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.

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Definitions:

Watered Stock

Stock that is issued to individuals below its fair market value.

Fair Market Value

The price a willing buyer would pay a willing seller in a transaction where both parties have reasonable knowledge of the relevant facts and neither is under compulsion to act.

No-Par Stock

Shares issued without a nominal or face value, where the value is determined by the price investors are willing to pay.

Less-Value Stock

Stock that is currently trading for less than the perceived value of the company, potentially indicating an undervalued investment opportunity.