Characteristics of a Private Sector

Topics: Government, Public services, Economics Pages: 3 (542 words) Published: July 7, 2011
Characteristics of a private sector?
1.these businesses are owned by ordinary people
2.get loans from the commercial banks and savings
3.maximizes profit
4.import and export goods for public
5.provide both goods and services.
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Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. The term is associated with a social consensus (usually expressed through democratic elections) that certain services should be available to all, regardless of income. Even where public services are neither publicly provided nor publicly financed, for social and political reasons they are usually subject to regulation going beyond that applying to most economic sectors. Public service is also Characteristics

A public service may sometimes have the characteristics of a public good (being non-rivalrous and non-excludable), but most are merit goods, that is, services which may (according to prevailing social norms) be under-provided by the market. In most cases public services are services, i.e. they do not involve manufacturing of goods such as nuts and bolts. They may be provided by local or national monopolies, especially in sectors which are natural monopolies. They may involve outputs that are hard to attribute to specific individual effort and/or hard to measure in terms of key characteristics such as quality. They often require high levels of training and education. They may attract people with a public service ethos who wish to give something to the wider public or community through their work and are prepared to work harder for less pay as a result. (John Kenneth Galbraith has looked at the role of such "public virtue" in economic growth.)

The Private Sector

The private sector is usually composed of organizations that are privately owned and not part of the...
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