Related to the Economics in Practice on page 218: A study discussed in the Economics in Practice found that NFL teams tend to ________ for the top pick in the annual player draft in terms of trades they make, ________ player productivity.
A) overpay; overestimating
B) underpay; overestimating
C) overpay; underestimating
D) underpay; underestimating

Question

Quizplus · Accepted Answer

The study found that NFL teams tend to overpay for the top pick in the annual player draft, often overestimating the productivity of the players they are trading for. This indicates a valuation mismatch where the expected performance does not always align with the actual output of the players once they are part of the team.

Related to the Economics in Practice on Page 218: a Study