The informal sector in the periphery subsidizes products for consumers in the core.

Question

Quizplus · Accepted Answer

This statement is true as the informal sector in the periphery often produces goods and services at a lower cost than formal enterprises in the core, which can then be sold to consumers in the core at a cheaper price. This results in a subsidy for consumers in the core, with the informal sector in the periphery bearing the cost of producing and selling these goods at a lower profit margin.

The Informal Sector in the Periphery Subsidizes Products for Consumers