Why Should Owners of Teams Be Wary of Giving Players

question 41

Multiple Choice

Why should owners of teams be wary of giving players big contracts?

• A) The players' motivation drops, and they tend not to play as well the following year
• B) They players often complain that they are not receiving as high of a salary as they expected
• C) The players often focus too much on their performance as compared to their teammates
• D) The players often burnout within 3 years of receiving a large contract

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Definitions:

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling over a specific period of time.

CPI

This index reflects the mean shift in costs over time for a collection of consumer goods and services as experienced by urban buyers.

Ear of Corn

An ear of corn is the part of the corn plant that contains the kernels, which are the seeds of the plant, encased in a husk.

Nominal Interest Rate

The interest rate before adjustments for inflation, often reported on a per annum basis.