Professor: Economists argue that buying lottery tickets is an unwise use of resources, because the average payoff for the tickets sold in a lottery is much lower than the cost of a ticket. ███ ████ █████████ ██ ███████ ███ ███████ ██████ ████ ███ ██ ██████████ █████████ ████████ ██ ████ █████ ████ ███ ███████ ████ ██ █ ███████ ███ ██████ █████ █████ ████ ██████████ █████████ ██ ██ ██████ ███ ██ ██████████
The author concludes that the fact the average payoff for a lottery ticket is much lower than the cost of a ticket does not prove that buying lottery tickets is unwise. The author supports this conclusion by comparing lottery tickets to insurance policies. The average amount paid on these policies is much lower than the average cost of a policy, but people don’t think buying insurance is unwise.
The author assumes that buying an insurance policy is relevantly similar to buying a lottery ticket.
Which one of the following, ██ █████ ████ ███████ ███ ███████████ █████████
Individuals spend, on ████████ ████ ████ ██ █████████ ████ ██ ███████ ████████
Insurance companies generally ██████ █ ██████ ██████████ ██ █████ ███████ ████ ██ █████████████ ████ ███████ ██████████
Taking small financial █████ ███ █████ ███████ ████████ █████ ███████ ██ █████████ ████ ██████ █████████
In general, the ████ ██ ███████ ███ █████ █████ ██ █ ███████ ███ █████████████ █████ ████ ███ ████ ██ ██████████ █ ██████████ ████ █ ███████ █████████ ███████
The protection against ████ ████ █████████ ████████ ██ ████ █████████ ██ █████ ██████████ ████ ██ ███ ███████████ ██ █ ████████ █████