Question

"Illegal income may not be considered as an economic activity". Defend or refute

the given statement with valid reason​

Answer 1

Answer:

State with reason whether the following statements are True or False.

1. Bank rate is always an effective measure to control credit. Defend or Refute

2 Higher the legal reserve ratio, higher will be the credit creation. True or False

Answer 2

Illegal income may not be considered as an economic activity - True

• Illegal revenue, because it has not been produced by legal economic activities, is unregistered or is properly reported to the government or competent authorities. Thus, as national income is efficiently computed, it is unaccounted for.
• The considerable size of the underground economy, which typically comprises both official and illegal economies, is not significant. Revenue from illegal activities is uncounted in the Gross domestic product, which is why the GDP also underestimates substantial economic activity.  
• They are not omitted because they are unethical, but there realistically is no reliable reporting of the specific numbers. In addition, cash payments to corrupt officials and businessmen "under the table" are also not recorded.