What should be the effect of an increase in the costs


Problem

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 producing public good caused by government inefficiency? Would it make a difference if the increase in cost is a result of government paying above-marker wages (wages higher than those paid comparable 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 goods would increase?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What should be the effect of an increase in the costs
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