Public And Private Sectors

Question 1

What is the public sector

Answer 1

The public sector is businesses provided by the local or national government and are payed for by taxation

Question 2

What is the private sector

Answer 2

The private sector is where private services are provided by private businesses

Question 3

Name 3 benefits of the public sector

Answer 3

1. Profits are kept low
2. Costs are covered by taxes
3. Directly controlled by the GVMT

Question 4

Name 3 negatives of the public sector

Answer 4

1. Individuals pay for unused services through taxation
2. Standards can drop due to lack of competition
3. Can be expensive to run so increases taxation

Question 5

What is privatisation

Answer 5

Privatisation is where a public service is sold to shareholders in the private sector by the GVMT

Question 6

Name 2 examples of privatisation

Answer 6

1. British Gas

2. British airways

Question 7

Name 2 benefits of privatisation

Answer 7

1. GVMT doesn’t spend taxes on that

2. Pay for services you use

Question 8

Name 2 negatives of privatisation

Answer 8

1. Unemployment as the private sector is more efficient so will cut costs
2. The price of use will increase

Question 9

What is nationalisation

Answer 9

Nationalisation is where private sector enterprises are bought/taken over by the GVMT as they believe they are essential and can be ran better