« previous next »

Author Question: Many state governments use lotteries to raise revenue. If a lottery is viewed as a tax, is it most ... (Read 89 times)

Pineapplelove6

  • Hero Member
  • *****
  • Posts: 560
on: Jun 29, 2018
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?

Question 2

Are restaurant coupons a form of price discrimination? Why or why not?
 
  What will be an ideal response?
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


johnharpe

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 29, 2018
Answer to Question 1

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.

Answer to Question 2

Yes, coupons are a form of price discrimination. People who are willing to take the time to clip coupons have a higher price elasticity of demand than people who are not. Coupons are a way for firms to cut the price paid by higher price elasticity consumerswithout having to cut the price for everyone else.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Earth as viewed from Lunar orbit during the Apollo 8 mission, Christmas Eve, 1968. Africa is at the Earth as viewed from Lunar orbit during the Apollo 8 mission, Christmas Eve, 1968. Africa is at the
Maps are important tools in political science as they help us see relationships between politics and Maps are important tools in political science as they help us see relationships between politics and
How Urban Is Your State? The Rural-Urban Makeup of the United States How Urban Is Your State? The Rural-Urban Makeup of the United States
Photomicrograph of Streptococcus pyogenes bacteria, 900x Mag. A pus specimen, viewed using ... Photomicrograph of Streptococcus pyogenes bacteria, 900x Mag. A pus specimen, viewed using ...
Conversion of F+ to an Hfr state occurs by integration of the F factor Conversion of F+ to an Hfr state occurs by integration of the F factor
Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ... Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ...
Video: Bone elongation - processes at the epiphyseal plate

For a complete list of videos, visit our video library