The size of the underground economy as a percent of GDP is larger in the United States as compared to poorer countries such as Zimbabwe.

Question

Quizplus · Accepted Answer

This statement is false. The size of the underground economy is typically larger in poorer countries where formal employment opportunities are limited and regulations and taxes are often burdensome. According to a study by the International Monetary Fund (IMF), the size of the underground economy in the United States was estimated to be around 5% of GDP in 2017, while it was as high as 60% in some African countries like Zimbabwe.

The Size of the Underground Economy as a Percent of GDP