1. The public and the private sector

2. Intro - vocabulary goods and services public sector private sector public goods Free of charge / no charge For the benefit of citizens Consumption Free market Efficient income

3. Match Run / operate Own Provide Finance Collect Afford Increase decrease expensive things the risk taxes well-being, economic growth goods / services / jobs from taxes a company

4. Match - key Run / operate Own Provide Finance Collect Afford Increase decrease a company goods / services / jobs from taxes Taxes expensive things well-being, economic growth the risk

5. Run / operate, Own, Provide, Finance, Collect, Afford, Increase, decrease 1.We want to _____ the well-being of our country. 2.The government must ____ taxes. 3.I cannot _____ to buy a new car. 4.Public sector _____ lot of goods and services for everyone. 5.In socialism the government ____ means of production. 6.We ______ a little company. 7.Tge government _____ its activities from the taxes. 8.We want to _____ the risk of diseases.

6. Can you make nouns? Provide Produce Use Afford Sell own

7. Verb-nouns: key Provide Produce Use Afford Sell own Provision Production Usage Affordable Sales owner

8. Circle the correct word: This company provides / provision IT services. The government takes care of the provide / provision of health care. They production / produce food. The produce / production is increasing. We use / usage a lot of paper in our office. Expensive perfumes are not afford / affordable to me. I cannot afford / affordable to buy new shoes. He is in charge of sales / sell. They will sales / sell the piano to me.

9. PRIVATE & PUBLIC SECTOR

10. Name some companies that you know well. Who owns them? How are they different?

11. Private sector Who owns companies? Individuals What is their main aim? To make profit How many companies are there in the private sector? In the majority of free-market economies most companies are Why are they important? provide most jobs, contribute taxes, increase the well- being of the society as a whole

12. Public sector Who owns companies and organizations? Government owns and controls them What do they produce? goods and services that are generally free of charge Why are there free of charge? For the benefit of all its citizens Examples? social security, defense, urban planning law, police, parks, defense. How are they financed? From taxes collected from all the citizens and sometimes by their own trading surplus or profit.

13. Public goods Examples: law, police, parks, defense, etc. non-rival = consumption by one consumer does not reduce the quantity available to other consumers. non-excludable = once provided anybody can use them. E.g. street-lighting. Why in general private sector does not provide them? Because there is no way to charge for their usage

14. Merit goods Examples: education, health care and libraries, etc. Would everybody buy those services if they had to pay a lot for them? NO - Some people would not have enough money to buy them. E.g. expensive health insurance → they would think nothing would happen to them. If something happens → they wouldn’t have money to pay. Some merit goods when provided privately → affordable only to rich people. Why does the state think they are good? for an individual for a society as a whole → E.g. Vaccination Both public and merit goods increase the well-being of the society and increase economic growth.

15. Types of companies and organizations in the public sector 1.Public corporations (production of electricity, national television, public transport etc) 2.government departments or ministries 3.local authority services What is privatization? some public sector businesses → to the private sector (companies sold to private owners, outsourcing) of some activities. over the last thirty years Why privatization? privately run companies are more efficient the sale of publicly owned companies brings large income to the government.

16. Revision: p14/I Read the sentences and write down which sector they refer to. 1.Businesses are run and owned by the government. 2.Businesses are run and owned by private individuals. 3.Companies' aim is to make profit. 4.Companies' aim is to provide goods and services for the benefit of everyone. 5.Involves police, law, army, health etc. 6.Involves all kinds of businesses. 7.The production is financed through taxes. 8.The production is financed through private investments.

17. Organizations that run services or industries on behalf of the government. The sector of the economy owned and operated by individuals and companies, primarily motivated by profit. Types of goods that have to be provided by the public sector because the private sector cannot make a profit on them. The sector of the economy owned and operated by the government and whose aim is to provide goods and services to all its citizens. Goods and services provided by the public sector whose concept is based on the idea that people would not buy enough of them if they were provided by the free market. The transfer of public sector resources to the private sector. The quality of public goods that refers to the fact that once provided anybody can use them. The quality of public goods which means that consumption by one consumer does not reduce the quantity available to other consumers. public goods non-excludable non rival public sector merit goods public corporations private sector privatization

18. Which of the following should belong to the private sector, which to the public sector and which to both? What are the advantages and disadvantages for each of your choices? parks Army beaches libraries dentists police education

19. The more the merrier Capitalism, a love story, by Michael Moore http://vimeo.com/34656343 Unmanned: America's Drone Wars by Robert Greebwald https://www.youtube.com/watch?v=kibfq1zvd L4 https://www.youtube.com/watch?v=kibfq1zvd L4 Dirty wars, by Richard Rowley