Question 10 of 10 Which situation best illustrates the process of capital formation?
A. An engineer tries to limit her spending during the week.
OB. An artist buys bonds that will increase in value over time
OC. Afactory worker takes out a high-interest loan to buy a new home.
D. A farmer increases his profits by growing a variety of new crops.

OC. A factory worker takes out a high-interest loan to buy a new home.

Explanation:

This situation is most suitable for the employer but also the banking sector. If a worker takes such a loan, he will be forced to continue working to repay that loan. The bank will profit primarily because of the interest it has taken. It will also benefit the employer for several years to have workers who will nonetheless be loyal to the company, given that legal sanctions for non-refund of interest follow.

panem is a communist totalitarian dictatorship where all the resources and how they are allocated belongs to the capitol. the districts exist only to provide goods and services for the capital and most of the citizens live in poverty. it is a police state where the "peacekeepers" use force and threats to keep the people under control. dissent is outlawed and those who disobey the law are executed, flogged, or turned into avoxes. the games are another means in which the ruling elite in the capitol exert their power over the districts. when reading the books i drew parallels between panem and the soviet union and north korea. in no way is panem capitalist. the people in the capitol are wealthy but the majority of them are involved in the government somehow. it was the same way in the former soviet union where bigwigs in the communist party and high ranking government officials were given access to goods, services, medical treatments not available to the general public. if you think panem has a capitalist economy you need to brush up on your economics.