What is an example of a black market?

A black market may arise to make illegal goods and services available or to make expensive items available for less money (such as pirated music or software). As an example of a black economy, a construction worker who is paid under the table will neither have taxes withheld, nor will the employer pay taxes on his earnings.

What are black markets?

Black markets, also called shadow markets, come about when people want to exchange goods or services that are prohibited by governments. Black markets skew economic data, as transactions are unrecorded. Black markets also arise when people don't want to pay taxes on the transaction for legal or illegal goods or services.

What goods are traded in the black market?

The black market often sets a price for foreign exchange that is several times the official one. 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.