MC6 What is the impact of the informal economy on the Indian economy?
A. Reduced tax revenue
B. Reduced productivity
C. Lack of regulation
D. All of the above
Answer:D
MC6 What is the impact of the informal economy on the Indian economy?
A. Reduced tax revenue B. Reduced productivity C. Lack of regulation D. All of the above
Explanation: The informal economy in India, which includes unregistered businesses and workers, has a range of impacts on the overall economy. Because these businesses are not registered, they often do not pay taxes, which can reduce tax revenue for the government. 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.