Public and Private Sectors
The private sector is made up of businesses owned by individuals, while the public sector is owned and run by the government.
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The private sector is made up of businesses owned by individuals, while the public sector is owned and run by the government.
- Schools and the NHS are public services
- Shops and factories are private
- Mixed economies have both
🧠 Quick quiz
Three questions. Score 2 or more to complete the topic.
What is Public and Private Sectors?
Within Economics & Civics, which covers money, markets, business, government, law and citizenship: how societies are organised and run, this topic explains Public and Private Sectors. Economics and civics topics explain how money, markets, laws and government affect people, so each topic here pairs a clear definition with a model.
Check that you can explain Public and Private Sectors in your own words and give one example from everyday life. If you can do that, you have understood the core idea.
Understanding Public and Private Sectors helps you read the news critically and weigh up policies, choices and arguments about society.
Public and Private Sectors in detail
The private sector consists of businesses owned by individuals or groups, and run to make a profit, such as shops, banks and manufacturers. The public sector is owned and controlled by the government and provides services for the public, such as the NHS, state schools, police and the armed forces, paid for mainly by taxes.
The voluntary (third) sector includes charities and not-for-profit groups. Debates concern which services should be public or private. Privatisation moves state-owned businesses to the private sector, which can improve efficiency but raise concerns about access and price. A mixed economy has both sectors.
How the interactive helps you understand Public and Private Sectors
Watch the pie chart in the interactive. Use any sliders or buttons it offers to change the values and see how the pie chart responds.
Before you change anything, predict the result. Then change one value at a time and check whether your prediction was right. This is a quick way to build a correct mental model of Public and Private Sectors.
Real-life uses and examples
- Use Public and Private Sectors to weigh up the pros and costs of a policy or decision.
- Explain Public and Private Sectors to a classmate using a choice you make yourself, such as spending pocket money.
- Give a balanced answer about Public and Private Sectors by considering more than one point of view.
Common mistakes to avoid
- Confusing a short-term effect with a long-term one.
- Giving an opinion without evidence or a clear economic or civic reason.
- Learning the definition without testing it. Use the quiz and the interactive to check that you can apply the idea.
Frequently asked questions about Public and Private Sectors
What is Public and Private Sectors?
The private sector is made up of businesses owned by individuals, while the public sector is owned and run by the government.
What are the most important points about Public and Private Sectors?
The main points are: Schools and the NHS are public services; Shops and factories are private; Mixed economies have both.
Why is Public and Private Sectors useful?
Understanding Public and Private Sectors helps you read the news critically and weigh up policies, choices and arguments about society.
How can I practise Public and Private Sectors?
Open the interactive at the top of this page and change the controls one at a time. Predict the result before each change, then take the three-question quiz. A score of two or more marks the topic as complete on this device.
Which topics are related to Public and Private Sectors?
Related topics in Economics & Civics include Elections and Voting Systems, The Executive: Prime Minister and Cabinet, The Constitution.