Question

Differentiate between public provision and public production.

Hint:

Public provision focuses on supplying services funded by the government, while public production involves government-owned entities producing goods.

Answer 1

\[ \begin{array}{|l|l|} \hline \textbf{Public Provision} & \textbf{Public Production} \\ \hline \text{It refers to the supply of goods by the government, funded through taxes } & \text{It refers to the production of goods and services by government-owned entities.} \\ \hline \text{Example: Free education in government schools.} & \text{Example: Production of electricity by state-owned companies.} \\ \hline \text{May involve private sector participation for delivery.} & \text{Entirely managed and controlled by the public sector.} \\ \hline \end{array} \]