Question

Red (outer) oval is total production; green (inner) oval is officially measured production - GDP; blue oval (at right) is UG economy I help build a house in Columbus for Habitat for Humanity A legal US immigrant works for a law firm and reports her income to the IRS My daughter babysits for her nieces and does not report her income The US Government estimates the earnings of prostitutes in New York. Am armed robber holds up a pedestrian and takes his money. I clean the house and prepare meals for my children while in graduate school An arsonist burns down an apartment building, feeling joy from watching it burn Apple makes a cell phone in the US and reduces its US tax liability by paying 4 6 royalties to its subsidiary in Ireland A drug dealer in Chicago earns $100K/yr from his crack distribution business The BEA adjusts its income estimates for GDP to more closely match the 9 10 expenditure estimates

UG = Underground Economy

Answer 1