有關black,hidden or informal economy
1.how it functions(who is involvedin the economy)?
2.how much money is estimated to be kept from the tax authorities?
3.what is the product/service?
4.what is the penalty for the people participating in the black econom y if the authorities catch them?
- 1 decade agoFavorite Answer
1. The informal economy exhibit a general economy structure, except it wasn't control or regulate by the proper authority (tax authorities and other), hence it is considered partially or completely illegal. Due to its illegal nature, the value and economy liabilities is uncertain and inaccurate.
As far as who is involved in Informal economy is just like "all other" economy. (each role of production, logistic, consumer has to take place, except the economy value is estimated without proper measure or definition in case of full illegal process).
the money is often "estimated" on the demand and production based, no actual figure is present due to no authorities available.
the product and service... well, as far as I know, drug production, illegal laboring (several laborings are considered illegal) all part of informal economy. some of the businesses are legal, however, if without authorities control and regulation and proper taxation, the economy gain from such business are still deem informal.
The penalty can vary under the law of each independent state. However, due to export and import nature, some of penalty for informal trades can be severe. (the penalty method varies from fines, captivity or even capital punishment.)Source(s): self.