Prtm Ch. 12

Front 1

economics of sport

Back 1

study of how people within the sport industry deal with scarcity

Front 2

scarcity (a product is considered scarce if people want more of the product than is freely available for consumption

Back 2

the basic economic problem facing all societies

Front 3

goods

Back 3

tangible products such as a pair of soccer cleats, a tennis racket, or a mountain bike

Front 4

services

Back 4

intangible products such as marketing advice, business consulting, and financial planning

Front 5

economic interaction

Back 5

exchange of one product of value for another product of value

Front 6

macroeconomics

Back 6

study of the problems and workings of the economy as a whole

Front 7

real gross domestic product (GDP)

Back 7

value of all goods and services newly produced in a country during some period of time, adjusted for inflation

Front 8

business cycles

Back 8

highs and lows in the level of economic activity over several years

Front 9

expansion

Back 9

a period of at leat three consecutive quarters in which positive economic growth occurs

Front 10

recession

Back 10

a decline in economic activity, or real GDP, that lasts for at least six months

Front 11

peak

Back 11

a point at which economic activity reaches a temporary maximum level

Front 12

trough

Back 12

a point at which economic activity reaches its lowest level

Front 13

interest rate

Back 13

amount that a financial institution charges when it lends money, stated as a percentage of the amount borrowed

Front 14

inflation rate

Back 14

percentage increase in the overall price level of goods and services over a given period, usually one year

Front 15

microeconomics

Back 15

the study of the behavior of individual businesses and households

Front 16

demand

Back 16

the relationship between the price of a product and the amount of the product that consumers are willing to buy

Front 17

quantity demanded

Back 17

the amount of a product that consumers are willing to buy at various levels

Front 18

law of demand

Back 18

consumers will demand less of a product as its price increases and more of a product as its price falls

Front 19

supply

Back 19

the relationship between the price of a product and the amount of the product that suppliers are willing to produce and sell

Front 20

quantity supplied

Back 20

amount that suppliers are willing to produce and sell at various levels

Front 21

law of supply

Back 21

suppliers will increase production as the price of the product increases and decrease production as the price falls

Front 22

market equilibrium

Back 22

the price at which the quantity demanded equals the quantity supplied

Front 23

market surplus

Back 23

price at which the quantity supplied of a product is greater than the quantity demanded

Front 24

market shortage

Back 24

a price at which the quantity demanded of a product is greater than the quantity supplied

Front 25

perfectly competitive market

Back 25

market that has a large number of suppliers and consumers
-all suppliers produce an identical product
-all parties have the same information
-suppliers can easily enter and exit the market

Front 26

monopolistically competitive market

Back 26

market that has a large number of suppliers and consumers
-all parties have the same information
-suppliers can easily enter and exit the market
-suppliers can differentiate their products

Front 27

oligopolistic

Back 27

small number of suppliers, greater control over prices, easier to make profits

Front 28

monopoly

Back 28

market where only one company sells the product (ex. NCAA men's championship)

Front 29

economic expansion

Back 29

must be growing for three consecutive quarters

Front 30

economic recession

Back 30

must be decreasing for six ongoing months

Front 31

indirect economic impact

Back 31

when the new money is spent in the local community by the recipients or businesses

Front 32

induced economic impact

Back 32

created by the circulation of wages and salaries paid by employeesof tourism related businesses

Front 33

supply-demand model

Back 33

determining what products can be produced and how much you can charge

Front 34

markets

Back 34

could be a physical location or an intangible idea such as stock exchange (the core of economic activity)

Front 35

total exp = per day exp X length of stay X # of visits X # of visitors

Back 35

total expenditures equation

Front 36

future value= present value (1 + r) raised to the n

Back 36

interest rate equation

Front 37

profit = total revenue - total cost

Back 37

profit equation

Front 38

profit organizations

Back 38

primary goal is to produce a profit

Front 39

nonprofit organizations

Back 39

pursuing profit as a primary goal is a violation of the law

Front 40

sole proprietorships

Back 40

similar to partnerships and there's only one owner

Front 41

partnerships

Back 41

teo or more owners and there is limited liability

Front 42

corporations

Back 42

have multiple owners who own stock in company (stock is not publicly available)

Front 43

single-entity structure

Back 43

allows leagues to work together and to set limits

Front 44

cash flow

Back 44

shos inflow and outflow of cash during a given period (not cash received or disbursed)
-focuses on items of value that are not cash in nature (depreciation)
-allows financial managers to monitor cash-related activity and make financial decisions