Worksheet on classification of businesses

The Government of Country Y owns and controls many businesses. ‘The

public sector always produces goods and services more efficiently than
privately owned businesses’ a Government minister recently said. Other
ministers disagree and want to privatize many state-owned businesses. The
private sector businesses in Country Y produce 55 percent of the total output-
mainly in services such as transport, tourism and finance. The secondary
sector of industry produces 35 percent of total output.
Questions
a. What is meant by ‘public sector’? is a part of the economy owned and
contolled by the government. [2]

b. Identify two industries in the secondary sector

i.Manufacturing industry
ii. Construction industry [2]

c. Identify and explain two possible reasons why some ministers want to
privatize some businesses in the public sector
Identification
i. The private sector produces goods and services more effectively
than the public sector.1]
Explanation
. It would be more effective to be operating through private
organizations and be away from political hierarchies.

Identification
The private sector has better facilities which would benefit the
economy.
Explanation
it would initiate better management facilities with the specialized and
technical workforce [2]