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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If the United States is viewed by foreigners as a great nation in which to invest, generating a large inflow of foreign investment, this will cause the United States to run a
a. deficit on the current account. b. surplus on the current account. c. deficit on the capital account. d. deficit on the official reserve account.
Which of the following will increase the level of human capital in an economy?
A. A decrease in the population. B. An increase in land mass. C. An increase in literacy rates. D. An increase in factory capacity.