Certified Professional Public Buyer (CPPB) Practice Test

How can inter sector efficiency be determined?

1. By comparing public sector project timelines

2. By evaluating the benefits of government activities relative to the private sector

3. By analyzing staffing needs across sectors

4. By investigating supply chain logistics

The correct answer is: By evaluating the benefits of government activities relative to the private sector

Determining inter-sector efficiency primarily involves evaluating how effectively resources are utilized in different sectors, specifically comparing governmental functions to those in the private sector. By assessing the benefits generated by government activities in relation to similar private sector undertakings, one can identify discrepancies in resource allocation, productivity, or service delivery. This comparative analysis can reveal whether the public sector is achieving intended goals efficiently or whether improvements can be made by adopting practices from the private sector. Evaluating the benefits entails looking at outcomes such as economic impact, service levels, and customer satisfaction, which are critical to understanding overall efficiency. It can also indicate areas where the public sector might need to operate more like the private sector to enhance performance. Understanding these dynamics is essential for policy makers and public procurement professionals aiming to deliver effective and efficient services to the public.