Question

Which of the following scenarios would not be considered part of the informal sector?

A.
Jane sells copies of illegally downloaded videos to her friends.
B.
Allen, a middle school student, is paid to mow lawns for his neighbors.
C.
Miguel pays cash for a stack of children’s books at a yard sale.
D.
Erin pays taxes on each paycheck she receives at work.

Answer 1

A.
Jane sells copies of illegally downloaded videos to her friends.

Answer 2

The correct answer is letter D. "Erin pays taxes on each paycheck she receives at work." This system is part of a formal sector, particularly the government, where citizens are required to pay their taxes in exchange for the services and developments that the government will partake in for the good of its people. Hope this helps. :)