Question

Sectors in terms of ownership :public and private sector

Answer 1

Answer:

Explanation:

Based on the ownership, economic activities can be classified into public and private sectors.

An economic activity owned and managed by the government is called a public sector activity. An economic activity owned and managed by an individual or a group of individuals is called a private sector activity.  

The main objective of private sector activities is to make a profit. The motive of public sector activities is to make a profit and also provide essential services.

The services provided by the government through the public sector are:

Basic essential services

Infrastructure development services

Community support services

It is the primary responsibility of the government to provide basic essential services like education, healthcare, housing, food and nutrition and safe drinking water to all the people. The private sector cannot provide such services at a reasonable cost. Private sector companies sell their products at a price higher than the production cost to make a profit and stay in business.

The government bears a part of the cost for some commodities to make them available at a reduced price to some sections of society.