Refer to Figure 2-12. 13. Almost all economists agree that local and state governments should a. eliminate subsidies to professional sports franchises. One answerer gave me a compelling answer - "Any economist that signed on to that document shouldn't be trusted with money because they are obviously stupid...Your economists are … When the study is completed by paid consultants prior to the public money being spent, the benefits from sports are numerous are large. Economists generally agree that the effects of immigration on the U.S. economy are broadly positive.18 Immigrants, whether high- or low-skilled, legal or illegal, are unlikely to replace native-born workers or reduce their wages over the long-term, though they may cause some short-term dislocations in labor markets. In this example, Joe and Fred, 6. The art in scientific thinking -- whether in chemistry, economics, or biology -- is, 7. This is more difficult to measure than economic benefits but this cultural dimension still matters when these decisions are made. What is the opportunity cost of increasing the production of corn from 400 bushels to 800 bushels? a. That is ... Local and state governments should eliminate subsidies to professional sports franchises. ( Log Out /  This year, it produced 1,300 cars and 20,000 cases of wine. The country of Gerance produces two goods, cars and wine. 13. (This post was prompted by part of a TrueHoop post from yesterday. And such evidence has proven to be quite persuasive. ... "I think they should agree to do less in order to get the money out the door. The law of diminishing returns states that as income increases, there is a diminishing marginal utility. Local and state governments should eliminate subsidies to professional sports franchises. Fred thinks that everyone should be taxed at the same rate because that is the fairest scenario and the wealthy should not be penalized for their success. Last year, it produced 1,000 cars and 15,000 cases of wine. Refer to Figure 2-9, Panel (a). One thing economists do to help them understand how the real world works is, 2. Refer to Figure 2-17. The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in, 8. Yet economists say the country needs at least $2 trillion to help the economy recover back to where it was before the pandemic, ... and funding to help state and local governments that have "run out of money." In fact, a survey of economists by Gregory Mankiw noted that 85% of economists agree that local and state governments should not subsidize professional sports. Christmas spirit saves NBA star from suspension Amid Trump's relief bill chaos, optics get worse for GOP 'Everyone’s sending emails to Jared' about pardons: Source In spite of all of these economic arguments, economists generally oppose subsidizing professional sports stadiums. Refer to Figure 2-20. 12. When surveyed, 86 percent of economists agreed that "local and state governments in the U.S. should eliminate subsidies to professional sports franchises. ... because almost all economists agree that … Not all economists agree that the tax should be revenue neutral in this way, but the profession has been coalescing in recent years around the idea of a carbon tax. Check all that apply. 28. In my last question I asked if any economists disagreed with the 118 who signed a letter saying that California should implement a carbon cap and trade system because it would benefit the state economy. One of the clear benefits of a weaker federal government and stronger state governments is that the needs of each state are more easily managed. The economic impact of undocumented immigrants in the United States is challenging to measure, and politically contentious. ( Log Out /  Joe thinks that the wealthiest 10% of the US population should be taxed a rate higher than the rest of society because they can better afford it. 36. Depending on how it's measured, the unemployment rate is open to interpretation. Pretty much every economist agrees that rent controls are bad. This year it produced 450 bushels of pears and 2000 cellular phones. Learn how to find the real rate and how it affects everyone. Although the Kings do not have much economic impact on Sacramento, the Kings do make basketball fans happy. Local government has continued its post-1945 decline. This is a question that has been addressed numerous times by economists. In the markets for the factors of production in the circular-flow diagram. 1. Given no other information, which of the following events could not explain this change? 20. ), Pingback: Marlins’ publicly-funded stadium not the exception among Major League Baseball teams | Legally Sociable. Private charity tends to be partial. Just like models constructed in other areas of science, economic models. c. copy economic policy from Washington, D.C. d. prevent companies from outsourcing work. Table 2-5 shows one set of production possibilities. The stakes are even higher in places like Sacramento where the Kings are the only professional franchise so if they left, the city isn’t even on the professional sports map. While I am skeptical of arguments that people in Cleveland are worse off because their sports teams haven’t won, having a big sports team can mask other issues or at least help people ignore them. Furthermore, when local and state governments agree to pony up money for stadiums, taxpayers are on the hook for years — sometimes even after the team leaves town. There aren’t that many things you can get economists to agree on. Which of these statements about economic models is correct? When national TV crews come to televise a game, fans feel like they are being recognized (see this post as an example of this). 