Which of the Following Would Tend to Increase the Value

question 173

Multiple Choice

Which of the following would tend to increase the value of officially measured GDP?

• A)decriminalization of drugs such as marijuana and cocaine 
• B)decriminalization of prostitution 
• C)decriminalization of gambling on basketball and football 
• D)all of the above

---

Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a product or service.

Shut Down

A short-term decision by a firm to cease operations when variable costs exceed revenues, typically in a perfect competition scenario.

Short Run

A time period in economics during which at least one factor of production is fixed, limiting the ability of the economy or firm to fully adjust.

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to any change.