Question

Differentiate between the public and private sectors in an economy with examples.

CBSE Class X Social Science SA ( 3 marks)

Answer 1

Public Sector :
(i) The government owns most of the assets and provides all the services.
(ii) The purpose of the public sector is not first to earn profits. Government raises money through taxes to meet expenses on the services rendered by it.
(iii) Railways or post office is an example of the public sector.
Private Sector :
(i) Ownership of assets and delivery of services is in the hands of private individuals or companies.
(ii) Activities in the private sector are guided by the motive to earn profit. To get such services we have to pay money to these individuals and companies.
(iii) Tata Iron and Steel Company (TISCO) or Reliance Industries Ltd.(RIL) are examples of private sector.

Answer 2

1.In Public sector , govt. owns most of the assets and provides all the services.

2.Railways,post office,airport,etc. are examples of public sector.

3.The purpose of public sector is not just to earn profits

1.In Private sector, the ownership of assets and delivery of services is in the hands of private individuals or companies .

2.Companies like TISCO,Reliance Industries Limited, dabur,etc. are privately owned .

3. the motive of private sector is to earn profits.