Which of the Following Institutions Form the Private Sector in an Economy

question 50

Multiple Choice

Which of the following institutions form the private sector in an economy?

• A)Only households
• B)Households and the government
• C)Households, businesses, and foreign firms
• D)Households and businesses only
• E)Foreign investors and foreign governments

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Definitions:

Common Law

A legal system characterized by judicial decisions that are recognized as binding, forming a body of law developed through court decisions over time.

Checking Account

A bank account that allows depositors to write checks and make withdrawals, often used for daily financial transactions.

Drawer's Account

Refers to the account from which a check is drawn; the account belongs to the drawer (the person who writes the check).

Payee

A payee is a person or organization to whom money is paid or is to be paid.