Many state governments use lotteries to raise revenue. If a lottery is viewed as a tax, is it most likely a progressive tax or a regressive tax?
What information would you need to determine whether the burden of a lottery is progressive or regressive?
The lottery "tax" is generally considered to be regressive because data show that poorer people spend a greater share of their incomes on lottery tickets than do people with higher incomes. The data we need to determine if the burden of a lottery is progressive or regressive are the different income brackets and the percentage of income people in each income bracket spend on the lottery.
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Use the information in the following table to answer the next question. In the table, investment is in billions.(1) Interest Rate(2) Investment (billions of dollars)(3) Investment (billions of dollars)4%$100$8059070680607705086040Suppose the Fed increases the interest rate from 5 to 6%. As a result of this increase in the interest rate, using column (2) investment will ________.
A. increase by $10 billion B. increase by $20 billion C. decrease by $10 billion D. decrease by $20 billion
When the required reserve ratio is lowered,
A. increases, and the amount of excess reserves increases in the banking system. B. decreases, and the amount of excess reserves increases in the banking system. C. decreases, and the amount of excess reserves decreases in the banking system. D. increases, and the amount of excess reserves decreases in the banking system.
The industry elasticity of demand for telephone service is ?2, while the elasticity of demand for a specific phone company is ?5. What is the Rothschild index?
A. 0.4 B. 0.7 C. 0.2 D. 0.5
When monopolists perfectly price discriminate, they
A. attempt to capture consumer surplus as profit. B. charge different prices to different buyers. C. can eliminate the deadweight loss to society of a monopoly. D. All of the above are correct.