Answer:
When determining the state of the official economy, government officials use figures that are reported by companies, businesses, individuals, and organizations when they pay their income taxes. However, the underground economy involves other figures – those that are not a part of the “official” economy. The underground economy includes both income that is illegally earned, such as drug sales, prostitution, and illegal workers; as well as income that is legal but unreported such as tips and other cash-based earnings.