Which of the Following Is an Accurate Statement About State

question 5

Multiple Choice

Which of the following is an accurate statement about state lotteries?

• A) Because of individual demand for gambling, lottery proceeds are stable from year to year and easily predictable.
• B) Compared to other sources of state revenue, the cost of raising revenue from a lottery is quite low per dollar raised
• C) Because of broad participation rates through all income classes, the burden of the lottery is equivalent to that of a proportional tax.
• D) Earmarking of lottery proceeds for specific purposes, i.e., for primary and secondary education, has not always increased state spending for those purposes.

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