p. 196 Apply the appropriate label to each situation.The neighborhood kids sell lemonade when it is hotoutside.Your neighbors grow and eat their own vegetables from their private garden.Your child is paid $40 to walk your friends’ dog whilethey are on vacation.Your mom made a sweater for you for your birthday.Underground economyNon-market good
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p. 196Which of the following statements are true about the underground economy?Correct Answer(s)It is not possible to accurately measure the size of the underground economy.It is possible for the underground economy to have an eFect on the legitimate economy.Incorrect Answer(s)All of the goods and services traded in the underground economy are illegal.All underground economic activity is harmful to societyYou can ±gure out how much the economy has grown over the years by simply looking at nominal GDP.FALSE
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