REVISION

Answer the following questions: 1. According to John Kenneth Galbraith, which activities are as important as the production of goods? 2. What does „tertiarisation” term mean? 3. According to the text „Where did all the jobs go?”, what are the consequences of the decline of the manufacturing sector in the West? 4. Explain the sentence: „..for most of us the idea of a job for life – or at least a safe job- has been untrue for years.”

RB p. 20 PUBLIC SECTOR

PUBLIC OR PRIVATE? Part of the economy owned and operated by government authorities and public corporations is called the _____sector. Part of the economy owned and operated by individuals and private enterprises is______sector.

 PROVISION The public sector provides goods and services for the benefit of all the citizens.  FINANCED Public goods and services are financed from taxes collected from all the citizens and sometimes by their own trading surplus or profit.

PUBLIC GOODS MERIT GOODS  Law, police, defence, Parks, street-lighting Characteristics:  The consumption by one consumer does not reduce the quantity available to other consumers.  Once provided anyone can use them. (e.g. street-lighting)  Education, health care, libraries, vaccination) Characteristic: The concept is based on the idea that people would not buy enough of them if they were provided by the free market. (e.g. people would not buy expensive health insurance as they think nothing would happen to them, and if it happens they can’t afford to pay)

TYPES OF COMPANIES AND ORGANIZATIONS  public corporations  central government departments  government agencies  local authority services

1.THE CENTRAL GOVERNMENT Public services (financed from taxation): o Health o Defence (the police, the army) o Education Public corporations (sold at a price, profit) o Utilities /electricity, water, gas, sewerage/ o BBC / HRT, Bank of England /HNB o British Rail / HŽ

1. THE CENTRAL GOVERNMENT Public services which are financed from taxation Health Defence (the police, the army) Education Public corporations (sold at a price, profit)  Utilities, electricity, water, gas  BBC/HRT, Bank of England/HNB  British Rail / HŽ

2. LOCAL AUTHORITIES (MUNICIPAL UNDERTAKINGS) o Cemeteries, crematoriums, market halls, o Street cleaning, dustbin collection, waste dump o Car parks, street lighting, fire protection o Recreation facilities, stadiums, golf courses, swimming pools o Theatres, galleries, museums, airports

FILL IN THE GAPS WITH THE WORDS free of charge efficiency merit well-being corporation profit (2x) taxes public 1. Businesses in the private sector are run by individuals and they are primarily motivated by a ____________. 2. Goods and services in the public sector are most often provided ___________. 3. Activities in the public sector are financed from _____ and sometimes by companies’ surplus ________. 4. Health care is an example of ______ goods. 5. Defence, police and law are examples of ______ goods. 6. Goods and services provided by the public sector increase the _______ of the society aa whole. 7. Companies in the public sector are often privatized in order to increase their _________. 8. National television is an example of a public _______.

FILL IN THE GAPS WITH THE WORDS free of charge efficiency merit well-being corporation profit (2x) taxes public 1. Businesses in the private sector are run by individuals and they are primarily motivated by a profit. 2. Goods and services in the public sector are most often provided free of charge. 3. Activities in the public sector are financed from taxes and sometimes by companies’ surplus profit. 4. Health care is an example of merit goods. 5. Defense, police and law are examples of public goods. 6. Goods and services provided by the public sector increase the well-being of the society aa whole. 7. Companies in the public sector are often privatized in order to increase their efficiency. 8. National television is an example of a public corporation.

Fill in the missing verbs 1. Most private businesses are r____ by individuals who are primarily motivated by profit. 2. Businesses in public sector are o_____ by the government. 3. Businesses in the private sector are very important as they p________ most jobs in every economy. 4. The public sector is financed by taxes c________ from all the citizens and by its own profit. 5. Public goods are those whose consumption does not r_______ the quantity available to other consumers. 6. Merit goods, like health care, are provided by the public sector because if they were only provided by the private sector many people would not be able to a______ them. 7. Since the 1980s many companies that once belonged to the public sector were p_____, i.e. transferred into private hands.

Fill in the missing verbs 1. Most private businesses are run by individuals who are primarily motivated by profit. 2. Businesses in public sector are owned by the government. 3. Businesses in the private sector are very important as they provide most jobs in every economy. 4. The public sector is financed by taxes collected from all the citizens and by its own profit. 5. Public goods are those whose consumption does not reduce the quantity available to other consumers. 6. Merit goods, like health care, are provided by the public sector because if they were only provided by the private sector many people would not be able to afford them. 7. Since the 1980s many companies that once belonged to the public sector were privatized i.e. transferred into private hands.

HOMEWORK TASKS Read: RB p. 38, 39 “Dodger Mania” Make one paragraph summary of the Public Sector using the words from exercise V, p. 35 Do a mind map on Public sector Do all the exercises from the PP presentations which you haven’t done so far Read the text that I provided link for “This is money” (Three sectors presentation, Assignement 4)