ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -underground economy, also called shadow economy, transaction of goods or services not reported to the government and therefore beyond the reach of tax collectors and regulators.

Detailed explanation-2: -The underground economy represents income earned under the table and off the books. It can include legal and illegal, or black market, goods, including drug sales, money laundering and warehouse banking schemes.

Detailed explanation-3: -The broadest definition of the hidden economy includes legal economic activity that is deliberately concealed from measurement, illegal economic activities (including smuggling, drug dealing, and prostitution), and home production (including subsistence farming).

Detailed explanation-4: -An underground economy, or shadow economy, is where illegal transactions occur. It is also known as the informal economy, black market, and black economy.

Detailed explanation-5: -Also called the underground, informal, or parallel economy, the shadow economy includes not only illegal activities but also unreported income from the production of legal goods and services, either from monetary or barter transactions.