Final Exam answers Spring17 for ECON 2447-Sports Economics-ALL ANSWERS CORRECT-GRADED A

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Final exam Spring 2017 Multiple choice. Write your answer in the space provided. (4 points each) _b_ 1. In major league baseball, a plot of team winning percentage against team salary reveals (a)... No correlation. (b) A slight positive correlation. (c) A negative correlation. (d) None of the above. _a_ 2. The “Moneyball Hypothesis” contended that, prior to the early 2000’s, major league teams (a) Undervalued on-base percentage and overvalued home runs. (b) Undervalued power hitters. (c) Did not base salaries on performance at all. (d) Based salaries on longevity in the league. _d_ 3. Giving teams exclusive rights to innovative training or other management strategies would (a) Be like granting firms patent protection for inventions. (b) Harm the goal of maintaining competitive balance in the league. (c) Be very difficult to enforce. (d) All of the above. _d_ 4. Actual player salaries are generally below their marginal revenue products (MRPs) because (a) Bargaining between players and teams over salaries splits the surplus. (b) Teams need to expect a positive return from players to cover training costs. (c) In bidding for free agents, the winning team only has to bid the value of the player to the secondhighest bidder. (d) All of the above. _b 5. The principal-agent model in economics is concerned with (a) Safety of the work environment in employment relationships. (b) The nature of the contract between the employer and employee. (c) Providing equal pay for all workers. (d) None of the above. [Show More]

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