Social Science (087) — AI-generated practice question

Motive difference: The private sector is driven by the profit motive — it undertakes activities only if they yield financial returns. The public sector is not driven by profit; instead, its purpose is to provide services for public welfare, funded through taxes.

Why government builds roads, dams and bridges: These projects require huge capital investment beyond the capacity of private companies. Additionally, collecting charges from thousands of users is impractical, and if private firms did build them, they would charge very high rates unaffordable to the general public. Therefore, the government undertakes such heavy spending to ensure these facilities are available to everyone.

Source: Sectors in Terms of Ownership: Public and Private Sectors, Chapter 2

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• Key contrast to highlight: Profit motive (private) vs. public welfare/service motive (public) — this is the core point examiners look for.
• Three reasons explain government intervention: (1) large investment required, (2) difficulty collecting money from users, (3) private firms would charge unaffordably high rates. Mentioning all three secures full marks.
• Avoid vague statements like "government is better" — stick to the textbook reasoning.
• Roads, dams, and bridges are the textbook examples; use them directly.