Characteristics and Institutions of Developing Countries

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Characteristics and Institutions of Developing Countrieseconomics-mcqs › characteristics-and-institutions-of-developing-countries
Published
2 Jun 2019
Last updated
28 May 2026

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Which of the following groups are considered part of the informal sector?

Multiple choice question for Characteristics and Institutions of Developing Countries. Select an option, then review the explanation below.

Choose the correct answer

Explanation

The informal sector encompasses a wide range of participants including I - artisans, small-scale industrialists, and small shop owners; II - waste collectors, unlicensed taxi drivers, and repair workers; III - self-employed individuals; and IV - activities characterized by minimal capital, limited skills, and low barriers to entry. Therefore, all groups I, II, III, and IV are part of the informal sector.

Practice related questions from the same subject.

  1. 1.What characteristic sets a dual economy apart from other types of economies?
  2. 2.What defines a dual economy in a country?
  3. 3.What is the ratio between the population density of developing nations and the total population of developed nations?
  4. 4.In low-income nations, how much surplus does the typical farming household generate?
  5. 5.If the real income of Developing Island rises from $120,000 in 2005 to $160,000 in 2006, and its population grows from 1,000 to 1,100 during that time, approximately how much did the real income per person increase?

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