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 typically regulated, taxed, and monitored by the government; the informal sector operates outside such regulation and oversight.