Question

what is formal and informal sector . Explain​

Answer 1

Answer:

In contrast to the formal economy is the informal sector which is neither taxed nor included in the GDP and Gross national product (GNP) of a country. ... Conversely, informal or unorganized sectors are the ones where the employees or the workers do not have regular working hours and wages and are exempted from taxes.

Answer 2

Explanation:

The formal sector utilizes capital, unskilled labor and skilled labor in production, and produces a traded good which is both an investment and a consumption good. The informal sector uses capital and unskilled labor in production, and produces a non-traded consumption good.

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