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Sports Economics Australia

Total questions: 69

Worksheet time: 36mins

Name
Class
Date
1.

What is the concept of opportunity cost in sports economics?

a)

The concept of opportunity cost in sports economics refers to the value of the next best alternative that is foregone when a decision is made involving scarce resources.

b)

Opportunity cost in sports economics is the same as the sunk cost fallacy.

c)

Opportunity cost in sports economics refers to the total revenue generated by a sports team.

d)

Opportunity cost in sports economics is the financial cost of participating in sports events.

2.

Explain the term 'salary cap' and its impact on sports teams.

a)

A salary cap only applies to certain positions within a team.

b)

A salary cap allows teams to spend an unlimited amount of money on player salaries.

c)

A salary cap is a limit on the number of players a team can have on its roster.

d)

A salary cap is a limit on the amount of money a team can spend on player salaries. It promotes parity among teams and prevents wealthier teams from dominating the league.

3.

How do sports teams generate revenue besides ticket sales?

a)

Parking fees, ticket refunds, player fines

b)

Merchandise sales, broadcasting rights, sponsorships, advertising, concessions, licensing deals, hosting events

4.

Discuss the role of endorsements in sports economics.

a)

Endorsements in sports economics provide athletes with additional income opportunities and contribute to the growth of the sports industry.

b)

Endorsements in sports economics are illegal

c)

Endorsements in sports economics have no impact on athletes' income

d)

Endorsements in sports economics lead to a decrease in the sports industry

5.

What are the economic implications of hosting major sporting events like the Olympics?

a)

Hosting major sporting events like the Olympics can boost tourism, create jobs, and stimulate infrastructure development, but it can also lead to high costs, potential debt, and underutilization of facilities post-event.

b)

Hosting major sporting events like the Olympics always results in profit

c)

Hosting major sporting events like the Olympics never leads to debt

d)

Hosting major sporting events like the Olympics has no impact on the economy

6.

Explain the concept of market value in sports economics.

a)

Market value in sports economics is the price at which a player, team, or sports entity would be traded in a competitive market.

b)

Market value in sports economics is the cost of tickets for sporting events.

c)

Market value in sports economics is the amount of revenue generated by a sports league.

d)

Market value in sports economics is the number of wins a team has in a season.

7.

How do player contracts affect the financial health of sports teams?

a)

Player contracts allocate a significant portion of the team's budget to player salaries, impacting the financial health by limiting investments in other areas.

b)

Player contracts allow teams to invest more in infrastructure and facilities

c)

Player contracts have no impact on the financial health of sports teams

d)

Player contracts increase the team's revenue by attracting more sponsors

8.

Discuss the impact of globalization on sports economics.

a)

Globalization has made sports more exclusive, reducing accessibility and participation among diverse populations.

b)

Globalization has led to a decrease in sports viewership and interest, resulting in lower revenue for sports organizations.

c)

Globalization has increased revenue streams through international broadcasting rights, sponsorships, and merchandise sales, as well as created global sports leagues and tournaments, attracting a larger audience and increasing the value of sports franchises.

d)

Globalization has caused sports leagues to become more localized, limiting their reach and impact on a global scale.

9.

What is the significance of TV broadcasting rights in sports economics?

a)

TV broadcasting rights are crucial in generating revenue for sports organizations, teams, and leagues, impacting player salaries and financial stability.

b)

TV broadcasting rights do not affect financial stability

c)

TV broadcasting rights have no impact on sports economics

d)

TV broadcasting rights only benefit players directly

10.

Explain the concept of price discrimination in the context of sports economics.

a)

Price discrimination in sports economics involves charging different prices to different consumer groups based on their willingness to pay, maximizing revenue by capturing surplus.

b)

Price discrimination in sports economics means offering discounts to consumers based on their loyalty to the team.

c)

Price discrimination in sports economics involves charging the same price to all consumers regardless of their willingness to pay.

d)

Price discrimination in sports economics refers to setting prices based on the cost of production.

11.

What role do sports agents play in sports economics?

a)

Sports agents negotiate contracts for players, securing the best possible financial deals and endorsements, which can significantly impact a player's income and the financial dynamics of sports teams.

b)

Sports agents only provide legal advice to players and do not participate in economic activities.

c)

Sports agents have no role in sports economics.

d)

Sports agents are primarily concerned with coaching and training athletes.

12.

How does fan engagement through social media platforms impact sports economics?

a)

Fan engagement through social media has no significant impact on sports economics.

b)

Increased fan engagement on social media platforms can lead to higher ticket sales, merchandise sales, and sponsorship deals, thereby boosting revenue for sports teams and leagues.

c)

Social media engagement decreases the value of sports teams due to negative publicity.

d)

Social media platforms are only used for broadcasting games and do not facilitate fan engagement.

