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What percentage of income is spent on lottery tickets by Instructions: Enter your responses rounded to two decimal places. a. A low-income family with an income of $20,000 per year? % b. A middle-income family with an income of $60,000 per year? %

What percentage of income is spent on lottery tickets by Instructions: Enter your responses rounded to two decimal places. a. A low-income family with an income of $20,000 per year? % b. A middle-income family with an income of $60,000 per year? %

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What percentage of income is spent on lottery tickets by Instructions: Enter your responses rounded to two decimal places. a. A low-income family with an income of $20,000 per year? % b. A middle-income family with an income of $60,000 per year? %
Transcribed Image Text:What percentage of income is spent on lottery tickets by Instructions: Enter your responses rounded to two decimal places. a. A low-income family with an income of $20,000 per year? % b. A middle-income family with an income of $60,000 per year? %
IN THE NEWS State Lotteries: A Tax on the Dumb and the Poor Americans now spend over $70 billion a year on lottery tickets. That's more than we spend on sporting events, books, video games, movies, and music combined. That spending works out to about $640 a household. Poor people are proportionally the biggest buyers of lottery tickets. Households with less than $25,000 of income spend $1,100 a year on lottery tickets. By contrast, households with more than $50,000 of income buy only $300 of lottery tickets each year. Education also affects lottery spending. 2.7 percent of high school dropouts are compulsive lottery players, while only 1.1 percent of college grads play compulsively. Since lottery games are a sucker's game to start with - payouts average less than 60 percent of sales - lotteries are effectively a regressive tax on the dumb and the poor. Source: Research on lottery sales
Transcribed Image Text:IN THE NEWS State Lotteries: A Tax on the Dumb and the Poor Americans now spend over $70 billion a year on lottery tickets. That's more than we spend on sporting events, books, video games, movies, and music combined. That spending works out to about $640 a household. Poor people are proportionally the biggest buyers of lottery tickets. Households with less than $25,000 of income spend $1,100 a year on lottery tickets. By contrast, households with more than $50,000 of income buy only $300 of lottery tickets each year. Education also affects lottery spending. 2.7 percent of high school dropouts are compulsive lottery players, while only 1.1 percent of college grads play compulsively. Since lottery games are a sucker's game to start with - payouts average less than 60 percent of sales - lotteries are effectively a regressive tax on the dumb and the poor. Source: Research on lottery sales
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