How Does Prize Money Work in Tennis?

Answer the following questions to check your understanding of the story.

1) Why is winner’s prize money almost double that of the runner-up?

a) to encourage sufficient effort from both players

b) to encourage entry by more tennis players

c) to compensate for greater preparation costs incurred by the winner

d) to award the player who is the better athlete

2) How does the Lorenz cure for professional tennis athletes compare with the Lorenz curve for non-athletes?

The Lorenz curve for professional tennis athletes ____________ Lorenz curve for non-athletes.

a) lies much further from the line of equality than the

b) is below the line of equality unlike the

c) is above the line of equality unlike the

d) lies much closer to the line of equality than the

3) How does the Gini ratio of professional tennis athletes compare with the Lorenz curve of non-athletes?

The Gini ratio of professional tennis athletes is ___________.

a) higher than that of non-athletes

b) equal to 1 and the Gini ratio of non-athletes equals 0

c) lower than that of non-athletes

d) equal to the Gini ratio of non-athletes

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