The answer is a) It refers to economic activity that is hidden for tax evasion or administrative control reasons.
The informal economy is a term used to describe economic activity that is not registered with the government or taxed. This can include activities such as street vending, domestic work, and small-scale manufacturing.
The informal economy is often hidden for tax evasion or administrative control reasons. This means that the government is not able to collect taxes on these activities, and it also means that workers in the informal economy do not have access to benefits such as social security or health insurance.
The informal economy is a significant part of the economy in many countries, including Peru. In Peru, the informal economy accounts for about 61% of the GDP.
Here are some other characteristics of the informal economy:
The informal economy is a complex phenomenon, and there is no single solution to the challenges it poses. However, governments can take steps to reduce the size of the informal economy by simplifying the tax code, providing more benefits to informal workers, and improving access to credit for informal businesses.
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