Public corporation is financed with
Capital raised from shareholders
Tax payer's money
Capital raised from stock exchange
Capital contributed by owners
Correct answer is B
Public corporations are run by the government through the tax paid by the people. They are established by an act of parliament or decree and it is controlled by the board of directors, appointed by the government.
One major criticism of foreign aid to developing countries is that it
Gives too much power and control to world bank
Encourages growth in government bureaucracy
Is capital using rather than capital saving
Provides incentives for capital flight
Correct answer is C
The loans help to create poverty, as capital that could have been invested instead was channeled into debt repayment.
The following are economic agents in any economy EXCEPT
Central Bank
House hold
Firm
Government
Correct answer is A
Economic agents are entities that make economic decisions. They include households, firms, and the government. The Central Bank, while an important institution, is not considered an economic agent as it does not make decisions about what, how, and for whom to produce. It is responsible for monetary policy and regulating the financial system.
The term 'investment' in macroeconomics means
Profit
Total amount of money invested in bonds and stocks
The total amount of capital goods in the country
The production of goods for immediate consumption
Correct answer is D
Investment is an activity of spending resources on creating assets that can generate income over a long period of time. It is flow of expenditures developed to projects producing goods which are intended for immediate consumption.