Black Economy
Definition of 'Black Economy'The segment of a country's economic activity that is derived from sources that fall outside of the country's rules and regulations regarding commerce. The activities can be either legal or illegal depending on what goods and/or services are involved. |
|
Investopedia explains 'Black Economy'For instance, a construction worker who is paid under the table will neither have taxes withheld, nor will the employer pay taxes on the his earnings. The construction work is legal; it is the nonpayment of taxes that classifies the event as part of the black economy. The illegal-weapons trade is an example of black-economy activity that is illegal.Black markets are those goods and services that form the black (or underground) economy. Typically, black markets arise when a government restricts economic activity for particular goods and services, either by making the transaction illegal or by taxing the item so much that it becomes cost-prohibitive. A black market may arise to make illegal goods and services available or to make expensive items available for less money (such as pirated software). |
Related Definitions
Articles Of Interest
-
How To Report A Tax Cheat
If you report a tax evader to the IRS, you could be eligible for a reward. -
Taking A Look At Tax Havens
These tax-free zones might sound appealing, but the consequences often aren't. -
The Nash Equilibrium
Nash Equilibrium is a key concept of game theory, which helps explain how people and groups approach complex decisions. Named after renowned mathematician John Nash, the idea of Nash Equilibrium ... -
Forces Behind Interest Rates
Get a deeper understanding of the importance of interest rates and what makes them change. -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed. -
Great Company Or Growing Industry?
Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth. -
Prisoner's Dilemma
Learn more about this classic game theory scenario. -
Is Growth Always A Good Thing?
Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble. -
What Is "Chained CPI?"
Chained CPI is one of many ways to approximate the impact of rising or falling prices to consumers' pocketbooks. -
Natural Disasters: Issues Relating To Leaves Of Absence
Small businesses are more likely to fail in the aftermath of devastation. How can you as an employee handle issues after a disaster?
Free Annual Reports