Suppose the Government Grants Child Care Subsidies to Mothers Entering

question 161

Multiple Choice

Suppose the government grants child care subsidies to mothers entering the labour force.What is likely to happen to the equilibrium wage and quantity of labour?

• A)The equilibrium wage and the equilibrium quantity of labour rise.
• B)The equilibrium wage and the equilibrium quantity of labour fall.
• C)The equilibrium wage falls and the equilibrium quantity of labour rises.
• D)The equilibrium wage rises and the equilibrium quantity of labour falls.

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Definitions:

Allowable Contribution

The maximum amount that can legally be contributed to a particular savings account or investment vehicle, often pertaining to retirement accounts.

Term Life Insurance Policy

A life insurance policy that provides coverage at a fixed rate of payments for a limited period of time, the relevant term.

Insurance Increases

An increase in the cost of an insurance premium, typically due to factors like higher risk or inflation.

Investment Portion

The segment of an investment portfolio allocated to various investment vehicles according to a specific strategy.