Around the World Activity

Chapter 10(21) Fiscal Policy and Debt—Around the World

Read the following articles and pages in order to answer the below questions.

1. According to the article in The Guardian, which of these is NOT given as a reason for the United Kingdom to subsidize creative industries?

Agriculture, manufacturing, and other industries are subsidized.

Creative industries contribute a great deal to the British GDP.

The arts are a central part of urban regeneration.

Art promotes peace between contending social classes.

2. With which statement would the author of The Guardian article MOST likely agree?

The arts have not been an important part of British culture in the past.

Art is capable of flourishing in society without public funding.

Creative industries, while vital, do not compare with manufacturing and agriculture in terms of importance to the British economy.

A great deal of important artistic culture would disappear from the UK if it was not funded.

3. In the article “The Case for Subsidizing Art (and Taxing Junk Entertainment),” which statement BEST categorizes the author’s view on “low art”?

Governments should tax junk art because it is damaging to the person in much the same way that smoking is.

Both high art and low art should be taxed because consumption is inelastic.

Governments should tax junk art because such a tax would be an efficient and fair way to raise revenue.

“Junk art,” while not the same quality as more sophisticated art, is nevertheless an important expression of human culture.

4. Which statement BEST explains the reasons professional sports arenas are subsidized in the United States, according to the article in SB Nation?

Despite conventional wisdom, the professional sports industry often does not have much financial capital with which to work.

There are no opposing voices.

Many states have laws binding financial support to professional sports teams.

It is expensive to build professional sports arenas, even for the NFL. Subsidies for sports arenas enjoy political support.

5. Which factor does the author provide as evidence to demonstrate consumers’ willingness to pay for consuming sports culture?

data from Facebook and other social media

purchases of sports paraphernalia, tickets, and other spending related to sports

public opinion polls

petitions signed in support of new sports arenas

6. Which statement is true of both the public provision of art and sports?

Fiscal policy surrounding art and sports facilitates cultural elements that might not be provided by the private sector.

Fiscal policy is not involved in the provision of art or sports.

Neither art nor sports is subsidized in Western societies.

Art and sports are examples of culture that is facilitated exclusively by the private sector.