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STatiana [176]
2 years ago
11

1. What are some of the advantages of the informal economy? 2. What are some of the disadvantages of the informal economy?

Social Studies
1 answer:
Valentin [98]2 years ago
7 0
Some pros and cons of the informal economy:

1.) What are the advantages of the informal economy? (Pros)
1.1) Tax free remuneration and paid immediately in cash
1.2) Entrepreneurial spirit and having more control over your own life due to independence
1.3)Occupational skill building
1.4) Employment arrangements are relaxed and comfortable
1.5) It is the best solution to a temporary problem

2.) What are the disadvantages of an informal economy? (Cons)
2.1) There are no benefits for employees
2.2) The security of the economy is not guaranteed / lacking
2.3) There is a very limited credit establishment opportunity
2.4) People tend to slack in their work ethic
2.5) Not reporting income carries with it a lot of risk and penalties


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