Topic 4-The Public sector

Question 1

Define Public Sector

Answer 1

The part of the economy where resources are owned by the country and controlled by the government.The aims of this sector are to provide a service snd break even

Question 2

Difference between Public and Private sector

Answer 2

Private sector is owned by private individuals,controlled by private owners or directors and managers working on their behalf,the capital comes from private owners,the profits are distributed to the owners and they aim to make a profit

Public sector is owned by the country,controlled by the national government or the local authority,the capital comes from the government via tax revenue,the profits are handed back to the government or the local authority and they aim to provide a service

Question 3

Public Corporation

Answer 3

A government controlled organisation.For example British Nuclear Fuels.They aim to at least break even in order to fund future investment.They are controlled by the a Government minister and run by a board of directors

Question 4

Advantages of public corporation

Answer 4

• Provide a service to the public
• Government is in a good strategic position
• Essential services are provided

Question 5

Disadvantages of public corporations

Answer 5

• Lack profit motive
• Inefficient
• The running of the organisation is open to political influence

Question 6

What are municipal undertakings

Answer 6

These are the activities organised by local councils.They include:refuse collection and disposal,street cleaning,health and environmental services,parks and recreational facilities,local housing and maintenance of local roads