Question 1

Government tax revenues collected annually from casinos total approximately

Accepted Answer

A) $100 million. 
B) $500 million. 
C) $1 billion. 
D) $10 billion. 
A) $100 million. 
B) $500 million. 
C) $1 billion. 
D) $10 billion.

Question 2

If a casino locates in a small suburban/rural area within 20 miles of a larger city that already has a casino, the degree of "local substitution" is likely to be

Accepted Answer

A) nearly zero. 
B) nearly complete. 
C) actually negative. 
D) significant. 
A) nearly zero. 
B) nearly complete. 
C) actually negative. 
D) significant.

Question 3

Unregulated competitive markets for services with negative externalities, such as gambling, tend to

Accepted Answer

A) produce too little of the service to be efficient. 
B) produce too much of the service to be efficient. 
C) produce the efficient quantity of the service. 
D) produce too little of the service to satisfy the confirmed addict. 
A) produce too little of the service to be efficient. 
B) produce too much of the service to be efficient. 
C) produce the efficient quantity of the service. 
D) produce too little of the service to satisfy the confirmed addict.

Question 4

The increase in employment associated with operation of a new casino

Accepted Answer

A) tends to lower the prevailing wage paid to employees in other competing entertainment venues. 
B) is usually a source of rapid employment growth in other competing entertainment venues. 
C) is matched in part by reduced employment in other competing entertainment venues. 
D) is always entirely offset by reduced employment in other competing entertainment venues. 
A) tends to lower the prevailing wage paid to employees in other competing entertainment venues. 
B) is usually a source of rapid employment growth in other competing entertainment venues. 
C) is matched in part by reduced employment in other competing entertainment venues. 
D) is always entirely offset by reduced employment in other competing entertainment venues.

Question 5

Daily fantasy is legal

Accepted Answer

A) everywhere. 
B) nowhere. 
C) in some states and illegal in others. 
D) as long as it is on the internet. 
A) everywhere. 
B) nowhere. 
C) in some states and illegal in others. 
D) as long as it is on the internet.

Question 6

If "local substitution" is complete, then the economic impact of a casino is

Accepted Answer

A) significantly negative. 
B) zero. 
C) moderately negative. 
D) moderately positive. 
A) significantly negative. 
B) zero. 
C) moderately negative. 
D) moderately positive.

Question 7

Gambling is profitable to casinos because the expected payoff of every gamble (to the casino)is ______ the amount gambled.

Accepted Answer

A) equal 
B) greater than 
C) less than 
D) unrelated 
A) equal 
B) greater than 
C) less than 
D) unrelated

Question 8

The biggest difference between traditional sports gambling and daily fantasy is

Accepted Answer

A) traditional sports gambling bets are all settled are clearly observable from the outcome of an event whereas daily fantasy is settled based on a points formula. 
B) daily fantasy is always settled in a day, whereas traditional sports gambling bets take a whole season. 
C) daily fantasy are much smaller bets. 
D) daily fantasy bets are always legal. 
A) traditional sports gambling bets are all settled are clearly observable from the outcome of an event whereas daily fantasy is settled based on a points formula. 
B) daily fantasy is always settled in a day, whereas traditional sports gambling bets take a whole season. 
C) daily fantasy are much smaller bets. 
D) daily fantasy bets are always legal.

Question 9

Each year, Americans visiting casinos gamble a total of

Accepted Answer

A) $3 million. 
B) $30 million. 
C) $38 billion. 
D) $300 billion. 
A) $3 million. 
B) $30 million. 
C) $38 billion. 
D) $300 billion.

Question 10

During the 1990s and early 2000s, the Indiana counties with casino gambling had increases in personal income ________ the Indiana counties without casino gambling.

Accepted Answer

A) significantly greater than 
B) slightly greater than 
C) significantly less than 
D) slightly less than 
A) significantly greater than 
B) slightly greater than 
C) significantly less than 
D) slightly less than

Question 11

The percentage of all gambles that casinos are expected to win is called the

Accepted Answer

A) cost. 
B) hit. 
C) vig. 
D) sugar. 
A) cost. 
B) hit. 
C) vig. 
D) sugar.

Question 12

The external costs associated with gambling include

Accepted Answer

A) the losses to gamblers. 
B) the cost of security at casinos. 
C) the crowd control problems at casinos. 
D) the effects on the gamblers' family. 
A) the losses to gamblers. 
B) the cost of security at casinos. 
C) the crowd control problems at casinos. 
D) the effects on the gamblers' family.

