MC17 What is the impact of a large informal economy on the Indian economy?
A. Reduced government revenue
B. Reduced productivity
C. Reduced worker safety
D. All of the above
Answer:D
MC17 What is the impact of a large informal economy on the Indian economy?
A. Reduced government revenue B. Reduced productivity C. Reduced worker safety D. All of the above
Explanation: A large informal economy can have a range of impacts on the Indian economy. Because informal workers often do not pay taxes, it can reduce government revenue. Additionally, because informal workers may not receive the same level of training or support as formal workers, productivity can be lower. Finally, because the informal economy is not regulated in the same way as the formal economy, there may be issues with worker safety and exploitation.