A New Stadium Is Being Planned for the Local Professional

question 71

Essay

A new stadium is being planned for the local professional football team. One of the proposed funding methods involves the allocation of tax monies to build the stadium. To determine the public opinion of this plan, the first 100 people entering the stadium for a game are surveyed. Explain why the results of this survey might not be valid.

---

Definitions:

Increasing-Cost Industry

An industry in which production costs increase as output expands, often due to scarce resources or rising input prices.

Industry Expands

The process of a sector in the economy growing due to an increase in demand, production, and often, employment.

Allocative Efficiency

A state of the economy where the distribution of resources among different uses is optimal, ensuring that the goods being produced are what consumers prefer the most.

Producing Output

The process of generating goods or services as the result of economic activity.