Certified Professional Public Buyer (CPPB) Practice Test

What does inter sector efficiency assess?

1. Efficiency of private sector jobs compared to government roles

2. The benefits of a governmental activity versus private sector alternatives

3. Cost savings from avoiding government programs

4. The effectiveness of intergovernmental collaborations

The correct answer is: The benefits of a governmental activity versus private sector alternatives

The assessment of inter-sector efficiency focuses on comparing the benefits derived from government activities with those provided by alternatives in the private sector. This method of evaluation helps in understanding whether governmental actions deliver value that is equivalent to or superior to what could be obtained through private sector solutions. To assess inter-sector efficiency, one typically examines factors such as cost, quality, and accessibility of services. By analyzing these elements, one can determine if government provision of particular goods or services is more effective than private sector options, which can guide policymakers in making informed decisions about resource allocation and program implementation. This evaluation is critical because it informs stakeholders about the potential advantages or drawbacks of relying on public versus private entities while ensuring that public funds are utilized effectively. In contrast, other options, such as measuring cost savings from avoiding government programs or assessing efficiency among job types, do not address the comparative benefits of government versus private sector alternatives, which is the core focus of inter-sector efficiency.