Distinguish between the ‘private sector' and the 'public sector'.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2016). The mark or mark type is shown in brackets.

1. [1] The private sector consists of businesses owned and controlled by individuals or groups of individuals.
2. [1] The public sector consists of organisations owned by, accountable to and controlled by the State (central or local government).
3. [3] (Award up to 3 marks for two advantages soundly explained. One advantage soundly explained or two partially explained gets 2 marks; One advantage partially explained or a list of two gets 1 mark). Advantages include:
4. the provision of goods and services that the private sector might not provide (merit and public goods)
5. the provision of critical goods and services that a State/Government needs to maintain control over
6. the provision of loss-making services where the social benefit is considered important
7. appropriate funding/investment can be provided by the State to fund and develop essential goods and services
8. provide employment opportunities and career progressions
9. the internal environments may be less demanding than the private sector
10. they often focus on social value and values, rather than raw competitive objectives.