13.

What is the impact of sports betting on sports economics?

a)

Sports betting generates significant revenue for sports leagues and teams through partnerships and sponsorships with betting companies.

b)

Sports betting has led to a decrease in viewership of sports events.

c)

Sports betting is illegal and has no impact on sports economics.

d)

Sports betting only benefits the betting companies and has no financial impact on sports leagues or teams.

14.

How does the implementation of advanced analytics impact team performance and decision-making in sports economics?

a)

Advanced analytics have no significant impact on team performance or decision-making in sports economics.

b)

Advanced analytics primarily benefit the marketing departments of sports teams and have little impact on performance.

c)

Advanced analytics provide teams with insights into player performance, injury prevention, and game strategy, leading to improved decision-making and competitive advantage.

d)

Advanced analytics increase the cost of operations for sports teams without providing any real benefits.

15.

What is the role of fan loyalty in the financial success of sports teams?

a)

Fan loyalty has a minimal impact on the financial success of sports teams as it does not translate to revenue.

b)

Fan loyalty is crucial for financial success as it drives merchandise sales, ticket sales, and can attract sponsorships, contributing to a team's revenue.

c)

Fan loyalty only affects the team's performance on the field and has no financial implications.

d)

Fan loyalty leads to increased costs in fan engagement activities without significant financial returns.

16.

Discuss the economic effects of player transfers on the selling and buying clubs in sports economics.

a)

Player transfers have no economic effects on the selling or buying clubs.

b)

Player transfers can lead to financial instability for both selling and buying clubs due to unpredictable transfer fees.

c)

For the selling club, player transfers can result in immediate financial gain and potential loss in team strength, while buying clubs may gain in team strength but face financial pressure from transfer fees.

d)

Player transfers only benefit the players involved and have no impact on the clubs' economics.

17.

who is the father of economics?

a)

Ricardo

b)

marshal

c)

Adam smith

d)

J B Say

18.
The resources required to make a product (good or service)
a)
economics
b)
consumption
c)
four factors of production
d)
scarcity
19.
The resources required to make a product (good or service)
a)
economics
b)
consumption
c)
four factors of production
d)
scarcity
20.

Which of these examples is a service?

a)

Mr. Farr sells guitars.

b)

Mr. Swenson gives art supplies to consumers.

c)

Coach provides lessons for different sports.

d)

Ms. Miller writes books.

21.
______ is giving away money or goods for a good cause.
a)
Donating
b)
Saving
c)
Spending
d)
Market
22.

Which of the following is/are the branches of Economics?

a)

Micro Economics

b)

Macro Economics

c)

None of above

23.

The basic idea of choice presents which of the problems described below in economics?

a)

People get to decide what they want.

b)

Businesses can sell what they want.

c)

Decisions produce costs.

d)

Choice is a way of life.

24.

Which of the following would most likely cause the shift shown in the graph above?

a)

A new, popular model of cell phone just came on the market.

b)

The cost of parts for cell phones has gone up.

c)

Cell phone salesmen are working overtime to sell their phones.

d)

The cell phone company made a large profit this year.

25.

Scarcity is a basic economic problem because -

a)

resources are limited

b)

governments limit production

c)

opportunity costs limit demand

d)

people have trouble making choices

26.

In a supply and demand graph, what likely happens if the cost of parts for

automobile products decreases?

a)

A. The demand curve for automobiles shifts to the right.

b)

B. The supply curve for automobiles shifts to the right.

c)

C. The supply curve for automobiles shifts to the left.

d)

D. The demand curve for automobiles shifts to the left.

27.

Which of the following is a basic characteristic of all economic systems?

a)

Price controls

b)

Wage incentives

c)

Small business owners

d)

Distribution of goods and services

28.
What is supply?
a)
The want or need from consumers in an economy.
b)
Supply is not part of an economy.
c)
The amount of something available.
d)
To trade without using money.
29.
What is supply?
a)
The want or need from consumers in an economy.
b)
Supply is not part of an economy.
c)
The amount of something available.
d)
To trade without using money.
30.
Economy is...
a)
The wealth and resources of a country or region.
b)
Something we talked about in the old days only.
c)
Not something kids need to know.
d)
Something that is made up by the government.
31.

How do you calculate revenue?

a)

sales x price

b)

price x cost

c)

cost + sales

d)

sales - total price

32.

What is another name for a business' sales revenue?

a)

Sales

b)

Costs

c)

Sales turnover, turnover or revenue

d)

Profit and Loss

33.

Which type of profit shows how successful the business activity has been?

a)

Operating Profit

b)

Sales

c)

Expenses

d)

Dividends

34.

If a business's costs exceeds it sales revenue, it will experience a ........?

a)

loan

b)

profit

c)

loss

d)

debt

35.

