Outline Three Reasons for the Importance of the Public Sector

question 32

Essay

Outline three reasons for the importance of the public sector.

---

Definitions:

Transfer Payments

Payments made by the government to individuals without any expectation of a good or service being provided in return, such as pensions or welfare benefits.

Domestic Output

The overall valuation of all goods and services made within a country's territorial limits within a designated timeframe.

Governmental Purchases

Expenditures made by the government for goods and services that are directly used to provide public services or for government consumption.

Domestic Output

The complete total of the value of all outputs and services fashioned within a nation's borders across a defined time span.