Sport Finance Exam 1 Questions And Answers (Verified And Updated)

Sport Finance Exam 1 Questions And Answers (Verified And Updated) what is economics? - answer- the study of how people choose to allocate their scare resources - what and how choices are made - how the market system functions inflation - answerall costs of goods and services increase demand-pull inflation - answerincomes increase but supply remains constant cost-push inflation - answerproduction costs increase therefore costs increase recession - answer- slowdown in economic activity - 2 consecutive quarters of negative economic growth as measured by a country's GDP economies of scale - answerefficiencies made possible by size law of diminishing marginal utility - answeras more is purchased it will become less needed or less popular law of diminishing returns - answermore input does not equal more output (more advertising will not create same amount of demand) recession impacts on sport industry - answer- professional - paid internships down - ticket sales decreased - decline in tax revenue: impacts non profits unionism in the US - answer- formation in 1790's post revolutionary war - movement from custom/craft to mass production - industrial revolution: established factories - collective bargaining: similar to union management process...deals with issues such as pay, fringe benefits, bonuses, working conditions, job security. microeconomics - answer- study of issues that occur at the firm level - supply, demand, and pricing macroeconomics - answer- study of forces that effect numerous sectors of the overall economy at the community, national, regional, or global level - inflation, unemployment, and income command economy - answergovernment driven (soviet union, north korea, cuba) marketplace economy - answermarketplace driven factors of production - answerland, labor, capital, flow markets (factor, product) law of demand - answer- price goes down, demand goes up - demand curve: inverse relationship law of supply - answer- price increases, supply might increase market structure: pure competition - answermany buyers and many sellers market structure: monopolistic competition - answermany sellers but stratified for product differentiation (restaurants, bookstores) market structure: oligopoly - answerfew sellers or just a few large firms (automobile, telecommunications - Ma Bell) market structure: monopoly - answerno competition, no choice, any price charged, and government (tends) to break them up financial and economic factors affecting sport - answer- current economic cycle - television revenues - relationship between team and real estate holdings - push for sustainability - impact of politics on sport governance strategic plan - answerincludes: - organizational objectives - organizational structure - recruitment/selection of personnel - evaluation process