Suppose That a City in Your State Is Trying to Attract

question 31

Essay

Suppose that a city in your state is trying to attract a sports tournament,which would entail spending a significant amount of money on marketing of the event and other costs that have no intrinsic value to residents of the city.The city leaders argue that hosting the sports tournament will increase commerce activity around the city because of the visitors who will be in town for the tournament.Consequently,they are lobbying you as the state governor to give them grants,which they say (credibly)is the only way they can afford to host the tournament.For your decision,should it matter whether it is a tournament between in-state teams or national teams? Explain.

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Definitions:

Demand Instrument

A financial document that requires payment of the amount specified on it upon demand by the holder.

Overdue

A state of being late or delayed in completing a payment, task, or fulfilling an obligation beyond the agreed timeframe.

Demand

The desire of purchasers to buy goods or services at a given price, which, combined with supply, determines market prices.

Defect

A flaw or imperfection in a product or system that can lead to its malfunction or inadequacy under expected conditions.