ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Informal economy
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Non-basic industry
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Basic industry
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Formal economy
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Detailed explanation-1: -A formal economy is the legal economy of a nation-state, as measured by a government’s gross national product (GNP), or the market value of all products and services produced by a country’s companies in a given year.
Detailed explanation-2: -In this sector all jobs with specific working hours and regular wages and the worker’s job is assured. It is a licensed organization and is liable to pay taxes. Banks and other corporations comes under formal sectors. Rag pickers, moneylenders, brokers are considered as a part of an informal economy.
Detailed explanation-3: -Term: Formal economy. Definition: As contrasted with the informal economy, the part of an economy of which the government is fully aware and that is regulated by government authorities, particularly in the areas of contract and company law, taxation and labour law.
Detailed explanation-4: -Formal SectorInformal SectorAll public and private sectorAll establishments whichestablishments whichemploy less than 10 workersemploy 10 or more hiredcomprise the informalworkers comprise the formalsector. sector.
Detailed explanation-5: -The informal economy consists of activities that have market value but are not formally registered. The informal economy embraces professions as diverse as minibus drivers in Africa, the market stands in Latin America, and the hawkers found at traffic lights all over the world.