Which of the following is considered to be included in the underground economy?

A. The value of the cleaning you do for your own home
B. Gambling winnings not reported on your taxes
C. A meal purchased in a restaurant that replaces a meal you could cook at home
D. The purchase of a used bicycle

Correct Answer: B

It is not illegal to win money from gambling (this, of course, varies from state to state). If you do not report the winnings as part of your income, however, you are attempting to evade taxes (which is illegal).