Ask Question
BusinessBusiness
10 January, 05:29

15. If the underground economy is sizable, then GDP will a. understate the economy'sperformance. b. overstate the economy's performance. c. fluctuate unpredictably. d. accurately reflect this underground activity

+5
Answers (1)
  1. 10 January, 09:08
    0
    Answer: understate the economy's performance (A)

    Explanation:

    The underground economy are the economic transactions that are seen to be illegal because the goods or services that are traded are unlawful in nature, or non-compliance of the transactions with governmental requirements. Examples of activities involved in underground economy are tax evasion, smuggling etc

    When the underground economy is sizable, it will have an effect on the gross domestic product as there will be an understatement in the performance of the economy since such activities are not included in the GDP.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “15. If the underground economy is sizable, then GDP will a. understate the economy'sperformance. b. overstate the economy's performance. c. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Kelly purchases a house from John. She borrows $75,000 from First City Bank that, along with her $25,000 down payment, equals the $100,000 purchase price of the home. Who has an insurable interest in this home?
Answers (1)
What is growth accounting? To what extent have increases in U. S. real GDP resulted from more labor inputs? From greater labor productivity?
Answers (1)
The balance in the supplies account, before adjustment at the end of the year, is $4,850. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $880.
Answers (1)
The government can raise revenue by taxing the sellers without creating deadweight loss when the demand for the goods being taxed is perfectly inelastic. A tax that raises no revenue for the government cannot have any deadweight loss
Answers (1)
what is the accounting measurement of an insurance company's future obligations to its policy owners?
Answers (1)
New Questions in Business
Which of the following would shift the production function upward? an increase in the price of oil an improvement in technology a decrease in the supply of labor a decline in the birth rate
Answers (1)
How can a "researcher acting as an instrument" in a qualitative study best ensure the trustworthiness of the data analysis and the conclusions?
Answers (2)
Which of these sentences is always true for for a parallelogram?
Answers (1)
There is no exact formula an employee should use to determine the number of deductions to take. True or False
Answers (1)
The most important consideration when selecting a site for a convention is that the convention hall is A. well-known. B. centrally located. C. inexpensive. D. small
Answers (1)
Home » Business » 15. If the underground economy is sizable, then GDP will a. understate the economy'sperformance. b. overstate the economy's performance. c. fluctuate unpredictably. d. accurately reflect this underground activity
Sign Up Forgot Password?