If waitresses and taxi drivers do not report all of their income to the government, GDP will be understated. This is because the unreported income
A) involves the introduction of new goods.
B) is part of the underground economy.
C) is an example of nonmarket production.
D) represents an increase in leisure time.

Question

Quizplus · Accepted Answer

Unreported income from waitresses and taxi drivers falls under the underground economy, which is not accounted for in official GDP calculations.

If Waitresses and Taxi Drivers Do Not Report All of Their