What is it called when individuals and businesses make decisions for private sector and government makes decisions for the public sector?

This concept is known as the division between the private sector and the public sector. In this framework, individuals and businesses operate within the private sector, making decisions based on market dynamics and profit motives, while the government is responsible for the public sector, making decisions aimed at serving the public interest and providing public goods and services. This delineation helps to balance economic efficiency with social welfare.