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

Which of the following is a characteristic of the informal sector in developing economies?
A. High capital intensity and formal contracts
B. Easy entry, small scale and labour intensity
C. High degree of regulation
D. Complete absence of employment
Answer: Option B
Solution (By JKSSB Mock Tests)
The informal sector is characterised by easy entry, small-scale operations, labour-intensive technology, lack of formal contracts and limited regulation.

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Practice More Economy Set 1 Questions

Question #1
An isoquant shows different combinations of two inputs that produce:
A. the same level of output
B. minimum cost
C. different levels of output
D. maximum profit

Correct Answer: Option A


Explanation:
An isoquant is a curve showing all combinations of two inputs that yield the same level of output.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'PM Formalization of Micro Food Processing Enterprises' scheme is associated with which sector?
A. IT services
B. Steel
C. Textiles
D. Food processing

Correct Answer: Option D


Explanation:
PM FME scheme supports micro food processing enterprises.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on fertilizers is:
A. 18%
B. 0%
C. 12%
D. 5%

Correct Answer: Option D


Explanation:
Fertilizers attract 5% GST.

This question belongs to: Economy GK Economy Set 1