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.
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).
Investment dictionary. Academic. 2012.
Look at other dictionaries:
black economy — ➔ economy1 … Financial and business terms
black economy — ► NOUN ▪ the part of a country s economic activity which is not recorded or taxed by its government … English terms dictionary
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black economy — noun a hidden sector of the economy where private cash transactions go unreported no one knows how large the black economy really is • Hypernyms: ↑sector • Part Holonyms: ↑economy, ↑economic system * * * black economy noun Economic activity… … Useful english dictionary
black economy — That portion of employment within the market economy that is not fully covered by official statistics , due to some degree of under reporting which is assumed to be connected with tax evasion. Unfortunately, economic statistics are imperfect, so… … Dictionary of sociology
black economy — N SING The black economy consists of the buying, selling, and producing of goods or services that goes on without the government being informed, so that people can avoid paying tax on them. [BRIT] ...an attempt to clamp down on the black economy … English dictionary
black economy — Economic activity that is undisclosed, as to disclose it would render the earnings involved liable to taxation or even cause those engaged to be imprisoned (if they are claiming state benefits and have lied about their earnings). The black… … Big dictionary of business and management
black economy — the sum of goods and services provided without tax or official cognizance Depressingly black for the tax collector, perhaps, but not normally so for those who pay for governmental voracity and profligacy: All public spirited citizens… … How not to say what you mean: A dictionary of euphemisms
black economy — black e conomy n [singular] business activity that takes place secretly, especially in order to avoid tax →↑black market … Dictionary of contemporary English
black economy — /blæk ɪ kɒnəmi/ noun goods and services which are paid for in cash, and therefore not declared for tax. Also called hidden economy, parallel economy, shadow economy … Dictionary of banking and finance