Q4 Quiz #2 Flashcards
Purpose of the services sector
As the name implies, the sector that produces services for the consumer’s economic wants.
Another name for the services sector
tertiary sector, because it complements the role of agricultural and industrial sectors.
What are the two major types of services the service sector covers?
market services and nonmarket services
5 components of the services sector
transportation, storage & communication
financial intermediation
real estate, renting, and other business activities
other services: education, health, etc.
public administration and defense; compulsory social security
TaRoMVPaHG (▸ Trade and Repair of Motor Vehicles, Personal, and Household
Goods)
strengths of the services sector
-> Business process outsourcing has been a major success story.
-> Emerging opportunities: Many ways to work, physical or online
-> services export: OFWs are sending money they earn back home which contributed significantly to the country’s GDP
-> tourism: great potential for industries
challenges the service sector faces
lack of capacity building trainings
lack of access to financing
lack of level playing field
overdependent on OFWs
a lot of foreign workers in the philippines
what exactly is the informal sector
employment/business that are not recorded, and not taxed, and aren’t illegal
other names of the informal sector
black market, shadow economy, underground economy, off-the-book economy
5 economic activies that are informal
- transporation such as jeepneys, tricycles
- financial services by unregistered lenders
- selling of drugs, humans, and operation of illegal gambling
- manufacturing of consumer goods at home
- legitimate businesses which underreport income
why must we regulate businesses?
for the proper collection of taxes, to deliver public goods & services
why does the informal sector exist?
- this sector is profitable
- operates cheaply
- poverty, ppl are not able to make ends meet
- troublesome to comply with business requirements
- government unable to enforce laws properly
what are the issues in the informal sector?
- people fail to pay thei rtaxes
- scams are prevalent
- counterfeit items & low quality goods
importance of the informal sector?
- offers an alternative employment
- gives consumers more affordable options
- provides more places for products to be sold
market structure of the informal sector
informal sector is actually closer to being a genuine free market due to it not being subjected to government regulations
which department deals with the informal sector
department of labor and employment tries to transition informal workers to formal
