"Underground" economic activity can best be described as
A)the construction of subway transportation.
B)the building of foundation structures for skyscrapers.
C)the mining and oil industries.
D)barter or cash activity that is not reported as income.

Question

Quizplus · Accepted Answer

Underground economic activity refers to economic transactions that are not recorded by the government, and thus are not included in official GDP calculations. This includes barter or cash transactions that are not reported as income, such as buying and selling goods under the table, paying wages in cash without reporting them to the government, or even illegal activities such as drug trafficking. Options A, B, and C are all examples of legal economic activities that are recorded in official economic statistics.

"Underground" Economic Activity Can Best Be Described as