Federal Reserve Bank of Boston Economic Quiz
Safe! Baseball's New Deal
1. Major League Baseball (MLB) and the MLB Players Association (MLBPA) recently agreed to a new collective bargaining agreement (CBA), the first time in thirty years that an agreement was reached without a work stoppage. Which of the following seasons was NOT shortened by a strike or lockout?
2. Baseball owners proposed a 'luxury tax' on the top-salaried teams, with the proceeds going towards player benefits, industry growth, and developing baseball in poor countries. Though the MLBPA was adamant in their belief that a luxury tax would place a cap on salaries, the union ultimately agreed to a phased-in tax system. Beginning with the 2003 season, teams with player salaries and benefits totaling more than $117 million will be subject to a 17.5 percent tax. Which of the following teams would NOT have had to pay the tax if the system was in effect in 2002?
New York Yankees
Boston Red Sox
Los Angeles Dodgers
3. Beginning with the 2003 season, what will be the minimum total team salary?
4. The new CBA also establishes a drug testing system for the players, following recent allegations in the media about steroid use and narcotics abusers. Players will be tested for which of the following substances?
All of the above
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Economic quiz written by: Matt Rutledge - September 23, 2002
Views expressed in the economic quiz are those of the individual author.