Which of the following is a key difference between the economic activities of government and those of private firms? January 1, 2023 by admin Private firms face the constraint of scarcity;government does not. Government focuses primarily on equity;private firms focus only on efficiency. Private economic activities create externalities;government activities do not. Government has the legal right to force people to do things;private firms do not. See Answer Government has the legal right to force people to do things;private firms do not.