Ask Question
BusinessBusiness
5 October, 08:45

Discuss two reasons why economies have an informal sector.

+3
Answers (1)
  1. 5 October, 12:43
    0
    Answer: Due to labor absorption and the cost of a regulatory barrier.

    Explanation:

    Thus, labor absorption occurs, especially in areas with high population and urbanization rates. The reason why the economy also has an informal sector is the fact that there are too many costs and a regulatory barrier to entry into the formal economy, often motivated by corruption. The informal sector is needed in order not to weaken the institutions, which entails a weakening of the economy.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Discuss two reasons why economies have an informal sector. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal control over the revenue cycle? a.
Answers (1)
If interest rates are at the zero lower bound:A. the effectiveness of monetary policy increases. B. monetary policy is not very effective. C. automatic stabilizers don't work. D. monetary policy is more effective than fiscal policy
Answers (1)
When the Campbell Soup Co. introduced its new Slow Kettle Style Soups, its advertising touted restaurant-quality soup with authentic ingredients and unique flavors available at the grocery store.
Answers (1)
Sparrow Products Industries stock is currently selling for $73. It just paid its annual dividend of $1 after reporting an ROE of 15%. The firm pays out 50% of its earnings as dividends. What is the expected return of this stock?
Answers (1)
Caroline Perfumes is a premium, exotic women's fragrance company. The manufacturers of Caroline Perfumes want to establish its products as specialty products.
Answers (1)
New Questions in Business
Which of the following would be subtracted from net income when determining cash flows from operating activities under the indirect method? An increase in accounts payable. Depreciation expense. A decrease in prepaid insurance.
Answers (1)
Which entry would record the payment of a utility bill? A. Debit Utilities Expense; credit Cash B. Debit Cash; credit Utilities Expense C. Debit Utilities Expense; credit Accounts Payable D. Debit Accounts Receivable; credit Utilities Expense
Answers (1)
Waymire Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years' experience, Waymire estimates that 3% of units sold each period will require repair at an average cost of $100 per unit.
Answers (1)
In the film industry, what is the term used to describe all the activities and actions taken in order to create a movie? a. acquisition b. distribution c. exhibition d. production
Answers (1)
Taxpayers who recover all or part of an item that they deducted or took a credit for in a prior year, must report the same amount as
Answers (1)
Home » Business » Discuss two reasons why economies have an informal sector.
Sign Up Forgot Password?