Prior to an Expanded Child Care Subsidy Program in Illinois

question 1

Multiple Choice

Prior to an expanded child care subsidy program in Illinois, the labor force participation rate of single mothers in Illinois was 45% and in Wisconsin was 48%. After Illinois expanded its child care subsidy program, the participation rate increased to 58% in Illinois and to 51% in Wisconsin. The expanded child care program in Illinois is estimated to increase labor force participation of single mothers by how much according to a difference-in-differences estimator?

• A) 3%
• B) 6%
• C) 7%
• D) 10%
• E) 13%

Understand the impact of foreign aid flow and its distribution among developing nations.

Understand the definition and characteristics of developing countries.

Identify and analyze the impact of direct foreign investment on economic growth in developing countries.

Evaluate the effectiveness of different types of foreign aid and development assistance policies.

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Definitions:

Total Revenue

The overall amount of money generated by a firm from selling its products or services, calculated as the quantity of goods sold multiplied by the price of the goods.

Perfectly Elastic

A situation where a small change in price leads to an infinite change in quantity demanded or supplied, depicted as a horizontal line on a graph.

Perfectly Inelastic

A situation in which the quantity demanded or supplied does not change regardless of changes in price.

Purely Competitive

A purely competitive market is characterized by many buyers and sellers, homogeneous products, and no single entity having market control, leading to price determination by supply and demand forces.