Ba 101 Final

Front 1

Interaction between buyers and sellers helps to determine:

Back 1

price levels

Front 2

Which of the following describes a market in which there are a few sellers offering a similar product or service?

Back 2

oligopoly

Front 3

Which of the following equations best defines profit?

Back 3

profit = total revenue - total cost

Front 4

In the language of economics, a _______ is an outer limit that can expand or contract.

Back 4

margin

Front 5

________ refers to the savings that result from large-scale production.

Back 5

Economies of scale

Front 6

When leagues expand, superstar salaries can be expected to:

Back 6

increase

Front 7

You can gauge a team's financial condition without seeing its books. Just look at:

Back 7

the price people will pay to own it

Front 8

Economists sometimes refer to materials, labor, and capital as:

Back 8

factors of production

Front 9

Pro sports leagues are selling a product that blends:

Back 9

athletics, business, and entertainment

Front 10

Demand is most likely to be inelastic for:

Back 10

medicine with no generic substitute

Front 11

After the 1919 season, Red Sox owner Harry Frazee sold Babe Ruth's contract to the New York Yankees because he needed money to finance a Broadway musical. Which economic concept does his decision illustrate?

Back 11

opportunity cost

Front 12

If a team plays in a depressing ballpark and usually loses, what will be the most likely outcome if it tries to raise ticket prices?

Back 12

There will be a drop in the quantity of tickets demanded.

Front 13

Low- and mid-priced sporting goods for the American market are often made elsewhere, but high-end sporting goods are often made in America because U.S. manufacturers can still produce and sell them at a lower:

Back 13

relative cost

Front 14

The Sherman Antitrust Act of 1890 was a response to public concern over:

Back 14

the growing monopoly power of railroads, oil companies, and steel companies

Front 15

Which concept best explains why most baseball gloves are manufactured outside the United States?

Back 15

comparative advantage

Front 16

Markets develop when:

Back 16

buyers and sellers freely come into contact with one another

Front 17

Economists Quirk and Fort use the term _______ to describe the amount of revenue a player would add to a team if he or she were signed to a contract.

Back 17

marginal revenue product

Front 18

The dollar amount on your paycheck is your nominal wage or money wage, but _______ are often a better measure of your true purchasing power.

Back 18

real wages

Front 19

Every Sunday, from September through January, millions of people watch pro football on TV. Why? Because they get a certain amount of pleasure or satisfaction from consuming the NFL's product. This is an example of:

Back 19

utility

Front 20

Players on the Cuban national baseball team earn only a fraction of what American major leaguers make because:

Back 20

their government restricts them from selling their services to the American major leagues, Cuban sports generate only a fraction of the revenue, the Cuban government sets salaries for ballplayers and most other workers

Front 21

Most pro sports teams are:

Back 21

privately-held businesses

Front 22

When owners and players talk about closing the gap between rich teams and poor teams, they often argue over three main options:

Back 22

salary caps, revenue sharing, and a luxury tax

Front 23

When the quantity of tickets demanded by fans is equal to the quantity of tickets supplied by team owners, the market for sports tickets is said to be in:

Back 23

equilibrium

Front 24

When substitute products are plentiful, demand is more likely to be ______ because consumers have more freedom to adjust their spending decisions.

Back 24

elastic

Front 25

A sports franchise is an asset. This is a form of property that has value to its owner.

Back 25

True

Front 26

A profit-oriented team owner will be guided by the following principle:

Back 26

marginal revenue = marginal cost

Front 27

The hometown team has won seven division titles in the past ten years, and yet there are still tickets available for this year's championship series. Which concept helps to explain why the postseason games aren't attracting sellout crowds?

Back 27

diminishing marginal utility

Front 28

Salary decisions made by owners and players help to determine the overall level of salaries in the sports labor market.

Back 28

True

Front 29

The minimum salary a player would be willing to accept is often determined by his or her next-best employment opportunity. Economists refer to it as the player's:

Back 29

reservation wage

Front 30

Team owners make salary offers based on how much revenue they think a player will add to the team. And players make salary decisions based on:

Back 30

how much they think their talents are worth in the labor market

Front 31

Price elasticity of demand relates to the question of how consumers respond to a change in price.

Back 31

True

Front 32

Current Ratio

Back 32

current assets/current liabilities
A companies ability to meet short-term debt obligations

Front 33

Return on Sales Ratio (ROS)

Back 33

Net Income/Total Sales
How much profit was created for every dollar of sales

Front 34

Return on Assets Ratio (ROA)

Back 34

Net Income/Total Assets
How much profit was created for the assets gathered

Front 35

Return on Equity Ratio (ROE)

Back 35

Net Income/Owners' Equity
How much profit was created with owners' investments

Front 36

Leverage

Back 36

Total Assets/Total Owners' Equity
How big of a company the managers have created using the owners' investments

Front 37

Price/ Earnings Ratio (PE)

Back 37

How many times you would have to multiply the earnings to get the stock price

Front 38

Quick or Acid Ratio

Back 38

Current Assets - Inventory/ Current Liabilities

Front 39

Which company relied most heavily on debt to finance their assets?

Back 39

Refer to Leverage

Front 40

Who had the smallest unit cost as a percentage of their sales dollar?

Back 40

Refer to Contribution Margin

Front 41

If your Foundation bond series number is 13.1S2012, what do you know about that bond?

Back 41

The bond has an interest rate of 13.1 percent, it is an "S" series bond, and it is due (mature) in the year 2012

Front 42

_________ is determined by dividing the total owners' equity from the balance sheet by the number of shares outstanding.

Back 42

Book Value

Front 43

Earnings Per Share

Back 43

Net Income/ Number of Shares
Profit per Share