Notice that the government will attract fewer fire fighters with a high market price of benches than with a low market price. In other words, when market prices are high, the number of people working for the government is low. When market prices fall, more public service jobs are taken to obtain the needed dollars. Figure 5 . Government spending includes the purchase of labor and park benches.
Government sets both the wage of a fire fighter and the price of a bench.
We have incorporated the purchase of another good by the government. The relationship between how much it pays and how much it gets continues to be inverse. The y-intercepts on all 3 graphs are the points where the government gets only benches and no fire fighters. The x-intercept is the point where the government only employs fire fighters and does not purchase any benches. Government spending includes the purchase of labor and park benches.