the underground economy is the informal economy

that is all the trade and work that happens off the books, under the table, outside of the sight and reach of government rules and taxes ⦁ some are illegal, most are mundane

⦁ What are some indirect macroeconomic ways economists have come up with to try to estimate the informal economy?

⦁ total income vs its total expenditures ⦁ theyd be equal if it wasn't for the informal economy ⦁ they usually occur in cash, the transactions ⦁ cash demand = possible size of informal economy elec is indicator

⦁ The underground economy is less active in developed countries, where economists estimate it’s between

10-20% of total GDP. In the U.S., the underground economy is probably worth somewhere between 1-2 trillion dollars.

⦁ According to the UN, organized crime is an

$870 billion/year business. About 1.5% of global GDP. drug trafficking is the biggest chunk of that.

. Some ethicists and economists argue that the market for kidneys should be legalized ⦁ What are some risks of making the kidney market legal?

⦁ might not get the care they need ⦁ diseased or non matching organs ⦁ no recourse if you illegally buy something bad

⦁ What are some examples of the lack of safety-net in most underground economy jobs?

⦁ no sick time ⦁ health insurance ⦁ no over time ⦁ might not get paid ⦁ no safety precautions or regulations ⦁ often means poor working conditions ⦁ women and migrant laborers often take these ⦁ people who do not have access to better jobs

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32 econ

Question	Answer
the underground economy is the informal economy	that is all the trade and work that happens off the books, under the table, outside of the sight and reach of government rules and taxes ⦁ some are illegal, most are mundane
⦁ What are some indirect macroeconomic ways economists have come up with to try to estimate the informal economy?	⦁ total income vs its total expenditures ⦁ theyd be equal if it wasn't for the informal economy ⦁ they usually occur in cash, the transactions ⦁ cash demand = possible size of informal economy elec is indicator
⦁ The underground economy is less active in developed countries, where economists estimate it’s between	10-20% of total GDP. In the U.S., the underground economy is probably worth somewhere between 1-2 trillion dollars.
⦁ According to the UN, organized crime is an	$870 billion/year business. About 1.5% of global GDP. drug trafficking is the biggest chunk of that.
. Some ethicists and economists argue that the market for kidneys should be legalized ⦁ What are some risks of making the kidney market legal?	⦁ might not get the care they need ⦁ diseased or non matching organs ⦁ no recourse if you illegally buy something bad
⦁ What are some examples of the lack of safety-net in most underground economy jobs?	⦁ no sick time ⦁ health insurance ⦁ no over time ⦁ might not get paid ⦁ no safety precautions or regulations ⦁ often means poor working conditions ⦁ women and migrant laborers often take these ⦁ people who do not have access to better jobs

Created by: tomtom56789

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