How are the three sectors of the economy different from each other? Explain.

 

Answer:

Answer to be written in exam

BASIS

PUBLIC SECTOR

PRIVATE SECTOR

Ownership of Assets

Most of the assets of a public sector enterprise are owned by the government.

Assets of a private sector enterprise are owned by individuals or a group of individuals.

Service Provider

Government is solely responsible for providing services in the public sector.

The responsibility of provision of services falls on the indviduals or private owners.

Funding

The government raises money through various sources such as taxes, international loans etc.

The owners of a private firms put in their own money and the money they raise by providing services.

Motive

The motive of a public sector firm is to provide services to the public to help them.

The motive of a private sector firm is to earn profits and make the owners rich.

Examples

Railways (IRCTC, DMRC), Reserve Bank of India

SpaceX, TATA steel

 

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Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.