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

Solution : The correct answer is (a) The sector of the economy that includes self-employed individuals and small-scale businesses.

The informal sector, also known as the informal economy or the unorganized sector, consists of economic activities that are not regulated or protected by formal labor laws, social security, or other government regulations. It includes self-employed individuals, street vendors, small-scale businesses, casual laborers, and other similar economic activities that operate outside the formal legal framework.

The informal sector is characterized by its flexibility, low barriers to entry, and often limited access to formal financial services and social protection. Workers in the informal sector may have irregular or unstable employment, lack legal protections, and operate in less structured and regulated environments compared to the formal sector.