How does corruption causes the national revenue?

Question

BlackTom AI · Accepted Answer

Question: How does corruption causes the national revenue?

Option a: 'Help to establish relationship with foreign investors' – This is misleading. While some may incorrectly think corruption could grease deals, in reality corruption damages trust, increases political and economic risk, and reduces legitimate foreign investment. Therefore this option does not explain how corruption affects national revenue and is generally false in responsible economic analysis.

Option b: 'It encourage public donor' – This statement is unclear and inaccurate. Corruption typically undermines voluntary public generosity and donor confidence because funds are diverted or misused, not encouraged. So, it does not correctly describe a mechanism by which corruption affects national revenue.

Option c: 'Can increase currency in Malaysia' – Corruption does not increase a country’s currency supply. National revenue is tied to legitimate tax collection, fees, and other official receipts. Corruption may distort fiscal outcomes, but it does not literally increase the currency stock or revenue in a lawful sense; this makes the option incorrect.

Option d: 'Will taint the name and dignity of the nation' – This is the most accurate statement about corruption’s broader impact. While it speaks to reputation, it also helps explain indirect effects on revenue: damaged reputation can deter investment, increase borrowing costs, and reduce tax morale, all of which undermine national revenue over time. This option captures the realistic consequence that corruption harms the country’s standing and economic performance, which in turn affects revenue generation.

How does corruption causes the national revenue?Single choice

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