Which would be the most accurate statement? (LO8) a) There is almost no underground economy in the United States. b) Nearly half the goods and services that Americans consume are produced by the underground economy. c) Most of our lawn maintenance and domestic help is supplied by the underground economy. d) The production of the underground economy is included in our GDP.

Short Answer

Expert verified
The most accurate statement regarding the underground economy in the United States is: c) Most of our lawn maintenance and domestic help is supplied by the underground economy.

Step by step solution

01

Review each statement

Let's examine each statement and determine which one is the most accurate regarding the underground economy in the United States: a) There is almost no underground economy in the United States. - This statement is not accurate, as there is a presence of underground economy in US engaging in illegal activities or hidden from the authorities to avoid taxes and regulations. b) Nearly half the goods and services that Americans consume are produced by the underground economy. - This statement is an exaggeration. The underground economy does not account for nearly half of the goods and services consumed by Americans. It is a significant, but not nearly that large of a portion. c) Most of our lawn maintenance and domestic help is supplied by the underground economy. - While it's true that some lawn maintenance and domestic help are supplied by the underground economy in the form of unreported income or undocumented workers, it's not accurate to say that most of these services are provided by the underground economy. d) The production of the underground economy is included in our GDP. - The GDP measures the value of all goods and services produced within a country's borders. It typically does not include the production of the underground economy, as it is often unreported or illegal. Therefore, this statement is not accurate.
02

Choose the most accurate statement

Based on the analysis of each statement, the most accurate statement regarding the underground economy in the United States is: c) Most of our lawn maintenance and domestic help is supplied by the underground economy. Even though this statement is not entirely accurate, it is the most accurate among the given options. The underground economy does play a role in sectors like lawn maintenance and domestic help, even if it doesn't supply the majority of these services.

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