informal sector

Question 1

It refers to businesses or business activities that are
unregistered and thus, not covered by the country’s laws
and regulations.
● Its operations are not monitored by the government and
do not pay taxes.
● Its income is not measured in the Philippine GDP.

Answer 1

The Informal Sector

Question 2

Workers in this sector are “independent, self-employed,
small-scale producers and distributors of goods and
services.” - ILO
● “Informal” - the businesses are unrecognized because
they are usually do not have the permits to operate.
“Informal” - There is no transparency and accountability
in business operations.
● The sector’s existence in the Philippines was formally
recognized under the “Social Reform and Poverty
Alleviation Act (RA 8425).

Answer 2

The Informal Sector

Question 3

These are forms of informal labor which
may include unpaid and casual jobs.

Answer 3

Survival activities

Question 4

They are business activities or jobs that
entail intentionally evading the law and government
regulations. (E.g. Businesses evading tax obligations,
crime and drug related practices, counterfeiting, and
black market operations).

Answer 4

Illegal activities

Question 5

It refers to the unauthorized reproduction
of authentic or genuine items to defraud a consumer
that results to the proliferation of fake products in the
markets. (Items, currency, etc.)

Answer 5

Counterfeiting -

Question 6

• It refers to the unauthorized reproduction of
  authentic or genuine works or content such as visual
  media content and related software products.

Answer 6

Piracy

Question 7

It refers to
transactions generally entailing circumventing existing
laws and regulations. Sellers and producers are able to
cut costs by not paying taxes or government fees related
to registrations. (Illegal drugs, unlicensed firearms, etc.)

Answer 7

Black Market (Underground economy)