A Partial Explanation of the Change in Public-Sector Employment Since

question 31

Multiple Choice

A partial explanation of the change in public-sector employment since 1950 is that:

• A)the demand for public-sector goods is price elastic-as their relative prices have fallen,more public goods have been demanded.
• B)the number or school-age children has declined which in turn has caused a marked decrease in the demand for public school teachers
• C)the demand for public-sector goods is income elastic-as society's real income has grown,more public goods have been demanded
• D)the federal government has been running larger budget deficits

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