What is the Underground Economy
The Underground Economy, also know as the Informal Economy or Shadow Economy, according to Investopedia can be defined as the following :
The underground economy refers to illegal economic activity. Transactions in the underground economy are illegal either because the good or service being traded is itself illegal or because an otherwise licit transaction does not comply with government reporting requirements. The first category includes drugs and prostitution in most jurisdictions. The second includes untaxed labor and sales, as well as smuggling goods to avoid duties. The underground economy is also referred to as the shadow economy, black market (not gray market) and informal economy. Source: Investopedia
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Original Source: Meriam Library, California State University-Chico
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