Title: QUIZ: The Economics of Subsidizing Sports Stadiums -- Page One Economics®
Course: Recommended Resources for AP Macro from FRE > Section: Unit 5: Long-Run Consequences of Stabilization Policies

Q: Why does the controversy surrounding government subsidies for sports stadiums exist?
- Because stadiums are not beneficial for the community
- Because construction jobs generated by stadiums are temporary
- Because taxpayers fund government subsidies for new stadiums
- Because professional sports teams do not contribute to civic pride
A: Because taxpayers fund government subsidies for new stadiums

Q: What is the multiplier effect in the context of sports stadiums?
- The increase in stadium attendance over time
- The positive economic impact created by consumer spending
- The number of construction jobs generated by a new stadium
- New economic activity, such as restaurants, generated by a new stadium
A: New economic activity, such as restaurants, generated by a new stadium

Q: According to Roger Noll and Andrew Zimbalist, what did their review of stadium investments reveal?
- All sports facilities have a reasonable return on investment.
- There were small or negative effects on overall economic activity and employment.
- Stadiums are essential for economic growth.
- Economic benefits of sports stadiums are often underestimated.
A: There were small or negative effects on overall economic activity and employment.

Q: Considering opportunity costs in the context of sports stadiums should include the
- “seen” and “unseen” economic activity.
- total cost of stadium construction.
- economic impact of diverting spending.
- “unseen” economic activity.
A: “seen” and “unseen” economic activity.

Q: Which of the following is an example of the “unseen” economic activity that is often overlooked?
- Consumer spending at the game on tickets, snacks, and souvenirs
- Consumer spending on team-branded clothing at their local sporting goods store
- Watching sports on television that is supported by advertising
- Consumer spending at museums, movies, and restaurants that is displaced by spending on baseball game tickets
A: Consumer spending at museums, movies, and restaurants that is displaced by spending on baseball game tickets

Q: According to economists, what type of government spending is considered an investment in human capital?
- Spending on sports stadiums
- Spending on education
- Spending on luxury condominiums
- Spending on entertainment
A: Spending on education

Q: What is the potential benefit of government spending on infrastructure, according to economists?
- Increased productivity
- Civic pride
- Higher attendance at sporting events
- Improved image as a first-tier city
A: Increased productivity

Q: Why do economists emphasize the consideration of opportunity costs in the context of sports stadiums?
- To highlight the benefits of stadium construction
- To support government subsidies for stadiums
- To show the unseen economic impact of stadiums
- To highlight that it takes money away from being spent on other things
A: To highlight that it takes money away from being spent on other things

Q: In an economist's view, what is the preferred option for government spending instead of subsidizing sports stadiums?
- Funding luxury condominiums
- Investing in education and infrastructure
- Supporting professional sports teams
- Building more stadiums
A: Investing in education and infrastructure

Q: What is the main conclusion drawn regarding the impact of sports stadiums on local economies?
- Sports stadiums have a significant positive impact.
- The economic impact of stadiums is often exaggerated.
- Governments should continue subsidizing sports stadiums.
- Civic pride is the only measurable impact of stadiums.
A: The economic impact of stadiums is often exaggerated.