Exam one, Sports Econ Chapter
2, Sports economics quiz
surplus - answers-a disequilibrium that occurs when quantity supplied exceeds quantity
demanded.
shortage - answers-a disequilibrium that occurs when quantity demanded exceeds
quantity supplied
Change in Demand vs. Change in Quantity Demanded - answers-A change in demand
is when the whole curve shifts and a change in quantity demanded is movement along
the demand curve due to a change in price. Price Doesn't shift the curve.
What are outputs in terms of sports leagues? - answers-- Number of games
- Number of fans
- TV revenue
- Winning percentage
Law of Demand - answers-consumers buy more of a good when its price decreases and
less when its price increases
elasticity of demand - answers-a measure of how consumers react to a change in price
Law of Supply - answers-Tendency of suppliers to offer more of a good at a higher price
elasticity of supply - answers-a measure of the way quantity supplied reacts to a change
in price
Change in Supply vs. Change in Quantity Supplied - answers-Change in supply means
shift of whole curve, change in the Quantity Supplied means shift along the curve
Determinants of Supply - answers-- Price of inputs
- Technology
- Taxes/regulations
- Expectations
- Natural events
Determinants of Demand - answers-- Consumer income
, - Price of related -goods
- Tastes and preferences
- Number of consumers
- Expectations of consumers
short run - answers-the period of time during which at least one of a firm's inputs is fixed
Team Behavior - answers-Each team is independent but they are affiliated with a larger
organization and mist therefore comply with many stipulations, regulations and
agreements
What's wrong with a monopoly? - answers-- Charge more
- Supply less
- Innovate less
A monopolist’s price is not equal to marginal cost resulting in - answers-Lower
consumer surplus a d deadweight loss resulting in a less efficient outcome
Do monopolies always charge monopoly prices? - answers-Teams could charge more
but they don’t
Why do teams not charge more for tickets? - answers-Ticket revenue is split. they
generate additional revenue through parking, programs, pro shops and concessions.
long run - answers-the time period in which all inputs can be varied
production function - answers-the relationship between quantity of inputs used to make
a good and the quantity of output of that good
Various inputs - answers-- Technology
- Labor
- Capital
Law of Diminishing Marginal Returns - answers-As more of a variable resource is added
to a given amount of a fixed resource, marginal product eventually declines and could
become negative
price ceiling - answers-A legal maximum on the price at which a good can be sold
The rise of professional sports - answers-The popularity of sports evolved when
prosperity increased as a result of the industrial
revolution. As the book says in order "for a society to have a pastime it first must have
time to pass"
Closed leagues - answers-the teams in the league do not change from season to
season
2, Sports economics quiz
surplus - answers-a disequilibrium that occurs when quantity supplied exceeds quantity
demanded.
shortage - answers-a disequilibrium that occurs when quantity demanded exceeds
quantity supplied
Change in Demand vs. Change in Quantity Demanded - answers-A change in demand
is when the whole curve shifts and a change in quantity demanded is movement along
the demand curve due to a change in price. Price Doesn't shift the curve.
What are outputs in terms of sports leagues? - answers-- Number of games
- Number of fans
- TV revenue
- Winning percentage
Law of Demand - answers-consumers buy more of a good when its price decreases and
less when its price increases
elasticity of demand - answers-a measure of how consumers react to a change in price
Law of Supply - answers-Tendency of suppliers to offer more of a good at a higher price
elasticity of supply - answers-a measure of the way quantity supplied reacts to a change
in price
Change in Supply vs. Change in Quantity Supplied - answers-Change in supply means
shift of whole curve, change in the Quantity Supplied means shift along the curve
Determinants of Supply - answers-- Price of inputs
- Technology
- Taxes/regulations
- Expectations
- Natural events
Determinants of Demand - answers-- Consumer income
, - Price of related -goods
- Tastes and preferences
- Number of consumers
- Expectations of consumers
short run - answers-the period of time during which at least one of a firm's inputs is fixed
Team Behavior - answers-Each team is independent but they are affiliated with a larger
organization and mist therefore comply with many stipulations, regulations and
agreements
What's wrong with a monopoly? - answers-- Charge more
- Supply less
- Innovate less
A monopolist’s price is not equal to marginal cost resulting in - answers-Lower
consumer surplus a d deadweight loss resulting in a less efficient outcome
Do monopolies always charge monopoly prices? - answers-Teams could charge more
but they don’t
Why do teams not charge more for tickets? - answers-Ticket revenue is split. they
generate additional revenue through parking, programs, pro shops and concessions.
long run - answers-the time period in which all inputs can be varied
production function - answers-the relationship between quantity of inputs used to make
a good and the quantity of output of that good
Various inputs - answers-- Technology
- Labor
- Capital
Law of Diminishing Marginal Returns - answers-As more of a variable resource is added
to a given amount of a fixed resource, marginal product eventually declines and could
become negative
price ceiling - answers-A legal maximum on the price at which a good can be sold
The rise of professional sports - answers-The popularity of sports evolved when
prosperity increased as a result of the industrial
revolution. As the book says in order "for a society to have a pastime it first must have
time to pass"
Closed leagues - answers-the teams in the league do not change from season to
season
