In Most States, There Is a Mandatory Maximum Number of Children

question 3

Multiple Choice

In most states, there is a mandatory maximum number of children allowed per day care worker. If this maximum number is binding, then if the wages of day care workers goes up, the main effect on day care employment will be through

• A) the scale effect.
• B) the substitution effect.
• C) it will be equally shared between the substitution and scale effect.
• D) neither the scale nor the substitution effect as labor demand will not change.

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Definitions:

Chapter 11 Bankruptcy

A form of bankruptcy involving the reorganization of a debtor's business affairs and assets, designed for corporations but also available to individuals.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Wrongful Discharge

Termination of an employee in a manner that breaches one or more terms of the contract of employment or a statute provision in employment law.