If a State Made a Previously-Illegal Activity,such as Gambling or Prostitution,legal,then,other

question 48

Multiple Choice

If a state made a previously-illegal activity,such as gambling or prostitution,legal,then,other things equal,GDP

• A)decreases.
• B)increases.
• C)doesn't change because both legal and illegal production are included in GDP.
• D)doesn't change because these activities are never included in GDP.

---

Definitions:

Workers Pay

The compensation, including wages, salaries, and benefits, that an employee receives from an employer in exchange for their labor.

Excise Tax

A specific tax levied on certain goods, such as cigarettes or alcohol, usually to discourage their use or generate revenue.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount they actually pay.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, reflecting extra profit.