5 Questions
Why are those in the informal sector not taxed in their income and real properties?
They fail to register with the government.
How do those in the informal sector limit their bargaining rights?
By not being supervised.
What term do economists use to describe the sector of those who are not supervised by the state?
Shadow economy
What consequences do those in the informal sector face for disregarding government regulations?
They are not protected.
What is a key reason why those in the informal sector disregard government regulations?
Lack of registration and licenses.
Test your knowledge on the characteristics and implications of the informal sector in economics. Explore the reasons why businesses in this sector avoid government regulations and taxes, and the impact of their operations on workers and customers.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
