In the economy the sectors are classified into public and private on the basis of?

Answer 1

The economy can be classified on the basis of ownership: google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad);

Public sector:

• It includes all those economic activities that are owned and managed by government agencies.
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• Major activities are social security services, managing national defenses and administering public transportations.

Private sector:

• Involves economic activities that are managed by private institutions.
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• Profit making is its sole purpose. However, some exceptions are possible and functional in the sector.

Voluntary sector:

• Known as the third sector or the civic sector.
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• It includes those social activities that are undertaken by non- governmental and non- profit organizations.
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• Includes various political parties, volunteer communities and religious and charitable organizations.

Another economic sector is the quaternary sector. It covers various intellectual activities in an economy related to:

• culture
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• government
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• scientific research
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• Information technology

The behavior and economic importance of different sectors vary from one another. A particular sector may be more dominant in a nation than others. The contribution of primary and public sectors is more evident in under-developed economies than developed nations.