FINANCING

Name______________________________

Directions: Completely define the following terms. (2 points each). Use an example if necessary to describe the concept.

Opportunity Cost –

Negative Externalities-

Public Choice Theory-

Leakage-

Multiplier-

Gresham’s Law-

CVM-

Casuals-

Graduated Serial-

Straight serial-

TV Share-

Collective Bargaining-

Does a Player Tax (used to help finance a stadium) meet the fairness standard of vertical equity and the benefits principle….explain? 5 pts.

What is the most meaningful and accurate type of multiplier that economic impact studies should utilize?_________________________________________2 points

List 3 common components of public subsidy of stadiums? (3 points)

Fill in the blank boxes…Trace money being spent as part of economic impact through the economy…from the initial injection of visitor spending (2 points) through the first round of spending (9 points) pg 115 in book (handout in class). Also, according to the diagram below, tell me the 5 areas that result in leakage as part of this process? (5 points). Feel free to mark them with a *

Out of Town Spending

Initial injection of $$ goes to…

Retail

Motels

First Round of spending