Question 13

If a city, like Denver, that is quite far from the nearest other urban area, were to add a casino, the "local substitution" argument would suggest that there would be

Accepted Answer

A) a moderate economic downside. 
B) a significant economic upside. 
C) a moderate economic upside. 
D) a significant economic downside. 
A) a moderate economic downside. 
B) a significant economic upside. 
C) a moderate economic upside. 
D) a significant economic downside.

Question 14

If a new casino comes to a city that already has one, which economic impact has little to no "local substitution" offsets to consider

Accepted Answer

A) the construction costs. 
B) the employment at the casino. 
C) the employment at restaurants near the casino. 
D) the purchase of souvenirs at the casino. 
A) the construction costs. 
B) the employment at the casino. 
C) the employment at restaurants near the casino. 
D) the purchase of souvenirs at the casino.

Question 15

Which of the following would not be an external cost associated with gambling?

Accepted Answer

A) The increase in homelessness associated with casinos. 
B) The single gambler's damaged credit rating. 
C) The increase in crime near casinos. 
D) The effects on the gamblers' family. 
A) The increase in homelessness associated with casinos. 
B) The single gambler's damaged credit rating. 
C) The increase in crime near casinos. 
D) The effects on the gamblers' family.

Question 16

The evidence of the net economic impact of casino gambling, suggests that it is

Accepted Answer

A) significantly positive. 
B) modestly negative. 
C) modestly positive. 
D) significantly negative. 
A) significantly positive. 
B) modestly negative. 
C) modestly positive. 
D) significantly negative.

Question 17

Economists generally do not agree to limit the private and voluntary actions of people, but in the case of gambling, economists will admit that gambling

Accepted Answer

A) can be addictive, so regulation could be justified for that reason. 
B) teaches people about statistics. 
C) has external benefits, so it must be subsidized. 
D) is immoral, so it must be prohibited. 
A) can be addictive, so regulation could be justified for that reason. 
B) teaches people about statistics. 
C) has external benefits, so it must be subsidized. 
D) is immoral, so it must be prohibited.

Question 18

The city in which a new casino is likely to have the smallest economic impact would be

Accepted Answer

A) Las Vegas (where many already exist). 
B) St. Louis (where three already exist). 
C) Kansas City (where two already exist). 
D) Denton, TX (north of Dallas, where no casinos already exist). 
A) Las Vegas (where many already exist). 
B) St. Louis (where three already exist). 
C) Kansas City (where two already exist). 
D) Denton, TX (north of Dallas, where no casinos already exist).

Question 19

The perception that casinos have a dramatic impact on a local economy is

Accepted Answer

A) without any foundation whatsoever. 
B) reasonable, given their size but overstated given the degree of local substitution. 
C) reasonable, and in fact, understated. 
D) reasonable, and exactly on the mark. 
A) without any foundation whatsoever. 
B) reasonable, given their size but overstated given the degree of local substitution. 
C) reasonable, and in fact, understated. 
D) reasonable, and exactly on the mark.

Exam 47: The Economic Impact of Casino Gambling

Government tax revenues collected annually from casinos total approximately

If a casino locates in a small suburban/rural area within 20 miles of a larger city that already has a casino, the degree of "local substitution" is likely to be

Unregulated competitive markets for services with negative externalities, such as gambling, tend to

The increase in employment associated with operation of a new casino

Daily fantasy is legal

If "local substitution" is complete, then the economic impact of a casino is

Gambling is profitable to casinos because the expected payoff of every gamble (to the casino)is ______ the amount gambled.

The biggest difference between traditional sports gambling and daily fantasy is

Each year, Americans visiting casinos gamble a total of

During the 1990s and early 2000s, the Indiana counties with casino gambling had increases in personal income ________ the Indiana counties without casino gambling.

The percentage of all gambles that casinos are expected to win is called the

The external costs associated with gambling include

If a city, like Denver, that is quite far from the nearest other urban area, were to add a casino, the "local substitution" argument would suggest that there would be

If a new casino comes to a city that already has one, which economic impact has little to no "local substitution" offsets to consider

Which of the following would not be an external cost associated with gambling?

The evidence of the net economic impact of casino gambling, suggests that it is

Economists generally do not agree to limit the private and voluntary actions of people, but in the case of gambling, economists will admit that gambling

The city in which a new casino is likely to have the smallest economic impact would be

The perception that casinos have a dramatic impact on a local economy is

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economics of Terrorism

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