Suppose a Lottery Ticket Costs $1 and the Probability That

question 20

Multiple Choice

Suppose a lottery ticket costs $1 and the probability that a holder will win nothing is 99%.What must the jackpot be for this to be a fair bet?

• A)10
• B)100
• C)1,000
• D)10,000

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Definitions:

Price Level

A general measure of the cost of goods and services within an economy or specific market at a given time.

Real GDP

The total value of all goods and services produced within a country in a year, adjusted for inflation, reflecting the real purchasing power.

Aggregate Demand

The cumulative requests for goods and services in an economy, aimed at a fixed price level within a set timeline.

Long-Run Effect

The impact of economic policies or events that become apparent and have a sustained influence over an extended period.