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).
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.
