The Existence of the Informal Sector in Many Less Developed

question 78

True/False

The existence of the informal sector in many less developed countries is evidence of the irrational behavior of less educated people in poor countries. Is this true or false? Explain your answer.

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Definitions:

Hadley v. Baxendale

A foundational English contract law case that established the rule regarding the recoverability of damages for breach of contract based on foreseeability.

Foreseeable Damages

Foreseeable damages are those losses that a party could reasonably anticipate at the time of contract formation, resulting from a breach of the contract.

Penalty

refers to a punishment imposed for breaking a law, rule, or contract.

Breach

An act of breaking or failing to observe a law, agreement, or code of conduct.