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External Social Benefits: During recent years, professional sports have enjoyed an unprecedented boom all across the United States and Canada. Team revenues have skyrocketed with growing fan interest and attendance, thriving broadcast revenues, and flourishing corporate sponsorship support. At the same time, major and minor league teams in baseball, football, basketball, and hockey have come to increasingly rely upon public funding to cover construction costs and maintenance expenses for sport facilities.
A. Describe the nonrival consumption concept as it applies to publicly-funded sport facilities.
B. Describe the nonexclusion consumption concept as it applies to publicly-funded sport facilities.
C. In terms of the external social benefits concept, is the equity argument in favor of public support for sport facilities as strong as it is for industrial development in general
Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion i..
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