The underground economy:
A) is included in the latest GDP accounts.
B) includes only illegal activities.
C) includes domestic workers for whom Social Security tax is not collected.
D) excludes the illegal drug trade.

Question

Quizplus · Accepted Answer

The underground economy includes domestic workers for whom Social Security tax is not collected, among other informal economic activities. It also includes illegal activities and the illegal drug trade, but those are not the only components. The underground economy is not included in the official GDP accounts, as it is difficult to measure and often goes unreported.

The Underground Economy