Question

differentiate between the public and private sectors in an economy with examples

Answer 1

Public sector refers to government-owned organizations and government-provided services. Private sector refers to (1) organizations that are not government owned, and ( 2) the goods and services provided by organizations outside of the government.

Answer 2

• Public sector :-
• The aim of public sector is to increase the facilities for public welfare.
• The government owns most of the assets and provides all the services.
• The decisions regarding production and distribution are taken by the government of the country.
• Public sector provides basic facilities like education, health, food and security to the people.
• Example :- Indian Railways and the post office etc.
• Private Sector :-
• The aim of Private sector is to earn maximum profits.
• The ownership of assets and delivery of services is the hands of private individuals or companies.
• The decisions regarding production and distribution are taken by owners or the manager of the country.
• Private sector provides consumer goods to the people.
• Example :- Reliance Industries Limited and Amul