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ECON 2001 The Underground Economy

The underground economy as per the ECON 2001 The Underground Economy course refers to economic transactions that are actually illegal, either because the goods or services traded are unlawful in nature, or may be the transactions fail to comply with governmental reporting requirements.

The term "underground economy" also as per the ECON 2001 The Underground Economy course is often used to refer to money earned from illicit activities like prostitution and the sale ofdrugs illegally. But it also actually refers to any unreported income, such as undeclared tips or gambling winnings and under-the-table payments made to employees.

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