Answer both illegal transactions and legal

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Unformatted text preview: at percentage of all transactions these types of transactions account for? ANSWER: Both illegal transactions and legal transactions that government authorities do not know about (such as cash transactions that do not include a receipt) make up what is called the underground economy. Some economists estimate that the underground economy in the United States is about 13 percent of the regular economy. In other words, for every $100 transaction in the regular economy, there is a $13 transaction in the underground economy. Keep in mind, though, that it is somewhat difficult to get a really good estimate of the underground economy because, by definition, it is largely invisible to economists. It is difficult to count what people are trying to prevent you from counting. Transactions of Legal Goods and Services with No Record Suppose a gardener goes to someone’s house and offers to mow the lawn and prune the shrubbery for $35 a week. The person agrees. The gardener then asks that he be paid in cas...
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