THE PUBLIC SECTOR. run & owned by the state (central / local government). M erit goods Definition
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THE PUBLIC SECTOR
run & owned by the state
(central / local government)
Goods or services (such as education and vaccination) provided free for the benefit of the entire society by a government, because they would be under-provided if left to the market forces or private enterprise.
An item whose consumption is not decided by the individualconsumer but by the society as a whole, and which is financed by taxation.
A public good (or service) may be consumed without reducing the amount available for others, and cannot be withheld from those who do not pay for it. Public goods(and services) include economic statistics and other information, law enforcement, national defense, parks, and other things for the use and benefit of all. No market exists for such goods, and they are provided to everyone by governments.
Publicservices (financed from taxation):
Public enterprises(sold ata price, profit)
(policy decisions – financial targets, prices)
– day-to-day control
– the Board reports to ministers in charge –
ministers report to the Parliament
(uneconomic for private businesses)
- Bosses are politicians
(lack of business expertise)
- Local issues may be disregarded in
favour of policies of national importance
- Taxpayers pay for losses
USE THE WORDS BELOW TO COMPLETE THE PARAGRAPH:goods, public sector enterprises, industries, public, private, financial, productive, service
Do you agree with the: Three reasons public sector employees are killing the economy? Explain your attitude.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
public sector authority + private party
government-controlled companies into
raises revenue for the government