Public & private services

Question 1

How much of the economy & employment do services account for?

Answer 1

80%

Question 2

What determines the level, quality & access to services?

Answer 2

Where people live/Geography

Question 3

Pure public goods (services) have how many main characteristics

Answer 3

3

Question 4

Pure public good characteristic: Joint Supply

Answer 4

…supply to any one person allows supply of identical quality good to all people at no extra cost

Question 5

Pure public good characteristic: Non excludability

Answer 5

…supply to any one person prevents good being withheld from any other person wishing access to it
…people who do not pay for a service cannot be excluded from its benefits

Question 6

Pure public good characteristic: Non Rejectability

Answer 6

…once a service is provided, it must be fully and equally consumed by all, even those who might not wish to do so

Question 7

Impure public good characteristic: Tapering

Answer 7

…benefits of a public good diminish with distance from point at which they are supplied

Question 8

Impure public good characteristic: Jurisdictional partitioning

Answer 8

…different parts of the country (e.g. Local Authorities) for various reasons will invest differential resources in public services

Question 9

Impure public good characteristic: Spillover

Answer 9

…when someone receives benefits from an adjoining jurisdiction without having to pay for them

Question 10

How do we determine how resources are allocated to public services in UK?

Answer 10

Central government allocates resources to regions on the basis of some capitation formulae.

Regional jurisdictions have the choice of how to allocate these resources to specific locations: hospitals, schools, libraries, etc

Question 11

Private Services are driven by…

Answer 11

…profit & market share

Question 12

What are the three conflicting objectives in resource allocations?

Answer 12

Equity, efficiency and effectiveness

Question 13

What is the main difference between the drive for public service provision, and the drive for private service provision?

Answer 13

Public services provided based on NEED

Private services provided based on DEMAND

Question 14

What are the two most common types of social exclusion faced in relation to access to services?

Answer 14

Geographical exclusion: too far/inadequate transport provision
Economic exclusion: cost of transport