May 2019 Q1 b.
Outline FIVE (5) characteristics each of the following:
Public Sector
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- Accountability, ultimately to Parliament.
- Funding. The public sector can obtain funds in three main ways.
o Raising taxes
o Making charges (e.g. for prescriptions)
o Borrowing - Demand for services. There is a relationship between the price charged for something and the ‘demand’. In the public sector demand for many services is practically limitless.
- Limited resources. Despite the potentially huge demand for public services, constraints on government expenditure mean that resources are limited and that demand cannot always be met.
- Public interest. Governments once believed the public interest was best served if the state run certain services.