Legalizing all forms of illegal activities
A)reduces GDP and reduces the size of the underground economy.
B)reduces GDP and increases the size of the underground economy.
C)increases GDP and reduces the size of the underground economy.
D)increases GDP and increases the size of the underground economy.

Question

Quizplus · Accepted Answer

Legalizing all forms of illegal activities would bring them into the formal economy, increasing GDP. This would also reduce the size of the underground economy as there would be less illegal activities occurring. Therefore, choice C is the best answer.

Legalizing All Forms of Illegal Activities