What Are the Principle Advantages and Disadvantages of the Public and Private Sectors Relative to Each Other? How Does the Government Seek to Combine the Best Features of Both in Providing Public Goods and Merit Goods

840 Words May 4th, 2011 4 Pages
The Public Sector sometimes referred to as the state sector is a part of the state that deals with the production, delivery and allocation of goods and services by and for the government or its citizens. This can be done on a national local or regional level. The Private sector is the polar opposite and is not controlled by the state. It is controlled by private individuals or organisations for private profit.

Public goods are those that are non-rivalrous and non-exclusive. Non-rivalry means that the consumption of the good by one individual does not reduce the availability of the good for consumption by others. Non-excludable being that no one can be effectively excluded from using the good. A private good on the other hand is a
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You could also find yourself working extremely long laborious hours to meet deadlines which you won’t get paid extra for.

In the Private sector the consumer also has a choice, if a certain good isn’t being sold it will simply stop being made. This therefore means that the private sector generally responds to what’s happening in the market relatively quickly. The private sector being the private sector is limited to what it can provide. It is not in a position where it can provide public or merit goods.

The public sector is non-profit run and deals with allocating, delivering and producing good and services according to need. This is both a positive and negative. It can be seen as a positive as it has the ability to co-ordinate on a national scale where private organisations don’t have the ability to do this. Although this may well be the case, some say that this is undertaken to slowly and inefficiently.

Public organisations also have the ability to plan for a long time where as the private sector generally looks shorter term. There tends to be less pressure working in the public sector, which means you, have greater job security. It does prevent people from being innovative as the have less incentives to do so. Individuals in the public sector also have fewer incentives to keep cost down. Its not affecting them directly so why
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