Differentiate between formal sector and informal sector

Question

Lilah

Geography

8 November, 20:04

Differentiate between formal sector and informal sector

+1

Answers (2)

Know the Answer?

Devyn Garza · Answer 1

a formal sector are activities which are taxed and monitored by the government and the activities involved are included in the Gross Domestic Product (GDP).

Jaidyn Banks · Answer 2

Wikipedia defines formal sector as activities which are taxed and monitored by the government and the activities involved are included in the Gross Domestic Product (GDP).

Explanation:

In contrast to formal economy is the informal sector which is neither taxed nor included in the GDP and Gross national product (GNP) of a country.