Which of the following is a characteristic of the informal sector? MCQ with Answer and Explanation

Which of the following is a characteristic of the informal sector?
A. High degree of formal contracts and social security
B. Easy entry, small scale and lack of formal regulation
C. Complete absence of employment generation
D. High capital intensity and advanced technology
Answer: Option B
Solution (By JKSSB Mock Tests)
The informal sector is marked by ease of entry, small-scale operations, labour intensity, lack of formal contracts and limited access to social security.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' is a:
A. indirect tax
B. capital gains tax
C. direct tax
D. wealth tax

Correct Answer: Option A


Explanation:
GST is an indirect tax on goods and services.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Advance Pricing Agreement' is related to:
A. transfer pricing
B. indirect taxes
C. customs valuation
D. income from salary

Correct Answer: Option A


Explanation:
Advance Pricing Agreements relate to transfer pricing arrangements.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on actionable claims such as lottery, betting and gambling is:
A. 12%
B. 5%
C. 28%
D. 18%

Correct Answer: Option C


Explanation:
Actionable claims like lottery, betting and gambling attract 28% GST.

This question belongs to: Economy GK Economy Set 1