CLEP Intro to Sociology

Category - Occupations

Jim works as a gardener for several people in wealthy neighborhood. His working conditions are sometimes unsafe and he receives cash on which he does not pay taxes. What part of the economy does Jim work in?
  1. Socialist economy
  2. Market economy
  3. Underground economy
  4. Government regulated economy
  5. Legitimate economy
Explanation
Answer: C - Individuals like Jim, who work in unregulated conditions and receive cash payments, are part of the underground economy. Some marginal workers such as housekeepers or nannies are part of the underground economy. The term legitimate economy refers to positions that are government regulated with employees that do pay taxes.
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