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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 per cent of total output - mainly in services such as transport, tourism and finance. The secondary sector of industry produces 35 per cent of total output.
a) What is meant by 'public sector'?
b) Identify two industries in the secondary sector.
c) Identify and explain two reasons why the tertiary sector of industry is becoming more important in most economies.
d) Identify and explain two possible reasons why omen ministers want to privatize some businesses in the public sector.
e) Do you agree with the Government minister's view that: 'The public sector always produces goods and services more efficiently than privately owned businesses'? Justify your answer.
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