Which of the Following Is Not True Regarding the Underground

question 41

Multiple Choice

Which of the following is not true regarding the underground economy?

• A) On average, for the 2000 to 2012 time period, it is estimated that the underground economy accounted for between 16 and 17 percent of GDP in OECD countries.
• B) On average, for the 2000 to 2012 time period, it is estimated that the underground economy accounted for between 30 and 50 percent of GDP in emerging economies.
• C) The underground economy is estimated to have exceeded 60 percent in Bolivia, Panama, and Zimbabwe.
• D) The underground economy in the United States decreased from 8 percent of GDP in 1970 to less than 4 percent in 2003.
• E) Large underground economies can create problems for public policy makers.

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Definitions:

Complements

Goods or services that are used together, where an increase in demand for one leads to an increase in demand for the other.

Quantity Supplied

The total number of goods or services that manufacturers are ready and can provide on the market at a particular price level.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Supply Curve

A visual depiction showing the link between a product or service's price and the amount of it a supplier is prepared and capable of offering for sale.