Public & Private Sector
Business: Cambridge International GCSE (2027 Exams), topic 1.2.2
Public & Private Sector
In a mixed economy, goods and services are provided by both the public and private sector.
Public sector
- The public sector consists of organisations that are owned and controlled by the government.
- The government subsidises these organisations.
- So their main focus is on providing services to the public rather than making a profit.
- Examples of public sector organisations include public transport on non-profitable routes, the National Health Service (NHS), and public schools.
Private sector
- The private sector consists of organisations that are owned and controlled by individuals or private groups.
- Private sector organisations are driven by the goal of profit maximisation.
- Examples of private sector businesses include Tesco, Nike, and local restaurants.
Mixed economy
- A mixed economy is one where resources are allocated through both government intervention and the price mechanism.
- The price mechanism is the process where prices are determined by supply and demand.
- Which signals to businesses and consumers how much to produce or consume.
Test yourself on Public & Private Sector
Who forms the public sector?
What are businesses in the private sector driven by?