What is black marketing? What steps should be taken to control black marketing?(4 marks)

1. Don’t bring your kids to Chuck E. Cheese
2. Legalize black marketing then regulate trade from there
3. Equip systems with strong user authentication passwords
4. Make then pointless.

Most black markets exist because of either taxation makes legitimate goods too expensive, or the trade being illegal.
The trick is setting the taxation high enough that it raises decent income, but low enough so that it’s not worth using a black market, for most people. Black markets tend to be inefficient, so can be pushed out even compared to legitimate markets with fairly high taxes. With illegal goods, it’s a little trickier, but one option is to legalise and tax them - as some countries are currently experimenting with drugs. It can destroy the related crime and organised gangs in a stroke, and be overall safer for the population, as you can institute much more safety regulation. However, many countries use both taxes and criminality as a way of influencing behaviour and reinforcing a moral code, which can make this difficult - few politicians want to be seen to support morally dubious products or services.