Which of the Following Is a Logical Reason for a State

question 1

Multiple Choice

Which of the following is a logical reason for a state to implement a lottery as a way to increase state revenue?

• A) Lottery funds usually bring in a large share of the state's total revenue.
• B) Lottery revenue provides a stable source of funds that can be used as the fiscal base for important social programs.
• C) Lotteries have low administrative costs because private vendors sell all the tickets.
• D) Lotteries are a way for the state to receive money from its citizens without levying a tax.

---

Definitions:

Leisure

Free time spent away from business, work, and domestic chores, often used for relaxation, recreation, or hobbies.

Substitution Effect

The effect of a change in the price of a good or service on the demand for that good or service, due to consumers switching to or from substitutes.

Wages

The fixed regular payment, usually calculated on an hourly, daily, or weekly basis, paid by an employer to an employee for work performed.

Leisure

Time spent away from work and other obligations, used for relaxation or chosen activities.