How might the majority voting model be used to explain the


How might the majority voting model be used to explain the growth of government expenditures? (a) Should changes in median or average income better explain increases in the demand for government services? (b) What should be the effect of an increase in the costs of production public good caused by government inefficiency? Would it make a difference if the increase in cost is a result of government paying above market wages (wages higher than those paid companies workers in the private sector)? (Does your answer to the last question depend on whether the median voter is a government employee?) (c) Why might you expect that if income per capita remains the same but the number of individuals in the economy increases, the demand for public good would increase?

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Business Economics: How might the majority voting model be used to explain the
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