Asked by Ejoke Akpovwa on Jun 26, 2024
Verified
What does it mean to be an informal economy?
A) The transactions avoid bureaucratic regulators.
B) The transactions occur digitally or outside of marketplaces.
C) The transactions are paid only in cash.
D) The transactions are onetime and do not involve a social network.
Informal Economy
A network of people producing and circulating marketable commodities, labor, and services that for various reasons escape government control.
Bureaucratic Regulators
Officials or agencies responsible for enforcing rules and regulations within governmental or organizational structures.
- Distinguish between formal and informal economies.
Verified Answer
NM
Nurul MizaniJun 30, 2024
Final Answer :
A
Explanation :
Being a part of the informal economy means that transactions occur without the involvement or oversight of regulatory bodies such as the government or other economic institutions. This can occur in a variety of ways, such as avoiding taxes or regulation by conducting transactions only in cash.
Learning Objectives
- Distinguish between formal and informal economies.