Question

What is a major difference between formal and informal economic sectors?
A.
the dress code required of workers
B.
whether jobs deal with raw materials or finished products
C.
government regulation and oversight
D.
whether or not the nation has a comparative advantage

Please select the best answer from the choices provided.

A
B
C
D

Answer 1

C

The formal sector is subject to government regulation, taxation, and oversight (licenses, labor protections), while the informal sector operates outside those official regulations.