Which of the following best describes the concept of the underground economy?(1 point)

Question

Responses

The underground economy refers to economic activity involving only the sale of final goods.
The underground economy refers to economic activity involving only the sale of final goods.

The underground economy refers to economic activity that is not recorded by GDP.
The underground economy refers to economic activity that is not recorded by GDP.

The underground economy refers to products made in the U.S. that are sold to other countries.
The underground economy refers to products made in the U.S. that are sold to other countries.

The underground economy refers to economic activity involving the sale of used goods and services.

Answer 1

The best description of the concept of the underground economy is:

The underground economy refers to economic activity that is not recorded by GDP.

This definition captures the essence of the underground economy, which includes all economic activities that are not formally reported or registered, such as illegal trade, unreported income, and informal work.