A normative economist might conclude that
a. a lottery can be conducted in several ways
b. certain types of lotteries raise millions of dollars
c. a lottery is a bad policy because it burdens the poor
d. a lottery is good because it separates people from their money
Ans: c. a lottery is a bad policy because it burdens the poor
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The table above describes the market for paper. The production of paper produces pollution. There are no external benefits. What is the quantity produced if the market for paper is unregulated?
A) 10 tons per week B) 60 tons per week C) 40 tons per week D) 30 tons per week
An increase in the real interest rate will cause an increase in ________
A) saving B) planned investment C) net exports D) all of the above E) none of the above
A decrease in equilibrium price increases consumer surplus because existing consumers leave the market due to this change in price
a. True b. False Indicate whether the statement is true or false
The fact that monopolistically competitive firms charge a price that exceeds marginal cost is responsible for the
a. business-stealing externality that is observed in monopolistically competitive markets. b. product-variety externality that is observed in monopolistically competitive markets. c. inefficiencies of the long-term losses earned by monopolistically competitive firms. d. persistence of positive profits into the long run for monopolistically competitive firms.