Question

Informal labor is part of every country's economy.

Answer 1

Answer:

The choices provided are:

True or False.

The answer is True.

Explanation:

The informal economy refers to the various set of economic activities, jobs, and workers that are not regulated by the government. Therefore informal labor refers to people who are self-employed, and usually in small unregistered enterprises. Informal workers also do no pay taxes on their earnings. For example, when someone makes lemonade at home, and sells outside an office building.

Therefore we can conclude that informal labor is part of every country's economy. Their activities may not be included in the calculation of GDP but it is well known to the Government that informal labor exists. The Government knows that people are engaged in one small business or the other as a means of making a living and also a way to avoid committing crimes to make ends meet.