Sport Finance Exam 1 Questions & Answers Already Passed!!

what is economics? - - the study of how people choose to allocate their scare resources - what and how choices are made - how the market system functions inflation - all costs of goods and services increase demand-pull inflation - incomes increase but supply remains constant cost-push inflation - production costs increase therefore costs increase recession - - slowdown in economic activity - 2 consecutive quarters of negative economic growth as measured by a country's GDP economies of scale - efficiencies made possible by size law of diminishing marginal utility - as more is purchased it will become less needed or less popular law of diminishing returns - more input does not equal more output (more advertising will not create same amount of demand) recession impacts on sport industry - - professional - paid internships down - ticket sales decreased - decline in tax revenue: impacts non profits unionism in the US - - formation in 1790's post revolutionary war- movement from custom/craft to mass production - industrial revolution: established factories - collective bargaining: similar to union management process...deals with issues such as pay, fringe benefits, bonuses, working conditions, job security. microeconomics - - study of issues that occur at the firm level - supply, demand, and pricing macroeconomics - - study of forces that effect numerous sectors of the overall economy at the community, national, regional, or global level - inflation, unemployment, and income command economy - government driven (soviet union, north korea, cuba)