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

Question

Quizplus · Accepted Answer

This statement is false. The size of the underground economy as a percent of GDP is typically larger in poorer countries where official channels of commerce are limited or costly, while it is smaller in wealthier countries with stronger regulatory systems and more opportunities to work legally. Zimbabwe, for example, has a high rate of informal economic activity. Canada, on the other hand, has a relatively small underground economy compared to many other countries.

The Size of the Underground Economy as a Percent of GDP