ECDNZZEE QUESTION BANK You should use this question bank to prepare for the final exam. Three of the questions here are to be submitted for your Home Work 2 by Friday November 2?, mm at 11:55pm. 1. a. What advantages do professional sports leagues have from an organizational standpoint? [10 marks] b. Why should the size of a league affect the profits of its members? (It) marks] 2. Why has luxury seating become a prominent issue in the stadium negotiations in recent times. (it) marks} 3. Name the sources of revenues and costs for teams. {1D marks] 4. Why is it important for leagues to limit the entry of teams within a given geographical area? [11] marks} 5. Many stadiums have restrictions that prohibit fans from bringing outside food and beverages into games. Under what circumstances will this he a profit maximizing policy? [10 marks} 5. Why might a team owner prefer to raise funds by borrowing money to selling part ownership of the team to others? [21] marks} T. {HW} It has just been announced that the EDIE games of the modern Olympiad will be held in Rio de laniero, Brazil. The Brazilian government is excited and views such an opportunity as a real means to boost the Gross Domestic Product {GDP} and provide a vast employment opportunities of nationals. Despite stating this in black and white, Dilma Vana Rousseff, the president of republic is unable to convince the populace and the opposition socialist party who asks for her to conduct an indepth investigation in noting the impact on the consumption of the city's residents. Her Excellency Dilma Vana Rousseff, hires you and at the end of the study; it is found that the marginal propensity to consume is I125. From this do the following calculations and provide a concise evaluationfinterpretation: [a] The simple multiplier {1i} marks} [b] If a new stadium is built adding a further 12G million USD. what impact is expected on the economy based on the multiplier calculated above? {15 marks] [c] If the marginal propensity to import is found to be ELIE. How does this affect the multiplier and state the impact on tlte economy? [It] marks} [d] If the residents of Rio de Janiero spend an additional 65 cents out of every dollar what effect would this have on the multiplier and on the economy as well? {15 marks] 3. [H'Wj Some economists argue that cooperation between franchises should not be considered in violation of antitrust laws. What argument do they use? [1U marks] 9. [HW] The government of Jamaica has been approached by the brokers of the Commonwealth Games to bid to be the 2024 hosts. They have promised earnings of up to USD2billion versus costs of only USDQ million. You are the Economic Adviser to the Cabinet with responsibility to ensure that the ecouontic premise of the project is theoretically sound. Present a brief and pointed assessment of the economic concepts that need to be analysed and considered and the questions that must be asked in the upcoming meeting with the brokers. [d marks) If}. Explain the challenges relating to the student athletes in Universities and the tensions that can arise due to assessments of university departments on the basis of profit. [ll] marks) 11. Describe the three roles of the NCA. ( It} marks) 12. What are the potential negative impacts of being a student athlete? [l marks] 13. What are the justifications for governments to fund sports? What lintits should a government therefore place on its funding for sport? 14. Explain the negative extemalities that can arise from sport. 15. Using the US model, explain how teams exploit their monopoly power