Title: QUIZ: What Should College Athletes Be Paid? Market Structure and the NCAA -- Page One Economics®
Course: Recommended Resources for AP Micro from FRE > Section: Unit 5: Factor Markets

Q: In a monopsony, all __________ must go to a single ___________.
- laborers; employer
- buyers; seller
- sellers; laborer
- firms; supplier
A: laborers; employer

Q: A market controlled by a single firm or producer is called a(n)
- monopsony.
- oligopoly.
- monopolistic competition.
- monopoly.
A: monopoly.

Q: Lack of competition in the market often leads to __________ prices and ______innovation.
- higher; more
- higher; less
- lower; less
- lower; more
A: higher; less

Q: Monopolies and monopsonies both result in a lack of __________ in the market.
- competition
- producers
- consumers
- incentives
A: competition

Q: NCAA member schools have created a monopsony market because
- there isn’t another market in which amateur athletes can trade their skills for compensation.
- all universities and colleges are required to participate in the NCAA.
- college athletes are not able to collectively bargain as other unions are.
- universities and colleges are not allowed to actively recruit college athletes.
A: there isn’t another market in which amateur athletes can trade their skills for compensation.

Q: Which of the following is an NOT an example of Name, Image, Likeness (NIL) use?
- Universities licensing an athlete’s likeness to be used in a video game
- Student athletes participating in an endorsement campaign for a shoe brand
- Sales of t-shirts featuring a university’s name and mascot
- Sales of jerseys featuring specific athletes’ names and numbers
A: Sales of t-shirts featuring a university’s name and mascot

Q: Which of the following is a consequence of a monopsony labor market?
- Prices are higher.
- Workers have more labor protections compared with other industries.
- Prices are lower.
- Compensation is often lower than if there were competition.
A: Compensation is often lower than if there were competition.

Q: After the Supreme Court’s ruling, which of the following actions reduced the monopsony power of the NCAA?
- A policy banning student athletes from accepting endorsement deals
- Caps on education-related benefits like graduate school scholarships
- A new policy allowing students to be compensated when their names/images are used in products sold by the university
- Member schools agreeing to follow recruiting guidelines established by the NCAA
A: A new policy allowing students to be compensated when their names/images are used in products sold by the university

Q: Antitrust laws are designed to
- prevent producers from entering the market.
- prevent activities that unduly restrain trade and reduce competition.
- protect patent infringement.
- protect consumers from bad actors within the marketplace.
A: prevent activities that unduly restrain trade and reduce competition.

Q: A market for a good or service where there is only one buyer or that is dominated by one buyer is called a(n)
- monopsony.
- oligopoly.
- monopolistic competition.
- monopoly.
A: monopsony.