An Increase in the Daily Cost of Child Care Would

question 13

Multiple Choice

An increase in the daily cost of child care would likely

• A) increase the labor force participation rate of mothers.
• B) increase the utility from not working.
• C) increase the hours of work of mothers who continue to work.
• D) increase the utility of a family with young children.

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Definitions:

Purely Competitive Firm

A company operating in a market with many sellers offering identical products, where no single seller can influence the market price.

Downward-sloping

A description of a line or curve on a graph that represents a decrease in one variable in response to an increase in another variable, commonly used to describe demand curves in economics.

Demand Curve

A visual chart demonstrating the link between an item's price and the amount consumers are willing to buy at those prices.

Purely Competitive Industry

A market structure characterized by many sellers offering identical products, where no single seller can influence the market price.