Question

A. In 1956, Dwight Eisenhower signed the Federal Aid Highway Act, developing the interstate highway system and reducing the cost of travel between cities. How do you think this affected revenue distribution among professional sports teams, and salary distribution among professional athletes? Explain.

B. Which do you think increased the salaries of NBA players more – national broadcasts of games on network TV and TNT, or local broadcasts of games on regional cable networks? Explain.

Answer 1

A. An increase in the share of the government expenditure to develop the interstate highway system will reduce the share of expenditure distributed among the professional sports team and salary distribution among the professional athletes because the share going to highway system has increased.

B. The national broadcasts of games on network TV and TNT will increase the salaries of NBA players more as compared to the local broadcasts of games on regional cable networks. This is because national broadcasts will make them more known and popular as compared to regional broadcast and thus will lead to increase in their salaries.