The provision of a public good that is complementary to leisure will:

Question

Quizplus · Accepted Answer

A public good that is complementary to leisure, such as a park or recreational facility, is likely to increase the utility of leisure time and therefore reduce work effort. This could result in a decrease in labor demand in the private sector if workers choose to work less or reduce their hours. However, it is not a necessary effect and could depend on the nature and scale of the public good. The provision of the public good would not necessarily affect the wage rates of government workers in any direction.

The Provision of a Public Good That Is Complementary to Leisure