CH 5: Informal Sector

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What does the informal sector in South Africa encompass?

Technologically advanced businesses

Unregistered economic activities not monitored by the government (correct)

Small-scale operations with high capital investment

Registered economic activities monitored by the government

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

High capital investment

Access to health insurance benefits

Low technological use (correct)

Presence of formal credit facilities

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

Accounting

Computer programming

Engineering

Gardening (correct)

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

Self-employment without formal registration Signup and view all the answers

Why is the informal sector considered vulnerable?

Lack of health insurance benefits Signup and view all the answers

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

Street vending Signup and view all the answers

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

Family-owned operations Signup and view all the answers

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

'Tax evasion' is common practice Signup and view all the answers

What contributes to the informality of the informal sector?

'Absence of formal registration' Signup and view all the answers

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

Low capital investment requirements Signup and view all the answers

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

High unemployment rates in the formal sector Signup and view all the answers

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

Inability to find legal employment Signup and view all the answers

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

Exclusion from formal economic spaces Signup and view all the answers

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

Contributing significantly to the GDP and economic diversity Signup and view all the answers

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

Facilitating access to credit and banking services Signup and view all the answers

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

Limits access to necessary infrastructure for trading Signup and view all the answers

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

'Formal jobs require certain educational certifications' Signup and view all the answers

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

'Create market instability and unreliable income' Signup and view all the answers

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

'Formal recognition and support systems' Signup and view all the answers

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' Signup and view all the answers

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

Street vending Signup and view all the answers

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

Low technological use Signup and view all the answers

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

Lack of formal registration Signup and view all the answers

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

Lack of formal employment contracts Signup and view all the answers

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

Formal registration requirements Signup and view all the answers

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

Casual labor Signup and view all the answers

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

Absence of formal registration Signup and view all the answers

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 Signup and view all the answers

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

Exclusion from formal economic spaces Signup and view all the answers

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

It compels them to undertake any available income-generating activity. Signup and view all the answers

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

Due to limited access to legal employment Signup and view all the answers

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

Encourages entrepreneurial skills and self-reliance among South Africans. Signup and view all the answers

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

Formal recognition and support systems Signup and view all the answers

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

Limited access to proper trading facilities and infrastructure Signup and view all the answers

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

Challenges securing formal employment opportunities Signup and view all the answers

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

Contributes to inadequate trading facilities and infrastructure access Signup and view all the answers

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 Signup and view all the answers

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

Informal sector Signup and view all the answers

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

Low capital investment Signup and view all the answers

Which feature is common among workers in the informal sector?

Social security benefits Signup and view all the answers

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

Tax evasion Signup and view all the answers

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

Casual labor Signup and view all the answers

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

Lack of formal registration Signup and view all the answers

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

Minimal use of technology Signup and view all the answers

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

'Blacklisted' from credit facilities Signup and view all the answers

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

'Blacklisted' from social security Signup and view all the answers

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

Painting and cleaning tasks Signup and view all the answers

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

Formal sector job losses due to factors like mechanization Signup and view all the answers

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

High competition for formal jobs Signup and view all the answers

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

Legal barriers to secure formal employment Signup and view all the answers

How does environmental exposure affect informal businesses in South Africa?

It exposes traders and goods to weather conditions Signup and view all the answers

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

Lead to an unreliable income Signup and view all the answers

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

Facilitating access to credit and banking services Signup and view all the answers

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 Signup and view all the answers

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

It leads to exclusion from formal economic spaces and harassment Signup and view all the answers

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' Signup and view all the answers

'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' Signup and view all the answers

CH 5: Informal Sector

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Questions and Answers

What does the informal sector in South Africa encompass?

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

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

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

Why is the informal sector considered vulnerable?

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

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

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

What contributes to the informality of the informal sector?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Which feature is common among workers in the informal sector?

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

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

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

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

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

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

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

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

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

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

How does environmental exposure affect informal businesses in South Africa?

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

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

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

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

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

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

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