Question 1

The theories of absolute advantage put forth that players should specialize:&#10;A) Based on their &#34;God-given ability&#34;.&#10;B) Based on differences in factor abundance.&#10;C) Based on differences in productive efficiency.&#10;D) Based on what they enjoy doing the most.

Accepted Answer

The theory of absolute advantage suggests that each country or individual should specialize in producing a particular good or service, based on differences in productive efficiency. This means that each player should focus on what they can produce most efficiently to maximize overall output and economic welfare. It is not based on inherent abilities or personal preferences, but on objective measures of efficiency. Differences in factor abundance, such as the availability of labor or natural resources, can influence specialization decisions but are not the primary factor.

Question 2

Why is it that sports, despite their relative modest financial impact on an economy, receive such a tremendous amount of media attention?

Accepted Answer

Professional sports play a &#34;super-sized&#34; role in the American economy because they are such an integral part of American culture and history. The fact that corporations with much greater total financial impact on the American economy (for example, Wal-Mart) don't receive regular coverage in the daily newspapers but sports do is evidence of the profound enthusiasm American's have for their four main team sports.

Question 3

According to the principle of comparative advantage Charles Woodson plays defensive back rather than receiver for the Green Bay Packers because:&#10;A) he plays defensive back better than he plays receiver.&#10;B) his advantage as a defensive back exceeds his advantage as a receiver.&#10;C) he is the best defensive back on the team.&#10;D) the other receivers on the team are better than he is.

Accepted Answer

The principle of comparative advantage states that a person should specialize in an activity in which they have a comparative advantage. This means they have a relatively stronger advantage in that activity compared to others. Therefore, Charles Woodson plays defensive back rather than receiver for the Green Bay Packers because his comparative advantage as a defensive back exceeds his comparative advantage as a receiver.

Question 4

How does economics differ from the physical sciences?

Accepted Answer

The answer of How does economics differ from the physical...

Question 5

The sub-discipline of labor economics deals with:&#10;A) Players' human capital formation.&#10;B) The impact teams and leagues have on players' wages.&#10;C) Racial discrimination in sports.&#10;D) All of the above.

Accepted Answer

Labor economics deals with all of the above aspects, including human capital formation, wages, and discrimination. It focuses on analyzing and understanding the labor market, employment trends, and the impact of policies on the labor force. This sub-discipline is relevant in sports economics when studying the earnings of athletes, the impact of team and league structures on wages, and the existence of discrimination problems.

Question 6

Give one example of a sports issue that illustrates a concept from industrial organization, public finance and labor economics.

Accepted Answer

The answer of Give one example of a sports issue...

Question 7

The total revenue generated by the top four American Team Sports: Baseball, Basketball, Football and Hockey ranked in the top ten when compared with all revenue generating companies.

Accepted Answer

The top four American team sports generate significant revenue, but when compared to the revenue of the world's largest companies, they do not rank in the top ten. Companies in sectors like technology, finance, and energy often report annual revenues in the hundreds of billions, far exceeding the total revenue generated by professional sports leagues.

Question 8

The most significant cost a star athlete such as Kobe Bryant (who had the opportunity to bypass playing college basketball to go straight to the NBA) faces when choosing to attend college is:&#10;A) Room and board.&#10;B) Tuition.&#10;C) Books and supplies.&#10;D) The opportunity costs of their foregone income.

Accepted Answer

The opportunity costs of their foregone income would be the most significant cost for a star athlete like Kobe Bryant who had the option to bypass college and go straight to the NBA. By choosing to attend college, he would be giving up the significant income he could earn by playing in the NBA. While room and board, tuition, books, and supplies are also costs associated with attending college, they would pale in comparison to the foregone income for a star athlete.

Question 9

An athlete who is both the best football and baseball player on their High School team is said to have a(n)______________________both sports.&#10;A) Absolute advantage in.&#10;B) Comparative advantage in.&#10;C) Holistic advantage in.&#10;D) Knack for.

Accepted Answer

Absolute advantage refers to the ability to produce a certain good or service using fewer resources than another producer. In this case, the athlete is able to excel in both football and baseball, indicating that they have an absolute advantage in both sports compared to their teammates or competitors.

Deck 1: Economics and Sports