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CH 5: Informal Sector

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RaptOganesson
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57 Questions

What does the informal sector in South Africa encompass?

Unregistered economic activities not monitored by the government

Which of the following is a characteristic of informal sector employment?

Low technological use

What is a common form of casual labor in the informal sector?

Gardening

What is a key feature of workers in the informal sector?

Self-employment without formal registration

Why is the informal sector considered vulnerable?

Lack of health insurance benefits

What is a common activity in the informal sector related to selling goods?

Street vending

What is a distinguishing characteristic of businesses in the informal sector?

Family-owned operations

Which of the following is true about tax payments in the informal sector?

'Tax evasion' is common practice

What contributes to the informality of the informal sector?

'Absence of formal registration'

What aspect characterizes businesses in the informal sector regarding capital investment?

Low capital investment requirements

What is one of the factors contributing to the prevalence of informal sector employment in South Africa?

High unemployment rates in the formal sector

Why do immigrants in South Africa sometimes turn to the informal sector for employment?

Inability to find legal employment

What is a major challenge faced by the informal sector in South Africa due to lack of legal recognition?

Exclusion from formal economic spaces

What role does the informal sector play in South Africa's economy according to the text?

Contributing significantly to the GDP and economic diversity

Which strategy is suggested in the text to strengthen the informal sector in South Africa?

Facilitating access to credit and banking services

What impact does lack of infrastructure have on the informal sector in South Africa?

Limits access to necessary infrastructure for trading

Why do individuals without formal qualifications struggle to secure formal employment in South Africa?

'Formal jobs require certain educational certifications'

How do fluctuations in demand impact the informal sector in South Africa?

'Create market instability and unreliable income'

What could enhance the livelihoods of waste pickers in Cape Town's Informal Recycling Sector according to the text?

'Formal recognition and support systems'

How does the informal sector provide goods and services differently from the formal sector in South Africa?

'Offers goods and services at accessible locations and prices'

What is a common form of work found in the informal sector in South Africa?

Street vending

Which of the following is a distinguishing characteristic of businesses in the informal sector regarding technology use?

Low technological use

What contributes to the informality of the informal sector employment in South Africa?

Lack of formal registration

Why do workers in the informal sector often face challenges related to social security benefits?

Lack of formal employment contracts

Which of the following is a significant difference between formal and informal sector businesses in South Africa?

Formal registration requirements

What type of labor is common in the informal sector and involves tasks like gardening, painting, and cleaning?

Casual labor

Why do businesses in the informal sector typically lack access to formal credit facilities?

Absence of formal registration

What is one of the factors leading individuals to join the informal sector in South Africa?

Difficulty securing formal employment due to lack of qualifications

Which challenge does the informal sector in South Africa face due to a lack of legal recognition?

Exclusion from formal economic spaces

How does poverty influence individuals' involvement in the informal sector in South Africa?

It compels them to undertake any available income-generating activity.

Why do immigrants in South Africa sometimes turn to the informal sector for employment?

Due to limited access to legal employment

What role does entrepreneurship play in the informal sector in South Africa?

Encourages entrepreneurial skills and self-reliance among South Africans.

How can the livelihoods of waste pickers in Cape Town's Informal Recycling Sector be enhanced?

Formal recognition and support systems

What contributes to individuals facing challenges like lack of infrastructure in South Africa's informal sector?

Limited access to proper trading facilities and infrastructure

What is a common reason individuals without formal qualifications struggle in South Africa's formal job market?

Challenges securing formal employment opportunities

How does lack of infrastructure impact businesses in South Africa's informal sector?

Contributes to inadequate trading facilities and infrastructure access

What effect does high unemployment rates have on individuals' transition to the informal sector in South Africa?

Pushes individuals into the informal sector due to job losses in the formal sector

What term describes economic activities in South Africa that are unregistered and not monitored by the government?

Informal sector

Which characteristic is typical of businesses in the informal sector regarding capital investment?

Low capital investment

Which feature is common among workers in the informal sector?

Social security benefits

Why do participants in the informal sector typically not pay income tax?

Tax evasion

What type of labor is commonly found in the informal sector and involves tasks like gardening, painting, and cleaning?

Casual labor

Which factor contributes to workers in the informal sector often facing challenges related to social security benefits?

Lack of formal registration

How do businesses in the informal sector tend to differ from formal businesses regarding technology use?

Minimal use of technology

What distinguishes businesses in the informal sector regarding access to formal credit facilities?

'Blacklisted' from credit facilities

Why are workers in the informal sector considered vulnerable according to the text?

'Blacklisted' from social security

What is a common form of casual labor in the informal sector according to the text?

Painting and cleaning tasks

What contributes to the high prevalence of informal sector employment in South Africa?

Formal sector job losses due to factors like mechanization

Why do individuals without formal qualifications struggle to secure formal employment in South Africa?

High competition for formal jobs

What common challenge do immigrants in South Africa face, leading them to turn to the informal sector?

Legal barriers to secure formal employment

How does environmental exposure affect informal businesses in South Africa?

It exposes traders and goods to weather conditions

What impact do fluctuations in demand have on the informal sector in South Africa?

Lead to an unreliable income

Which of the following is a strategy for strengthening the informal sector in South Africa?

Facilitating access to credit and banking services

What role does the informal sector play in South Africa's economy, particularly for lower-income consumers?

Offering goods and services at accessible locations and prices

How does lack of legal recognition impact informal businesses in South Africa?

It leads to exclusion from formal economic spaces and harassment

What contributes to individuals turning to the informal sector for income generation in South Africa?

'The need to survive compels individuals to undertake any available form of income-generating activity'

'Policy support and legalization' is suggested as a strategy for strengthening the informal sector. What would this involve?

'Implementing policies that recognize and support informal businesses'

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