Moderate

The following statements are true about informal sector except ?

Correct answer: C. Production is capital intensive

  • A. Uses no mechanical power
  • B. May be enterprises with less than 10 workers
  • C. Production is capital intensive
  • D. Uses family workers

Explanation

Informal-sector enterprises generally use simple, labor-intensive methods, family workers and few employees, often fewer than 10. Capital-intensive production is a feature of the formal or modern sector, not the informal sector.

Last updated

About Macroeconomics

The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.

Practise Macroeconomics

1,462 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Exams that ask Economics questions like this

Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

Related questions