Multiple Choice
Which of the following transactions would take place in the "underground economy"?
A) Elizabeth tells her mother she's going to work but she really goes to see a movie.
B) Paul buys 30 litres of gasoline for $1.29 a liter, not realizing that a fraction of that price goes to the government as tax revenue.
C) John makes chain-link belts and necklaces and sells them at a local flea market for cash to avoid paying taxes.
D) Matt bought an iPad for $499 but decided to sell it on eBay instead of keeping it.
E) Sam works as a consultant on the side and doesn't tell the university he works for.
Correct Answer:

Verified
Correct Answer:
Verified
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