Informal Sector

Description: Informal Sector Quiz
Number of Questions: 15
Created by:
Tags: indian economics employment and labor market informal sector
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What is the informal sector?

  1. The sector of the economy that is not regulated by the government.

  2. The sector of the economy that is not taxed by the government.

  3. The sector of the economy that is not included in the national accounts.

  4. All of the above.


Correct Option: D
Explanation:

The informal sector is the sector of the economy that is not regulated, taxed, or included in the national accounts.

What are some of the characteristics of the informal sector?

  1. It is typically small-scale and family-owned.

  2. It is often unregistered and unregulated.

  3. It is often characterized by low productivity and poor working conditions.

  4. All of the above.


Correct Option: D
Explanation:

The informal sector is typically characterized by small-scale, family-owned businesses that are often unregistered and unregulated. It is also often characterized by low productivity and poor working conditions.

What are some of the challenges faced by the informal sector?

  1. Access to finance.

  2. Access to markets.

  3. Access to technology.

  4. All of the above.


Correct Option: D
Explanation:

The informal sector faces a number of challenges, including access to finance, access to markets, and access to technology.

What are some of the benefits of the informal sector?

  1. It provides employment for a large number of people.

  2. It contributes to economic growth.

  3. It provides goods and services that are not available in the formal sector.

  4. All of the above.


Correct Option: D
Explanation:

The informal sector provides employment for a large number of people, contributes to economic growth, and provides goods and services that are not available in the formal sector.

What are some of the policies that can be used to support the informal sector?

  1. Providing access to finance.

  2. Providing access to markets.

  3. Providing access to technology.

  4. All of the above.


Correct Option: D
Explanation:

Policies that can be used to support the informal sector include providing access to finance, providing access to markets, and providing access to technology.

What is the role of the informal sector in the Indian economy?

  1. It is a major source of employment.

  2. It contributes to economic growth.

  3. It provides goods and services that are not available in the formal sector.

  4. All of the above.


Correct Option: D
Explanation:

The informal sector is a major source of employment, contributes to economic growth, and provides goods and services that are not available in the formal sector.

What are some of the challenges faced by the informal sector in India?

  1. Access to finance.

  2. Access to markets.

  3. Access to technology.

  4. All of the above.


Correct Option: D
Explanation:

The informal sector in India faces a number of challenges, including access to finance, access to markets, and access to technology.

What are some of the policies that can be used to support the informal sector in India?

  1. Providing access to finance.

  2. Providing access to markets.

  3. Providing access to technology.

  4. All of the above.


Correct Option: D
Explanation:

Policies that can be used to support the informal sector in India include providing access to finance, providing access to markets, and providing access to technology.

What is the future of the informal sector in India?

  1. It will continue to grow.

  2. It will decline.

  3. It will remain the same size.

  4. It is difficult to say.


Correct Option: D
Explanation:

The future of the informal sector in India is difficult to predict. It is possible that it will continue to grow, decline, or remain the same size.

What are some of the key issues that need to be addressed in order to improve the informal sector in India?

  1. Access to finance.

  2. Access to markets.

  3. Access to technology.

  4. All of the above.


Correct Option: D
Explanation:

The key issues that need to be addressed in order to improve the informal sector in India include access to finance, access to markets, and access to technology.

What is the role of the government in supporting the informal sector in India?

  1. Providing access to finance.

  2. Providing access to markets.

  3. Providing access to technology.

  4. All of the above.


Correct Option: D
Explanation:

The government can play a role in supporting the informal sector in India by providing access to finance, providing access to markets, and providing access to technology.

What is the role of the private sector in supporting the informal sector in India?

  1. Providing access to finance.

  2. Providing access to markets.

  3. Providing access to technology.

  4. All of the above.


Correct Option: D
Explanation:

The private sector can play a role in supporting the informal sector in India by providing access to finance, providing access to markets, and providing access to technology.

What is the role of the civil society in supporting the informal sector in India?

  1. Providing access to finance.

  2. Providing access to markets.

  3. Providing access to technology.

  4. All of the above.


Correct Option: D
Explanation:

The civil society can play a role in supporting the informal sector in India by providing access to finance, providing access to markets, and providing access to technology.

What are some of the success stories of the informal sector in India?

  1. The rise of the microfinance industry.

  2. The growth of the self-employed sector.

  3. The emergence of new technologies that have helped to improve the productivity of informal sector workers.

  4. All of the above.


Correct Option: D
Explanation:

The informal sector in India has a number of success stories, including the rise of the microfinance industry, the growth of the self-employed sector, and the emergence of new technologies that have helped to improve the productivity of informal sector workers.

What are some of the challenges that still need to be addressed in order to improve the informal sector in India?

  1. Access to finance.

  2. Access to markets.

  3. Access to technology.

  4. All of the above.


Correct Option: D
Explanation:

The informal sector in India still faces a number of challenges, including access to finance, access to markets, and access to technology.

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