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.

Question

Quizplus · Accepted Answer

Lottery proceeds are often earmarked for specific purposes, such as education, but studies have shown that this does not always lead to an increase in state spending for those purposes. Instead, the state may reduce the amount allocated from the general fund, resulting in no net increase in funding for the earmarked purpose.

Which of the Following Is an Accurate Statement About State