Which of the Following Is NOT True of the Informal

question 206

Multiple Choice

Which of the following is NOT true of the informal economy in Middle/South America?

• A) Most people in the informal economy work as street vendors or recyclers.
• B) Those working in the informal economy have the same sick leave and retirement benefits of those working in the formal economy.
• C) Workers in the informal economy do not pay taxes on their economy.
• D) The informal economy can sometimes serve as an incubator for new businesses.

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Definitions:

Book Value

The net value of a company's assets as recorded on the balance sheet, minus its liabilities and the par value of any outstanding shares.

Opportunity Cost

Opportunity cost is the value of the next best alternative foregone as the result of making a decision.

Variable Costs

Payments that are contingent on the amount of production or the scope of sales, covering expenditures like materials and labor.

Variable Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor expenses.