Explain the Difference Between the Formal and Informal Sectors of the Economy

question 37

Essay

Explain the difference between the formal and informal sectors of the economy within the Subsaharn Africa realm.Explain how these sectors relate to the provision of public services and infrastructure.

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Definitions:

Savings

Money that is set aside from income for future use, often stored in a bank or invested to generate returns.

Disposable Income

Households' spendable and savable funds following income tax deductions.

Autonomous C

Spending by consumers that does not depend on current income levels, such as basic needs or contractual obligations.

Disposable Income

The budget households have for saving and spending activities after income taxes deductions.