Problem: Sports Economics
1. Can cost-benefit analysis tell us how much to spend in subsidies to sports teams? Explain.
2. What is economic impact analysis (EIA)?
3. Under general obligation bonds, hotel and rental car taxes are sometimes used to generate revenue for the bond payments. With this method, who pays for the subsidy? Is this fair? And why are these types of taxes politically attractive?
4. Which pro sport would produce the most positive economic impact for a community? Why?