Explain the Differences Between the Formal and Informal Economy

question 42

Essay

Explain the differences between the formal and informal economy.Apply a conflict-oriented perspective to explain why the informal economy disproportionately employs low-income, female, and immigrant workers.

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Definitions:

Output Effect

The change in total product output that results from an alteration in economic variables such as demand, supply, or investment.

Price Of A Resource

The cost associated with acquiring a resource necessary for production, such as labor, raw materials, or capital.

Marginal Revenue Product Schedule

This schedule outlines how the marginal revenue product (the additional revenue generated by employing one more unit of a resource) changes as the quantity of the resource employed increases, holding other factors constant.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.