7B : public sector

Question 1

what is public sector ?

Answer 1

services designed to provide and not make profit, owned by the government

also :
* funded by the public by paying taxes e.g. income and paying tax

• funded by businesses by paying corporation tax

Question 2

what are some examples of public sector Organisations ?

Answer 2

• BBC
• national health service
• prison service

Question 3

what are the feature of the public sector ?

Answer 3

• non-rivalry : one consumer using the product or service does not stop other consumers using the same product/service
• not excludability : the goods and service provided are for any person who needs/qualifies for them

Question 4

what are public goods ?

Answer 4

Goods that have the characteristics of non-excludability and non-rivalry. firms cannot charge people for using them.

e.g. street lights, light house, national parks

Question 5

what are merit goods ?

Answer 5

are under consumed goods that have private benefits. e.g. exercise , education , veg .

Question 6

what are some advantages of public sector organisations ?

Answer 6

• meets the needs of people : some people may not be able to pay e.g. NHS
• provide certain goods and services for the benefit of every one and raise standards of living

*public sector companies usually offer goods and services that are the point of sale e.g. parks , libraries

Question 7

what are some disadvantages of public sector organisations

Answer 7

• very expensive for the government to run
• they are often inefficient : little incentive to cut costs or provide a better service
  ( because there is not competition )