Chapter1: The Wealth Of Nations: Ownership And Economic Freedom
Section: Chapter Questions
Problem 2E
Related questions
Question
What will happen if you make the underground economy legal?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
Underground economy is the economic activities which are beyond the reach of tax regulators and collectors and are not reported to the government. It includes activities which are illegal like the trade of stolen commodities, drugs, fraud and illegal gambling. This is also known as shadow economy.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Economics:](https://www.bartleby.com/isbn_cover_images/9781285859460/9781285859460_smallCoverImage.gif)
![Economics Today and Tomorrow, Student Edition](https://www.bartleby.com/isbn_cover_images/9780078747663/9780078747663_smallCoverImage.gif)
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
![Economics:](https://www.bartleby.com/isbn_cover_images/9781285859460/9781285859460_smallCoverImage.gif)
![Economics Today and Tomorrow, Student Edition](https://www.bartleby.com/isbn_cover_images/9780078747663/9780078747663_smallCoverImage.gif)
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co