Word: Black Economy
Definition:
The "black economy" refers to a part of the economy where transactions happen without being reported to the government. This means that people are making money but not paying taxes on it. It is also called the "informal economy" because it operates outside of the official rules and regulations.
Usage Instructions:
You can use "black economy" when discussing economic activities that are not visible or recorded by the government. It is often used in conversations about taxes, legality, and business practices.
Example Sentence:
"The black economy is growing in many countries, as more people are choosing to work for cash and avoid paying taxes."
Advanced Usage:
In advanced discussions, you might talk about the effects of the black economy on society, such as how it can lead to a lack of public services due to reduced tax income. You might also discuss how governments try to measure or combat the black economy.
Word Variants:
- Informal Economy: This is another term that means the same thing as "black economy." - Shadow Economy: This term is often used interchangeably with "black economy" and emphasizes that these activities are not visible to the government.
Different Meaning:
While "black economy" typically refers to illegal transactions, it can also refer to legal activities that are not reported for tax purposes, like freelance work paid in cash.
Synonyms:
- Informal economy - Underground economy - Shadow economy - Unreported economy
Idioms and Phrasal Verbs:
While there are no direct idioms or phrasal verbs specifically related to "black economy," you might encounter phrases that describe working off the books, such as "under the table," which means receiving payment in cash without it being reported.
Example of an Idiom:
"Working under the table is common in the black economy."
This means that people are getting paid in cash without any official record, which is typical of the black economy.