The Role Of Public And Private Sector Essay

1205 Words Nov 14th, 2015 null Page
Production, trading or distribution and consumption of limited goods and services is what makes an economy or economic culture. It is done by different agents within a given locality. The agents could be anyone i.e. individuals, businesses, organisations or government. There are three types of economy i.e. capitalistic, command economy and mixed economy.
The United Kingdom operates in a diversified economy that is one of the largest in the world. The British economic system demonstrated the characteristics of a mixed economy, combining market based features with some socialist characteristics. In the mixed economy, it has co-existence of public and private sectors. The role of public and private sector differs in each economy. Public sector is owned and operated by the government. They are not aiming to make any profit and are not competing with anyone. They provide services to the people of their country. The services government provides include health, education, police services and etc. On the other hand, private sector is owned and operated by individuals, they are small business which run with aiming to make maximise profit, overtaking their competitors and stay running. The examples include retail stores, credit unions and etc.
Whereas the capitalistic economy is also known as free market and Laissez faire economy. As the second name suggests, this is a free market so every individual have freedom to start a business of their own choice. In this type of production;…

Related Documents