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Simple English definitions for legal terms
underground economy
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A quick definition of underground economy:
Underground Economy: The underground economy is a term used to describe all the economic activities that are not registered or reported to the government. These activities can include legal and illegal production of goods and services, such as gambling, prostitution, and drug dealing, as well as barter transactions and unreported incomes. It is also known as the shadow economy, black economy, or black market.
A more thorough explanation:
The underground economy, also known as the shadow economy, refers to all the economic activities that are not registered or reported to the government. These activities contribute to a country's gross national product (GNP) but are not included in official statistics.
- Gambling
- Prostitution
- Drug dealing
- Barter transactions
- Unreported incomes
The examples listed above illustrate the different types of economic activities that are part of the underground economy. These activities are not regulated by the government and are often associated with illegal or unethical practices. For instance, gambling and prostitution are illegal in many countries, while drug dealing is a criminal offense. Barter transactions and unreported incomes are also part of the underground economy because they are not reported to the government and are not subject to taxation.