Asked by Danielle Maidany on Jul 19, 2024
Verified
A network of people producing and circulating marketable commodities, labor, and services that for various reasons escape government control is called a(n) :
A) black market
B) informal economy
C) prestige economy
D) inconspicuous marketplace
Informal Economy
Economic activities that occur outside of formal regulatory frameworks, often lacking in legal protection and involving cash-based transactions.
Marketable Commodities
Goods or products that can be bought and sold easily in the market because they are in demand.
Government Control
Refers to the regulatory or directive actions taken by a government to manage its affairs and the behavior of its citizens.
- Identify the distinctions between formal and informal economies.
Verified Answer
ZK
Zybrea KnightJul 26, 2024
Final Answer :
B
Explanation :
An informal economy is a network of people producing and circulating marketable commodities, labor, and services that for various reasons escape government control. The black market may be a subset of the informal economy, but it specifically refers to illegal activities. The terms "prestige economy" and "inconspicuous marketplace" are not commonly used in economics literature to describe the informal economy.
Learning Objectives
- Identify the distinctions between formal and informal economies.