Question

Differentiate between formal sector and informal sector

Answer 1

a formal sector are activities which are taxed and monitored by the government and the activities involved are included in the Gross Domestic Product(GDP).

Step-by-step explanation:

Answer 2

Wikipedia defines formal sector as activities which are taxed and monitored by the government and the activities involved are included in the Gross Domestic Product(GDP).

Step-by-step explanation:

In contrast to formal economy is the informal sector which is neither taxed nor included in the GDP and Gross national product (GNP) of a country.