What are some three differences in productivity levels of the public sector and the private sector and explain them ​

How the Private Sector Works

The private sector is made up of households, businesses, and organizations, spanning jobs in a variety of fields, such as retail, construction, and manufacturing. This sector includes both public and private companies, ranging from behemoths like Walmart and Amazon, to small, mom-and-pop operations.

As private-sector businesses are owned and managed by private individuals or enterprises, businesses within this category focus on entrepreneurial activities, taking risks to create jobs and generate a profit. They are competitive and they have an incentive to be efficient.

How the Public Sector Works

The public sector references all government organizations, including the federal government, states, and localities. Public-sector organizations focus on services to the public as a whole, including education, welfare, the legal system, employment, natural resources, and health services.

Federal agencies like the IRS, FBI, and the Department of Labor, as well as state services like unemployment benefits, children and family services, and insurance regulation, are all part of the public sector. In practice, the Bureau of Economic Analysis and the Federal Reserve Board use data from the public sector to measure the nation’s financial and economic performance, while local and state agencies use the data to create budgets and programming.

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