5
QuizMultiple Choice

Global Economic Sectors and Systems

Question 5 • TX-World Geography Studies B-CR

Which of the following scenarios would not be considered part of the informal sector?

Answer
A
Jane sells copies of illegally downloaded videos to her friends.
B
Allen, a middle school student, is paid to mow lawns for his neighbors.
C
Miguel pays cash for a stack of children’s books at a yard sale.
D
Erin pays taxes on each paycheck she receives at work.

Explanation

The informal sector includes economic activity that is typically unregistered or not reported to the government, such as casual lawn mowing or selling goods outside formal business channels. Erin’s work is part of the formal sector because she pays taxes on her paycheck. Therefore, the best answer is D, Erin pays taxes on each paycheck she receives at work.

AI-written and checked against the verified answer.

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