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Question : The "informal sector" in India is characterized by:

Option 1: Strict adherence to labor laws and regulations

Option 2: High productivity and efficiency

Option 3: Lack of social security benefits and job stability

Option 4: Exclusively consisting of self-employed individuals


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Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Lack of social security benefits and job stability


Solution : The correct answer is c) Lack of social security benefits and job stability.

The informal sector in India refers to economic activities that are not regulated by labor laws and lack social security benefits. Workers in the informal sector typically do not have formal employment contracts, job stability, or access to benefits such as health insurance, pension, or paid leave. They often work in small-scale enterprises, self-employment, or as casual laborers. The informal sector is characterized by its informality and the absence of legal and social protections typically associated with formal employment.

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