Challenges and Impacts of the Informal Sector

The video explores South Africa's dual economy, focusing on the informal sector's role and impact. It highlights the sector's contribution to employment and the economy, despite lacking legal adherence and tax contributions. Challenges include illegal activities, pollution, and limited government involvement. The video also discusses the advantages and disadvantages of the informal sector, such as job creation and skill development versus institutional and infrastructure challenges. The video concludes with recommendations for further study.

What is a key characteristic of South Africa's informal sector?

• It has high tax contributions.

• It is heavily regulated by the government.

• It contributes significantly to the economy.

• It strictly follows legal standards.

How does the informal sector help reduce unemployment?

• By providing high-paying jobs.

• By offering government jobs.

• By offering jobs to those without university degrees.

• By requiring advanced skills.

Which of the following is a potential negative impact of the informal sector?

• It causes overcrowding and pollution in formal areas.

• It decreases the number of available jobs.

• It leads to increased government revenue.

• It reduces the number of entrepreneurs.

What is one of the main activities within the informal sector?

• Banking services

• Street vending

• Corporate management

• Real estate

What percentage of South Africa's population is employed in the informal sector?

• 9%

• 33%

• 15%

• 58%

What is a major institutional challenge faced by the informal sector?

• Excessive government funding

• High levels of technology use

• Lack of access to training and education

• Abundance of land and property

Which of the following is an infrastructure challenge for the informal sector?

• Too many working premises

• Overabundance of sanitation services

• Limited access to water and electricity

• Excessive storage facilities

What economic challenge does the informal sector face?

• Excessive capital for bulk purchases

• Lack of regular stable income

• Surplus of skilled labor

• High levels of investment

What is a potential advantage of the informal sector?

• It increases government control.

• It attracts tourists with locally produced goods.

• It decreases the number of entrepreneurs.

• It reduces the need for skill development.

What is recommended for further study on the informal sector?

• Relying solely on video tutorials

• Using a geography study guide

• Avoiding any additional resources

• Focusing only on formal sector studies