A question facing many U.S. states is whether to allow casinogambling. States with casino gambling have seen a substantialincrease in tax revenue flowing to state government. This revenuecan be used to finance schools, repair roads, maintain socialprograms, or reduce other taxes.
a. Recall that efficiency means producing what people want atthe least cost. Can you make an efficiency argument in favorof allowing casinos to operate?
b. What nonmonetary costs might be associated with gambling?Would these costs have an impact on the efficiencyargument you presented in part a?
c. Using the concept of equity, argue for or against the legalizationof casino gambling