1.2.1 Economic Sectors: Primary, Secondary and Tertiary
Instruction :
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Go through all instructions and course details thoroughly before starting each lesson or activity.
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Watch the attached video lessons attentively and take clear, organized notes in your notebook.
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Write all answers for the attached worksheets in your notebook. Make sure your work is neat and properly labeled.
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Revise your notes and completed worksheets after each lesson to reinforce understanding.
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If you face any difficulty or have questions, note them down and contact your instructor or course coordinator for guidance.
Click to download the Video Lecture Handout.
Good morning class. Today we’re going to talk about how businesses are classified in a mixed economy.
That means understanding the difference between the private sector and the public sector. Don’t worry, I’ll keep it clear and simple with everyday examples.
First, let’s understand a mixed economy. A mixed economy means that both the government and private individuals run businesses.
So, in countries like Pakistan, the UK, or India, you’ll find some businesses owned by private people and others owned by the government.
Let’s start with the private sector. These are businesses owned by individuals or groups of people. Their main goal is usually to make a profit.
Examples include sole traders like your local grocery shop, partnerships like medical clinics, private limited companies such as family-owned textile factories,
public limited companies like Coca-Cola or Unilever, and multinational corporations like McDonald’s and Samsung.
The private sector focuses on profit, growth, efficiency, and satisfying customer needs.
Now, let’s move to the public sector. These are organisations owned and controlled by the government, either locally or nationally.
Their main aim is not profit, but to provide services that everyone needs. Examples include public hospitals, government schools, postal services,
water and electricity supply companies, railway services, and state-owned enterprises like Pakistan International Airlines.
Their goals are to provide affordable services, promote social welfare, and support economic development.
Let’s look at some differences. Ownership in the private sector is by individuals or private companies, while in the public sector it’s the government.
The private sector aims for profit, while the public sector focuses on social welfare and accessibility. Private businesses are funded by owners and investors,
while public enterprises are funded by taxes and government money. Accountability is also different: private sector businesses answer to owners and shareholders,
while public sector organisations are accountable to the public and government.
Why do we need both sectors? In a mixed economy, the private sector brings competition, innovation, and efficiency.
The public sector ensures that essential services like healthcare, education, and transport are available to everyone, even in areas where making profit is hard.
This balance supports both economic growth and fairness.
So class, let’s recap. The private sector is all about profit and customer needs, while the public sector is about providing essential services and promoting welfare.
Together, they create a balance that helps economies grow while ensuring fairness and access for all.
By the end of today’s lesson, you should be able to explain the difference between private and public sector enterprises, give examples of each,
and understand why both are important in a mixed economy.
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