Differentiate between formal sector and informal sector

Question

Geography

Caylee Pace

29 November, 15:48

Differentiate between formal sector and informal sector

+5

Answers (2)

Know the Answer?

Grace Hanna · Answer 1

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.

Aidan · Answer 2

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).