Quiz- Q11-12 Which of the following is not one of the reason for the existence of informal sector in a developing country?

Q11. Which of the following is not one of the reason for the existence of informal sector in a developing country?
A. Tertiary economies in the formal sector are not developed well enough to absorb all the economies of the informal sector.
B. The quality of products and the quality of work in the informal sector are low.
C. Informal-sector workers and businesses cannot afford permanent business sites.
D. The government benefits from taxing informal-sector workers and their small businesses.

Answer: D

Exp: The informal sector or grey economy consists of workers who do not report their incomes or jobs to the government. The government cannot tax informal – sector workers because it does not know officially of their work activities, and the informal sector is not included in GDP calculations.

Q12. The Tropic of Cancer passes through India, dividing it into nearly two equal parts. Which of the following group of States does the Tropic of Cancer passes through?

A. Gujarat, Uttar Pradesh, Bihar, Sikkim
B. Gujarat, Madhya Pradesh, Chhattisgarh, Jharkhand
C. Chhattisgarh, Jharkhand, Manipur, Tripura
D. Jharkhand, Manipur, Tripura, Mizoram

Answer: B

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