Which sector is sometimes referred to as the black market?

The informal economy is sometimes referred to as the black market because it encompasses economic activities that are not regulated by the government and thus operate outside the formal legal frameworks. This can include unregistered businesses, street vendors, and the buying and selling of goods or services without the necessary licenses or taxes being paid. Activities in the informal economy often evade taxation and can provide goods and services in a way that does not comply with safety or employment regulations.

This sector is characterized by its lack of official recognition, leading to difficulties in accurately measuring its contribution to the overall economy. The informal nature of these transactions also means they can sometimes involve illegal goods or services, contributing to the association with the term "black market."

The formal economy, on the other hand, includes all economic activities that are officially recognized and regulated, while the retail sector is a specific segment within the formal economy focused on selling goods to consumers. The public sector involves government services and operations, which are also part of the regulated economy. Thus, the informal economy stands out as the sector that encapsulates the concept of the black market due to its unregulated and often clandestine nature.