Question

Write the difference between public provision and public production

Answer 1

What is the difference between private goods and public goods?

Goods produced in a country maybe of two types— private good and public good some of these good are produced by the private Producers and they are sold in the market. These goods are divisible and only those who pay the price are entitled to consume such goods are known as private goods.

There are also some good which cannot be divided into small unit and once they are provided everybody can consume them whether they pay for them or not these good are supplied through the government budget such good are known as public goods. Eg. Defence, law and oder, public administration etc.