An electrician accepts payment only in cash to avoid taxes.If he is paid $100,________.
A) the GDP of his country will increase
B) the GDP of his country will fall
C) the trade surplus of his country will increase
D) the GDP of his country will remain unchanged

Question

Quizplus · Accepted Answer

The GDP of his country will remain unchanged because the transaction is not reported and thus does not affect the official economic statistics. Transactions that are not reported to the tax authorities, such as under-the-table cash payments, do not get included in GDP calculations.

An Electrician Accepts Payment Only in Cash to Avoid Taxes