Moderate

The term informal economy is used to describe_____________?

Correct answer: C. transactions outside the sphere of regular employment

  • A. work where no money changes hands
  • B. the activities of small businesses
  • C. transactions outside the sphere of regular employment
  • D. organizations with less rigid rules and procedures

Explanation

The informal economy includes paid or unpaid economic activities outside the regulated and formally recorded employment sector, such as unregistered work and street trading. It is broader than small businesses, since not every small business operates informally.

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