The Informal Sector Can Be a Significant Drag on the Economies

question 52

Multiple Choice

The informal sector can be a significant drag on the economies of developing countries because the firms in the informal sector

• A)produce goods and services no one wants.
• B)sell their goods and services to citizens in other countries.
• C)do not pay taxes to the government.
• D)employ illegal immigrants from other countries.

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Definitions:

Social Blunders

Mistakes or awkward situations created in social contexts due to misunderstanding or inappropriate behavior.

Diffusion of Responsibility

A socio-psychological phenomenon where individuals are less likely to take action or feel a sense of personal responsibility in the presence of a large group.

Unconscious

Pertaining to the part of the mind that is not currently in focal awareness and holds thoughts, memories, and desires beyond immediate consciousness.

Prosocial Behaviour

Prosocial behavior includes actions intended to benefit others, characterized by helping, sharing, or cooperating.