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Economics miscellaneous

  1. Paraellel economy emerges due to
    1. Tax Avoidance
    2. Tax Evasion
    3. Tax Compliance
    4. Tax Estimation
Correct Option: B

Parallel economy (black economy) indicates the functioning of an unsanctioned sector in the economy whose objectives run parallel with the social objectives. Major contributory factor to such an economy is black money which is any money that a person or an organization acquires as by a means that involves tax evasion. It is that income from illegal activities that is not reported to the government for tax purposes.



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