Questions: 1. What do salary caps used by sports leagues limit? a. the amount the league can pay a single payer each year b. the total amount the league can pay new players each year c. the total salaries a league can pay each year d. the total salaries a league can pay over a six-year period

1. What do salary caps used by sports leagues limit? a. the amount the league can pay a single payer each year b. the total amount the league can pay new players each year c. the total salaries a league can pay each year d. the total salaries a league can pay over a six-year period
Transcript text: 1. What do salary caps used by sports leagues limit? a. the amount the league can pay a single payer each year b. the total amount the league can pay new players each year c. the total salaries a league can pay each year d. the total salaries a league can pay over a six-year period
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Solution

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The answer is C: the total salaries a league can pay each year.

Explanation for each option:

a. The amount the league can pay a single player each year:

  • This option is incorrect because salary caps typically limit the total amount a team can spend on all players collectively, not just a single player.

b. The total amount the league can pay new players each year:

  • This option is incorrect because salary caps generally apply to the total payroll of a team, including both new and existing players, rather than just new players.

c. The total salaries a league can pay each year:

  • This option is correct. Salary caps are designed to limit the total amount of money that a team can spend on player salaries in a given year. This helps to maintain competitive balance within the league by preventing wealthier teams from outspending others.

d. The total salaries a league can pay over a six-year period:

  • This option is incorrect because salary caps are typically set on an annual basis, not over a multi-year period. The cap is usually recalculated each year based on league revenues and other factors.
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