The underground economy a. includes otherwise legal transactions that go unreported or unrecorded. b. is larger for developed nations than developing nations when measured as a percent of gdp. c. excludes the amount of criminal activity in an economy. d. in the united states is insignificant is size when compared to the official measure of gdp.

The correct answer is option a.

Explanation:

The underground economy comprises of otherwise legal transactions that are not reported and recorded.  

These transactions are deemed illegal because they do not follow the reporting requirements of the government. It is also referred to as  the shadow economy or black market.  

It is difficult to measure the size of the underground economy because the transactions are not recorded and reported to the government.

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