The size of underground economies differs across countries. In Greece, the underground economy has been estimated to be as big as 30% of GDP; in Spain, 25%; in Italy, 20%; and in the United States, about 7%. Given this information, official GDP measures understate true economic activity the most in ______.

A. Greece
B. The United States
C. Italy

Correct Answer: A

Since Greece has the reportedly largest relative underground economy, official statistics underestimate Greek production the most.