Question

A professional gambler moves from a state where gambling is illegal to a state where gambling is legal. Most of his income was, and continues to be, from gambling. His move A. raises GDP. B. decreases GDP. C. doesn't change GDP because gambling is never included in GDP. D. doesn't change GDP because in either case his income is included.

Answer 1

The answer is C.

Step-by-step explanation:

In calculating GDP of a country, illegal activities like gambling, betting, proceeds of crime, buying and selling of drugs are nor counted in the computation of GDP.

GDP can be calculated as follows:

C + G + I + (X-M)

Where:

C is Consumers' consumption/spending

G is Government's consumption/spending

I is business investment

X is the country's exports

M is the country's imports.