Which group is interested in a business's profit and loss account?

a)

Stillholders

b)

Stileholders

c)

Stakeholders

d)

Staleholders

36.

The profit and loss account is used by people who may want to become?

a)

customers

b)

suppliers

c)

consumers

d)

investors

37.

Who would be pleased if they looked at a profit and loss account and it showed a loss?

a)

Competitors

b)

Investors

c)

Shareholders or Lenders

d)

the Inland Revenue

38.

What is a profit?

a)

One of the 4 P's of marketing

b)

a financial gain

c)

where someone loses money

39.

What is a loss?

a)

One of the 4 L's of marketing

b)

an increase in financial value

c)

Where one owes money because the profit did not reach the money spent

d)

I have no idea

40.

What is revenue?

a)

The amount of money a sports franchise loses

b)

The amount of money a company spends during an event

c)

NOT THIS ONE

d)

The amount of money a company or team actually receives during a specific period or after an event

41.

If the cost price of an item is $10 and the selling price is $12, was a profit or a loss made?

a)

profit

b)

loss

c)

neither

42.
The phrase "a change in demand" most directly implies a 
a)
movement along the curve
b)
movement along the price curve
c)
change in quantity demanded of a good
d)
shift in the demand curve
43.

If the price of a good or service decreases what will happen to the demand for it?

a)

increase

b)

decrease

c)

stay the same

d)

who knows

44.

If the price of a good or service increases what will happen to the demand for it?

a)

increase

b)

decrease

c)

stay the same

d)

who knows

45.

If the price of printers goes down, what happens in the market for ink cartridges?

a)

Supply increases.

b)

Supply decreases.

c)

Demand increases.

d)

Demand decreases

46.
This part of the market determines DEMAND
a)
buyers
b)
sellers
c)
suppliers
d)
store owners
47.
This part of the market determines SUPPLY
a)
buyers
b)
sellers
c)
consumers
d)
us
48.

What is a consumer?

a)

a person who takes things

b)

a person who purchases goods and services for personal use

c)

a person who takes good away

d)

the economic factors affecting the price, demand, and availability of a commodity

49.

What is a producer?

a)

a person who gives goods away

b)

things people would like to have

c)

the exchanged of goods and services without the use of money

d)

a person, company, or country that makes grows, or supplies goods for sale

50.

What is a free market economy?

a)

An economy based on supply and demand with little or no government control

b)

The international exchange of goods

c)

An economy in which decisions are made by the government

d)

An economy that is communist

51.

If the supply of a good is higher than the demand, what happens to the price?

a)

stays the same

b)

price increases

c)

price decreases

52.

Basic things humans need to survive

a)

want

b)

import

c)

need

53.

Extras that make life more enjoyable

a)

need

b)

want

c)

savings

54.

not being able to meet all wants at the same time

a)

demand

b)

supply

c)

scarcity

55.

Actions that people do for others

a)

goods

b)

services

c)

supply

56.

What is supply?

a)

the amount of an item you have

b)

how many people want your good/service

c)

the money you have left over after you paid your bills

57.

What is demand?

a)

the amount of an item you have

b)

how many people want your good/service

c)

the money you have left over after you paid your bills

58.
Economic system where government controls everything.
a)
Market
b)
Command
c)
Mixed
d)
Free Enterprise
59.
Type of economic system where there is no government control.
a)
Mixed
b)
Market
c)
Free Enterprise
d)
Command
60.
Capitalism is most closely related to which type of economic system?
a)
Command
b)
Traditional
c)
Free Enterprise
d)
Mixed
61.
If the supply of a good is higher than the demand, what happens to the price?
a)
It stays the same
b)
Price goes down
c)
Price goes up
d)
It's FREE!!
62.
How will scarcity of a capital good impact price?
a)
Price would go up
b)
Price would go down
c)
Price would stay the same
d)
You wouldn't sell any
63.
What is consumption?
a)
How a good is moved
b)
How a good is created
c)
How a good is used
d)
How a good is destroyed
64.
Trading something for something else - no currency involved
a)
demand
b)
barter
c)
goods
d)
market
65.

things purchased by consumers

a)

goods

b)

consumer

c)

producer

d)

supply

66.

A person who provides a good or service

a)

producer

b)

need

c)

want

d)

consumer

67.
countries with strong economics and high quality life
a)
developed countries
b)
command economy
c)
market economy
68.

Which of the following is an example of a service? Select ALL that apply.

a)

Burger King

b)

sofa

c)

teaching

d)

construction

69.

Which choice best describes the economic problem of scarcity in the world?

a)

People have limited wants there is an unlimited amount of resources.

b)

People have unlimited wants but there is a limited amount of resources

c)

People have no wants so resources don't matter