Would like to know what Public and Private Sector Mean. In simplified terms please and thank you.
The public sector is supported by taxes -- like public schools, police, highways, government.
The private sector is supported by selling goods and services to customers -- like private schools, shoes, computers, phone service, beauty salons.
Thanks so so much. Your explanations make perfect sense to me. :)
You're welcome.
Certainly! In simplified terms, the public sector refers to the part of the economy that is controlled and operated by the government. It includes government agencies, institutions, and organizations that provide public goods and services to the society, such as education, healthcare, law enforcement, infrastructure, and social welfare programs.
On the other hand, the private sector refers to the part of the economy that is owned and controlled by private individuals or businesses. It includes privately owned companies, organizations, and enterprises that produce goods and services for the market, with the primary goal of making a profit. Examples include businesses in industries like retail, finance, technology, manufacturing, and services.
To determine whether a particular entity belongs to the public or private sector, you can consider who owns and manages it. If it is owned and run by the government, it falls under the public sector. If it is owned and operated by private individuals or businesses, it belongs to the private sector.
It's important to note that the public and private sectors often work in collaboration, and their roles can vary from country to country. Understanding the distinction between the two sectors helps us comprehend how different parts of the economy function and how various goods and services are provided.