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Question : The "formal sector" refers to:

 

Option 1: The sector of the economy that includes self-employed individuals and small-scale businesses

Option 2: The sector that is regulated by the government

Option 3: The sector that focuses on manufacturing industries

Option 4: The sector that relies on foreign direct investment


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: The sector that is regulated by the government


Solution : The correct answer is (b) The sector that is regulated by the government.

The "formal sector" refers to the part of the economy that is officially recognized and regulated by the government. It typically includes businesses and organizations that operate within the legal framework, comply with labor laws, pay taxes, and provide formal employment. This sector is often characterized by larger enterprises, formal contracts, and regularized working conditions. It is contrasted with the "informal sector," which includes self-employed individuals, small-scale businesses, and activities that operate outside the formal regulatory framework.

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