to measure competitive balance in professional sports? Noll-Scully mesurement Supply and demand measurement Herfindahl - Hirschman measurement A and B are competitive balance measurements None of the above
A and B are competitive balance measurements
Which of the following can obtain risk insurance on a professional athlete? A professional athlete An advertising agency Sports team owner A and C are true All of the above are true
A and C are true
Which of the following is not a professional sports league? NFL NBA AMA MLB
AMA
Which of the following is a key element of competitive balance? A sports team winning a championship A sports team making it to the playoffs Ability of a professional team to hold their own within a league Ability of a professional team to obtain a star player None of the above
Ability of a professional team to hold their own within a league
Point spreads given on sporting events do which of the following? Determined by each of the sporting teams abilities Are adjusted as games get closer in order to attract more gamblers Are adjusted based upon gamblers place their bets All of the above None of the above
All of the above
Sports advertising does each of the following except Increase profit for the sports teams Increase demand for sporting event tickets Increase demand for set ticket prices Increase demand enough to raise ticket prices All of the above
All of the above
Which of the following is a reason for a city to want a professional sports franchise or major sporting event like the Summer Olympics? Job creation Exposure Income tax revenue Prestige All of the above
All of the above
Which of the following is a way to improve competitive balance in professional sports? Salary caps Luxury tax Revenue sharing Reverse order player drafts All of the above
All of the above
Which of the following is something that can help deter professional athlete misconduct? Benefit of misconduct should not be better than desire for misconduct Follow through with punishment Apply punishment evenly All of the above None of the above
All of the above
Under the concept of the study of sports economics, which of the following is not considered a sport? Football Baseball Hunting All of the above are deemed as a sport
All of the above are deemed as a sport
Which of the following is not a function of a professional sports league? Helps to keep sporting events organized and structured Helps to benefit public ventures and activities Helps to select which players play for which teams Helps to organize which teams play one another and when All of the above are functions of a professional sports league
All of the above are functions of a professional sports league
Which of the following is not part of a professional athlete having a risk aversion? Individual does not accept risk Individual does not like risk Individual will not accept any risk without compensation Individual will sacrifice something in order to reduce risk All of the above are part of having risk aversion
All of the above are part of having risk aversion
Which of the following is not part of the definition of economics? It is a study Allocation of resources Scarcity All of the above are parts of economics
All of the above are parts of economics
Which of the following is not a professional sports revenue source? Concessions Sponsorship and advertising Ticket sales Broadcasting All of the above are revenue sources
All of the above are revenue sources
Which of the following is not true about NFL televised broadcasting? Each professional football club owns their broadcasting rights for home games Each professional football club can sell, not sell, their home game broadcasting rights Professional sports teams can sell their broadcasting rights to either network or cable television stations None of the above All of the above are true
All of the above are true
Which of the following will not likely help to change the probability of detection of professional sports teams cheating? Increased use of outside firms increased number of referees Having professional athlete sign an honesty and integrity please Increase use of video All of the above will help detect cheating
All of the above will help detect cheating
A sports agent typically represents which of the following? An individual player A full team of athletes Only athletes in the NFL Only athletes in the NBA
An individual player
Revenue sharing is designed to do which of the following? Increasing broadcasting purchases for professional sports league Assist professional sports clubs in weak markets Assist professional sports league in broadcasting rights None of the above All of the above
Assist professional sports clubs in weak markets
Which of the following does not provide professional sports team generate revenue? Broadcasting Parking Concessions Athlete contracts
Athlete contracts
Which of the following is not a major product advertised during televised sporting events? Automobiles Drinks Food Baby food Athletic apparel
Baby food
Which of the following antitrust activities does the Sherman Act not address? Prevents structural monopolies Prohibits certain. behaviors of monopolies Prohibits bid rigging Caps professional athlete salaries All of the above are activities addressed in the Act
Caps professional athlete salaries
