ECO 330 FINAL UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
The prospect theory suggests that the chance of losing makes a game more
interesting and therefore that chance stimulates demand while the
Uncertainty of Outcome Hypothesis states that individuals show greater
aversion to losses than the desire for gains. True False
Answer:
False
Question:
Economics is relevant to the study of sports because
a. sports media contracts are complicated and tend to have an economic
impact
Answer:
c. athletes, franchises, and leagues face scarcity and economics is the study of
choices necessary because of scarcity.
Question:
Suppose the typical Detroit Lions fan has the following demand curve for Bills
football games: P = 500 - 25G where G is the number of games the fans attend.
If the Lions want to sell a fan a ticket to each of the eight home games (assume
no price discrimination), what price must they charge per ticket?
Suppose the Lions have the chance to offer a season ticket that is good for all
eight home games.
What should be the average ticket price for the 8-game season ticket package?
Answer:
300
387.5
Question:
Other things equal, the demand for a good tends to be inelastic (less elastic),
the
Answer:
fewer the available substitutes.
Question:
Over a 5 year period, a pickle ball league's HHI was 0.34 while during that
same period the table tennis' HHI was equal to 0.26, which league exhibits
more competitive balance?
Answer:
The tennis league exhibits more between-season competitive balance, but
within-season competitive balance cannot be determined from the
information given.
Question:
Which of the following best illustrates the fallacy of composition?
, Answer:
"If Chance stood up at a basketball game, he could get a better view of the
game; if everyone stood up at a basketball game, everyone could have a better
view of the game."
Question:
Deadweight Loss
Answer:
Value of trade society is deprived of because of a monopoly.
Question:
First Degree Price Discrimination
Answer:
The process of charging each consumer the maximum that he or she is willing
to pay.
Question:
Second Degree Price Discrimination
Answer:
Charging consumers different prices based on the quantity of the good they
consume.
Question:
Third Degree Price Discrimination
Answer:
Occurs when a firm charges different prices for the same good to different
segments of the market
Question:
Variable Ticket Pricing
Answer:
The process of setting ticket prices in accordance with the expected demand
for a future game.
Question:
Bundling
Answer:
A consumer who wants to buy Good A must also buy Good B.
Question:
Market Failure
Answer:
Goods & services are not allocated in the way that is most valued by society
Question:
Suppose one year the Minnesota Twins charged $50 for seats in the right field
and sold 150,000 tickets over the course of the season. The next season, the
Twins increased the price to $55 and sold 142,500 tickets (assume no other
changes). Is the demand for Twins right field seats elastic or inelastic?
Answer:
Inelastic
CORRECT ANSWERS
Question:
The prospect theory suggests that the chance of losing makes a game more
interesting and therefore that chance stimulates demand while the
Uncertainty of Outcome Hypothesis states that individuals show greater
aversion to losses than the desire for gains. True False
Answer:
False
Question:
Economics is relevant to the study of sports because
a. sports media contracts are complicated and tend to have an economic
impact
Answer:
c. athletes, franchises, and leagues face scarcity and economics is the study of
choices necessary because of scarcity.
Question:
Suppose the typical Detroit Lions fan has the following demand curve for Bills
football games: P = 500 - 25G where G is the number of games the fans attend.
If the Lions want to sell a fan a ticket to each of the eight home games (assume
no price discrimination), what price must they charge per ticket?
Suppose the Lions have the chance to offer a season ticket that is good for all
eight home games.
What should be the average ticket price for the 8-game season ticket package?
Answer:
300
387.5
Question:
Other things equal, the demand for a good tends to be inelastic (less elastic),
the
Answer:
fewer the available substitutes.
Question:
Over a 5 year period, a pickle ball league's HHI was 0.34 while during that
same period the table tennis' HHI was equal to 0.26, which league exhibits
more competitive balance?
Answer:
The tennis league exhibits more between-season competitive balance, but
within-season competitive balance cannot be determined from the
information given.
Question:
Which of the following best illustrates the fallacy of composition?
, Answer:
"If Chance stood up at a basketball game, he could get a better view of the
game; if everyone stood up at a basketball game, everyone could have a better
view of the game."
Question:
Deadweight Loss
Answer:
Value of trade society is deprived of because of a monopoly.
Question:
First Degree Price Discrimination
Answer:
The process of charging each consumer the maximum that he or she is willing
to pay.
Question:
Second Degree Price Discrimination
Answer:
Charging consumers different prices based on the quantity of the good they
consume.
Question:
Third Degree Price Discrimination
Answer:
Occurs when a firm charges different prices for the same good to different
segments of the market
Question:
Variable Ticket Pricing
Answer:
The process of setting ticket prices in accordance with the expected demand
for a future game.
Question:
Bundling
Answer:
A consumer who wants to buy Good A must also buy Good B.
Question:
Market Failure
Answer:
Goods & services are not allocated in the way that is most valued by society
Question:
Suppose one year the Minnesota Twins charged $50 for seats in the right field
and sold 150,000 tickets over the course of the season. The next season, the
Twins increased the price to $55 and sold 142,500 tickets (assume no other
changes). Is the demand for Twins right field seats elastic or inelastic?
Answer:
Inelastic
