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:

Human Creations

Innovations, artworks, processes, and inventions that result from human imagination and intellect.

Capital

Resources made and used by people to produce and distribute goods and services, including buildings, machinery, and equipment.

Entrepreneurial Ability

The imagination required to develop a new product or process, the skill needed to organize production, and the willingness to take the risk of profit or loss

Natural Resources

Assets derived from the earth such as minerals, forests, water, and fertile land that can be used for economic gain.