ECONOMICS
MARKETS AND PRICES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The term for when business is good and profitable.
|
|
|
The term for when business is losing money.
|
|
|
When goods and services are exchanged illegally.
|
|
|
None of the above
|
Detailed explanation-1: -What Is a Black Market? A black market is an economic activity that takes place outside government-sanctioned channels. Illegal market transactions usually occur “under the table” to let participants avoid government price controls or taxes.
Detailed explanation-2: -Examples of goods traded in the black market are weapons, illegal drugs, exotic and protected species of animals, and human organs needed for transplant surgeries.
Detailed explanation-3: -This illegal trade takes place in secret, or in the dark, hence the name “black market.” Because black-market trade occurs “off the books, ” so to speak, it represents a whole sector of a country’s economy that cannot accurately be measured.
Detailed explanation-4: -Black markets typically arise when the government attempts to control prices or imposes an excessively high tax burden on transactions. For example, when a government imposes price controls on fuel, individuals willing to pay more than the fixed rate will form the demand side of a black market.