Goods which are underprovided by private sector businesses.
Public corporations previously part of the private sector which were taken into state ownership.
A situation where production costs will be lower if one firm is allowed to exist on its own in the industry, due to the existence of huge economies of scale.
The transfer of public sector resources to the private sector.
Private Finance Initiative (PFI)
A scheme where private business build hospitals and schools for example, funded by government.
Organizations set up by law to run services on behalf government.
Goods where consumption by one person does not reduce the amount available to others an, once provided, all individuals will benefit.
Business organizations which are owned or controlled by central or local government, or public corporations.
Quasi Autonomous Non-Governmental Organizations.
Structure of a business
The way in which a business is organized.
Basic economic problem
How scarce resources with different uses are allocated to satisfy wants.
Distribution of income
The amount of income and wealth different groups have in a particular country.
A system which attempts to solve the basic economic problem.
Market economy/Capitalist economy/Free enterprise economy
An economic system which allows the market mechanism to allocate resources.
Any factor which hinders the free operation of markets, such as where one form dominates resulting exploitation.
The benefit of the next best option foregone when making a choice between a number of alternatives.
Planned economy/Command economy
An economic system in which the state is responsible for resource allocation.