Public Sector Economics Overview

What is the primary problem identified in the public sector operations concerning statistical measurement?

Which index showed the highest score in the Index of Economic Freedom for Spain in 2023?

What is indicated by Spain's score of 7.4 in Fiscal Health in 2023?

How does government spending in Spain in 2023 rank in terms of economic freedom?

Regarding the change in government expenditures, which measurement focuses on adjustments for inflation?

What categories fall under the general government sector?

According to the European System of Accounts, which of the following is not classified as an economic agent?

Which of the following best describes the term 'Public Sector (lato sensu)'?

What does the public sector in a strict sense encompass?

How are public owned non-financial enterprises characterized according to the content?

### Public Sector in Economics

The Public Sector is difficult to measure because many operations are non-monetary
The Public Sector is frequently measured by budgetary operations
The Public Sector is often measured by government expenditures, which include:
- Purchases of goods and services
- Transfers of income
- Interest Payments

### Public Sector in Spain

The Public Sector in Spain (stricto sensu) includes the General Government
The Public Sector in Spain (lato sensu) includes the General Government and Public Owned Enterprises
The General Government is subdivided into four subsectors:
- Central Government
- Regional Government
- Local Government
- Social Security Funds

### Challenges of the Public Sector in the 21st Century

Ageing Population:
- The proportion of the population over 60 will double by 2050 from 12% to 22%
- Low and middle-income countries will face a faster adjustment period than advanced economies
- The working-age population is declining, necessitating either higher taxation or expanding the definition of working age
Globalization:
- Increased competition from integrated global markets puts pressure on welfare states
- There is a risk of downward pressure on wages in advanced economies because of competition
Fiscal Sustainability:
- Public social spending is worth 21% of GDP on average in 2022 across OECD countries
- Spending levels differ greatly across countries
Proposed Solutions:
- Retirement ages
- Other solutions, such as tax increases, are not mentioned

This quiz covers the essential aspects of the public sector within economics, focusing on measurement challenges, specific structures in Spain, and contemporary issues such as the ageing population. Test your understanding of how public expenditures and government sectors are defined and measured.