In an informal economy ________.
A) market value of all officially recognized final goods and services produced within a country is substantially lowered
B) economic transactions are not officially recorded and are therefore left out of national GDP calculations
C) exchange rates are low
D) the household income is substantially larger than that in a formal economy

Question

Quizplus · Accepted Answer

In an informal economy, economic transactions are not officially recorded, which means they are not included in the national Gross Domestic Product (GDP) calculations. This is a defining characteristic of informal economies, distinguishing them from formal economies where transactions are officially recorded and taxed.

In an Informal Economy ________