When we refer to the hidden economy we mean unrecorded income owing to ?
Correct answer: A. tax evasion
- A. tax evasion
- B. poor statistics
- C. the lags between statistical collection and publication
- D. smuggling
Explanation
The hidden economy includes income deliberately kept out of official records, commonly to evade taxes. Poor statistics may cause measurement errors, but they do not define the hidden economy.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
Short-run equilibrium output means that aggregate demand __________ actual output?
When investment is assumed to autonomous the slope of the AD schedule is determined by the ?
If a result of households wish to save more there is a change in equilibrium income and no change in equilibrium saving this is an example of ?
Real GNP measures income ?
In the circular flow we would expect leakages to ___________ injections?
Leakages from the circular flow are _________ and __________?