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

Question

Quizplus · Accepted Answer

The private sector consists of households, businesses, and foreign firms. Foreign investors and foreign governments may be included in the private sector if they invest in or operate businesses within the economy. The government is part of the public sector, not the private sector.

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