Which of the following athlete is most likely to obtain Exceptional Student Athlete Disability Insurance? Professional baseball player Professional basketball player College football player Professional golfer All of the above
College football player
Which of the following is a reason for professional sports athletes and sport team owners to use final offer attribution? Player misconduct Do not like the players' sports agent Come to an economic impasse Free agency
Come to an economic impasse
Which of the following is how bookies make money from gamblers making bets? Salary Hourly rate Commission on bets Only from winning teams Only from losing teams
Commission on bets
Which of the following is not an example of cheating to win? Deliberate violation of rules Violate recruiting practices Use of banned performance-enhancing drugs Deliberately throwing a game Use of illegal equipment
Deliberately throwing a game
Which of the following is not part of a city's economic impact study? Identify net consumer spending in the area Identify spending for sporting events Determining what sports are most popular in local high schools Identify incremental spending All of the above are part of an impact study
Determining what sports are most popular in local high schools
Which of the following best describes profit? The sale of the professional sports ticket Income made from the sale of broadcasting rights Income minus professional athlete salaries Difference between total revenue and total costs None of the above
Difference between total revenue and total costs
Before a major city decides to bring in a professional sports team franchise they should conduct which if the following? Build a new stadium Hire a coach Build a new arena Economic impacts study
Economic impacts study
Which of the following would most likely not be found in a sports team's "general conduct" policy? Any criminal activity Excessive celebration in the end zone Money laundering Obstruction of justice Illegal drug use
Excessive celebration in the end zone
FVC stands for; Franchise Voter Commission Future Value Calculation Fan Value Concessions Franchise Venture Capital None of the above
Future Value Calculation
With the inclusion of unions and the collective bargaining process into professional sports it helped in doing which of the following? Increase in overall athlete salaries Decrease in overall athlete salaries No impact on athlete salaries None of the above
Increase in overall athlete salaries
Which of the following best describes ticket demand for NFL games? Elastic Inelastic Market equilibrium Net profit Competitive balance
Inelastic
A certain level of violence is tolerated in professional sports because hard physical activity is inherent in sports True False
True
Which of the following is not an example of a professional athlete violating a "public law" policy? Drunk driving Kneeling during the National Anthem before the Super Bowl Dog fighting Domestic violence Sexual assault
Kneeling during the National Anthem before the Super Bowl
If a professional athlete's three-year contract with a professional sports team provides an annual salary of $9,000,000 first year, $9,000,000 second year, and $9,000,000 third year, the third year salary is worth: The same as the second year The same as the first year More than the first and second year Less than the first and second year
Less than the first and second year
Professional sports team often relocate to another city in order to Seek warmer weather Maximize profits Be located closer to the team owner's home Get away from unruly fans Because they can
Maximize profits
A professional athlete is an employee of the professional sports team True False
True
Which of the following is not an example of price discrimination in sports? Corporate seating Higher green fee prices for non-residents of course Higher weakened green fee prices for weekend rounds Sale price for hockey jersey All of the above are examples of price discrimination
Sale price for hockey jersey
Which of the following best describes tocket demand for NFL games? Fully elastic Slightly elastic Fully inelastic Slightly inelastic None of the above
Slightly elastic
For a professional sports team, that has sold tickets to a game, which of the following is not an example of pricing complements? Merchandising Food Drinks Parking Tips
Tips
Which of the following is the goal of sports gambling bookies? Pick sporting event winner Pick sporting event loser To make a profit Ensure gamblers win the bet Ensure gamblers lose the bet
To make a profit
All professional football players are part of a union True False
True
An entire professional sports team can be penalized for one athlete cheating True False
True
Charging a higher price for golf green feeds on the weekends, compared to a round during the week, is an example of peak load pricing True False
True
Having a multi-year contract, with a sports team, increases the need to secure risk insurance on a professional athlete True False
True
Professional athletes can be disciplined by their sports teams for improper behavior both on and off the field True False
True
Professional sport team owners are legally able to have insurance policies on their key players in case they are injured, unable to play, and revenue drops. True False
True
The United States Supreme Court ruled that the NFL is not a single entity True False
True
Whether a professional sports athlete gets hurt during a game is an example of economic of uncertainty. True False
True