Public Sector Flashcards
What is the public sector
The public sector is owned and operated by the government and it is focused on the general purpose and providing good for citizens
What is the private sector
A segment of the economy owned and controlled and managed by private individuals or enterprises who often focus on profit maximisation
What’s the similarity between public and private sector
Both operate within the law provide goods plus services. They also employ citizens and are customer service oriented
What does PIGSEC stand for in relation to aims of the private sector
P- profit maximisation
I - increase shareholder value
G- grow and increase market share
S - survival
E - ethics
C - customer service
What are the and of the public sector
Focuses on supplying needs more than wants. Core role is to create a fair and just society and efficient economy
What are the two criteria for a public goods
Non excludable - anyone can use the good if they want
Non rivalry - someone’s use of a product will not hinder another persons use of the product
What are merit goods
Under consumer goods provided by both the private and public sector to increase their usage
