Explain the meanings of: Underground economy, Informal economy and Shadow economy.
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1.North American term for black economy.
2.The informal sector, informal economy, or grey economy is the part of an economythat is neither taxed, nor monitored by any form of government. Unlike the formaleconomy, activities of the informal economy are not included in the gross national product (GNP) and gross domestic product (GDP) of a country.
3.illicit economic activity existing alongside a country's official economy, e.g. black market transactions and undeclared work.
2.The informal sector, informal economy, or grey economy is the part of an economythat is neither taxed, nor monitored by any form of government. Unlike the formaleconomy, activities of the informal economy are not included in the gross national product (GNP) and gross domestic product (GDP) of a country.
3.illicit economic activity existing alongside a country's official economy, e.g. black market transactions and undeclared work.
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The shadow economy refers to all work activity and business transaction that occur ‘below the radar’ – economic activity that is undeclared and for which taxes that should be paid are not.
Also known as the informal sector, the black economy, the underground economy, or the gray economy, the shadow economy includes criminal activities such as drug dealing and smuggling, as well as legal jobs, such as gardening, working in construction, or selling products to car drivers at traffic lights.
This part of the economy also includes situations where individuals are forced to work as slaves with no pay, or where work is carried out in exchange for things other than money.
When economists are calculating the GDP (gross domestic product) of a country, they do not include what goes on in the shadow economy.
This means that every country across the world is probably considerably wealthier than official statistics suggest.
In countries where the shadow economy is large in proportion to total GDP, government revenue is low. This means that either public services are poor, or those in the formal economy are taxed at a higher rate. The problem is that high taxation rates encourage people to stay ‘below the radar’.
The informal sector, informal economy, or grey economy[1][2] is the part of an economy that is neither taxed, nor monitored by any form of government. Unlike the formal economy, activities of the informal economy are not included in the gross national product (GNP) and gross domestic product (GDP) of a country.[3] The informal sector can be described as a grey market in labour
Also known as the informal sector, the black economy, the underground economy, or the gray economy, the shadow economy includes criminal activities such as drug dealing and smuggling, as well as legal jobs, such as gardening, working in construction, or selling products to car drivers at traffic lights.
This part of the economy also includes situations where individuals are forced to work as slaves with no pay, or where work is carried out in exchange for things other than money.
When economists are calculating the GDP (gross domestic product) of a country, they do not include what goes on in the shadow economy.
This means that every country across the world is probably considerably wealthier than official statistics suggest.
In countries where the shadow economy is large in proportion to total GDP, government revenue is low. This means that either public services are poor, or those in the formal economy are taxed at a higher rate. The problem is that high taxation rates encourage people to stay ‘below the radar’.
The informal sector, informal economy, or grey economy[1][2] is the part of an economy that is neither taxed, nor monitored by any form of government. Unlike the formal economy, activities of the informal economy are not included in the gross national product (GNP) and gross domestic product (GDP) of a country.[3] The informal sector can be described as a grey market in labour
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