Question : The "formal sector" refers to:
Option 1: The sector of the economy that includes self-employed individuals and small-scale businesses
Option 2: The sector that is regulated by the government
Option 3: The sector that focuses on manufacturing industries
Option 4: The sector that relies on foreign direct investment
Correct Answer: The sector that is regulated by the government
Solution : The correct answer is (b) The sector that is regulated by the government.
The "formal sector" refers to the part of the economy that is officially recognized and regulated by the government. It typically includes businesses and organizations that operate within the legal framework, comply with labor laws, pay taxes, and provide formal employment. This sector is often characterized by larger enterprises, formal contracts, and regularized working conditions. It is contrasted with the "informal sector," which includes self-employed individuals, small-scale businesses, and activities that operate outside the formal regulatory framework.
Question : The "informal sector" refers to:
Question : In the context of human capital, the term "knowledge economy" refers to an economy that:
Option 1: Relies primarily on agriculture
Option 2: Focuses on manufacturing industries
Option 3: Emphasizes the production and use of knowledge and information
Option 4: Depends on natural resources extraction
Question : For commercial bank lending, the 'Priority Sector' denotes:
Option 1: self-employed
Option 2: agriculture and small-scale industries
Option 3: small industrialists
Option 4: small farmers
Question : The concept of "labor force" includes:
Option 1: Employed individuals ony
Option 2: Unemployed individuals only
Option 3: Employed and unemployed individuals
Option 4: Working-age population
Question : What was the main objective of industrial sector reforms in the 1991 economic policy?
Option 1: Promoting export-oriented industries
Option 2: Nationalizing key industries
Option 3: Encouraging small-scale industries
Option 4: Protecting domestic industries from foreign competition
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