If a province made an illegal activity such as gambling or prostitution legal,then,other things the same,what would happen to GDP?
A) It would increase.
B) It would decrease.
C) It would not change because both legal and illegal production are included in GDP.
D) It would not change because these activities are never included in GDP.

Question

Quizplus · Accepted Answer

When an illegal activity such as gambling or prostitution is made legal, it becomes a part of the formal economy which can then be measured and taxed. This would increase overall economic activity in the province and therefore increase GDP.

If a Province Made an Illegal Activity Such as Gambling