14. b. increase subsidies to professional sports franchises. Sir Isaac Newton's development of the theory of gravity after observing an apple fall from a tree is an example of, 32. Refer to Figure 2-2. In a free market, there tends to be inequality in income, wealth and opportunity. Whilw there are intense debates among macroeconomists on the effectiveness of expansionary fiscal policy during a severe recession, both the Keynesian and non-Keynesian economists agree on some limitations to fiscal policy as a stabilization tool. Based on the values in the table, the production possibilities frontier is. 24. Economists speaking like policy advisers make. Last year, Home produced 450 bushels of pears and 1050 cellular phones. Since its election victory in 1997, Labour has continued to cap local expenditure and allows local government to … "8 Perhaps economists just do not like sports? The marginal social benefit of pollution is. I think this is similar logic to what happens in tax breaks debates like the one recently in Illinois: while it is hard to justify giving wealthy corporations a tax break to stay in Illinois, who wants to be the politician who let several thousand good jobs go to another state? And these studies – summarized by economists Rob Baade and Victor Matheson — tend to reveal two answers. Given no other information, which of the following events could explain this change? Actually, many econ- 40. 25. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. 39. News Flash: Economists Agree The recent debate over the stimulus bill has lead some observers to think that economists are hopelessly divided on issues of public policy. In fact, a survey of economists by Gregory Mankiw noted that 85% of economists agree that local and state governments should not subsidize professional sports. The slope of the curve between points A and B is, 22. b. increase subsidies to professional sports franchises. 29. Change ), You are commenting using your Facebook account. Economists view normative statements as, 31. 22. Almost all economists agree that a large federal budget deficit Has an adverse effect on the economy Almost all economists agree that government subsidies on ethanol in the US should be.. Do politicians understand how polls work? With respect to how economists study the economy, which of the following statements is most accurate? subsidies, however, both sets of economists appear to agree. Given these three effects, the empirical evidence suggests quite strongly that sports do not create many jobs or generate much economic growth. Using this as an estimate, raising the minimum wage to $10.10 an hour, as many Democrats are proposing in 2014, would reduce the number of people living in poverty by 4.6 million. However, when independent researchers – who are not paid by professional sports teams or leagues – look for these benefits after the fact, evidence of more jobs and economic growth are hard to find…. In spite of all of these economic arguments, economists generally oppose subsidizing professional sports stadiums. The federal government should … Consequently, the Mayor has an incentive to do what he can to keep the Kings in Sacramento (although it not entirely clear if making the non-basketball fans unhappy is good politics). 3. c. copy economic policy from Washington, D.C. d. prevent companies from outsourcing work. It makes a city feel like a major league city. If the outer loop of this circular-flow diagram represents flows of dollars, then the inner loop includes, 33. Diminishing marginal returns to income. ANS: A REF: 2-3 comfortable working-class family life, Selling the perfect bookshelf to Zoom users, One expert says roughly 25% of shopping malls will survive, Videogames under the tree to sizable global industry, US with lowest population growth over a decade in its history, The American communities paying people to move there, Major highway projects continue in the year of COVID-19. when it involves a marginal concept. LAHORE: Almost all leading economists now agree that leaving everything to the free market does not work for the overall betterment of the economy, and left on its own, can lead to gross inequalities. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B? Which the following issues do most macroeconomists widely agree upon? Such a story clearly suggests that the Kings used the threat of re-location to elicit a substantial subsidy from the people of Sacramento. Refer to Figure 2-14. 17. There aren't that many things you can get economists to agree on. 10. For example, your third sports car gives only … While perhaps we could argue that Sacramento has enough going on being the state capital of the country’s largest state, the average citizen might connect more to the sports team. b. increase subsidies to professional sports franchises. ( Log Out /  Change ), You are commenting using your Twitter account. Almost all economists agree that local and state governments should a. eliminate subsidies to professional sports franchises. Which two groups of decision makers are included in the simple circular-flow diagram? I think this is correct: no one want to be the politician that allows the popular local sports franchise to leave town. With a sports teams, politicians and business people can take big wigs to games, signalling that their city is really part of the big time, even if the economic data doesn’t necessarily bear this out. https://quizlet.com/372071339/econ-202-chapter-2-flash-cards Local and state governments should eliminate subsidies to professional sports franchises. An example of a price that changes only infrequently is the price of. What is the opportunity cost to Footville of increasing the production of shoes from 400 to 600? In a 2005 survey of a random sample of American Economic Association members, Robert Whaples (2006) asked of agreement with the following: Local and state governments in the U.S. should eliminate subsidies to … The Freakonomics blog has a discussion about whether cities and states should help pay for professional sports arenas and the weight of academic evidence says no: So we have two perspectives and one question: Do sports generate jobs and economic growth? 