Government Finance Statistics Manual 2014

20 Government Finance Statistics Manual 2014

are willing to supply and on the amounts purchasers

wish to buy. Th ese prices normally result when:

• Th e producer has an incentive to adjust supply ei-
  ther with the goal of making a profi t in the long run
  or, at a minimum, covering capital and other costs.
  
  
  • Consumers have the freedom to purchase or not
    purchase and make the choice on the basis of the
    prices charged.
    Th ese conditions usually mean that prices are eco-
    nomically signifi cant if sales cover the majority of the
  
  
  
  

Figure 2.3 The Public Sector and Its Main Components

(^1) Includes social security funds.
(^2) Alternatively, social security funds can be combined into a separate subsector, as shown in the box with dashed lines.
(^3) Budgetary units, extrabudgetary units, and social security funds may also exist in state and local governments.
Public Sector
State
Governments^1
Social Security
Funds^2
Public
Nonfinancial
Corporations
Public
Financial
Corporations
Central
Government^1
Budgetary
Extrabudgetary
Social Security
Funds
Other Public
Financial
Corporations
General
Government
Public
Corporations
Subsectors^3
Subsectors^3
Public Deposit-
Taking
Corporations Public Deposit-
Taking Corporations
except the
Central Bank
Central Bank
Local
Governments^1