21. 4. Change ), “85% of economists agree that local and state governments should not subsidize professional sports”, whether cities and states should help pay for professional sports arenas and the weight of academic evidence says no, who wants to be the politician who let several thousand good jobs go to another state, I am skeptical of arguments that people in Cleveland are worse off because their sports teams haven’t won, having a big sports team can mask other issues. Mankiw also notes that only five … Government intervention is necessary to redistribute income within society. But with all of this evidence, why would the city of Sacramento recently vote to spend money to build a new arena so that the Sacramento Kings would stay in the city? Benefits of Stronger State Governments . Refer to Table 2-5. I also think that while this can be studied in economic terms, i.e., does helping to build a stadium lead to economic benefits for the city, or in political terms, this misses some of the point: having a sports team is also about status. 18. If you have an income of £2 million a year. Which arrow represents the flow of land, labor, and capital? When studying the effects of changes in public policy, economists believe that. dozens of pounds of grapes price of a pound of grapes 23. A politician who let this happen might be punished by opponents and by voters (though they too would then have to go against all of the evidence from studies). ( Log Out /  A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which combination of points show production possibilities only achievable with improvements in technology or increases in resources? 1. 9. Table 2-5 shows one set of production possibilities. Fiscal stimulus, minimum wages, monetary policy, health care, bank regulation -- on almost all the major issues of c. copy economic policy from Washington, D.C. d. prevent companies from outsourcing work. Production is efficient if the economy is producing at a point. 19. Marlins’ publicly-funded stadium not the exception among Major League Baseball teams | Legally Sociable, The Simpsons portrayed a (rare?) Refer to Table 2-3. Refer to Figure 2-17. According to the graph, the correlation between years of education and annual income is. 37. Home is a country that produces two goods, pears and cellular phones. Alaska, Iowa, Rhode Island, and Florida, for example, are all very different states with very different needs, populations, and values. (85%) Almost all economists agree that local and state governments should, 27. Which of the following would likely be studied by a microeconomist rather than a macroeconomist? Which of the following statements applies to economics, as well as to other sciences such as physics? Refer to Table 2-5. The x-coordinate of an ordered pair specifies the. And if they departed, those same people would be very unhappy with Kevin Johnson. It is possible for an economy to increase its production of both goods if the economy, 5. The nation's antitrust laws are enforced by economists at the Department of. An increase in income to £2.5 million gives only a marginal increase in happiness/utility. Refer to Figure 2-1. 38. In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often impractical to, 15. Actually, many economists love professional sports—including former Federal Reserve Chair Ben Bernanke, an ardent Washington Nationals fan.9 Rather, it is the provision of taxpayer money in the for… The movement from point B to point C could have been caused by, 35. I find browsing the Economic Experts panel useful to find where there is almost a unanimous consensus: ... Clicking through you can see a lot of things that most economists agree on (and some that they are split down the middle). But even liberal economists generally agree that it isn’t the most efficient system. Almost all economists agree that local and state governments should a. eliminate subsidies to professional sports franchises. At the other extreme, Marxist economists argue that the government should intervene in all areas of the economy to ensure the most efficient and equitable distribution of resources. usually an number less than zero, a negative. When surveyed, 86 percent of economists agreed that “local and state governments in the U.S. should eliminate subsidies to professional sports franchises.”8 Perhaps economists just do not like sports? Mankiw also notes that only five issues have more agreement among economists. Almost any question featuring the word always is false, especially. Most prefer such a tax to the most prominent alternative policy for tackling carbon emissions, cap and trade, according to a recent poll of expert economists. And such evidence has proven to be quite persuasive. And in the last decades of the 20th century, economists had some success persuading state and local governments to … Change ), You are commenting using your Google account. The opportunity cost of moving from point M to point L is. In between, most economists believe it is a question of balance, with the government intervening in areas where the market fails to provide a desirable outcome. 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