Suppose That in an Effort to Help Single Parents,the Government

question 94

Multiple Choice

Suppose that in an effort to help single parents,the government has decided to pay part of the cost of childcare.This measure will

• A)increase efficiency in the childcare market.
• B)increase consumer surplus in the childcare market.
• C)increase total surplus in the childcare market.
• D)leave the quantity of childcare unchanged.

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Definitions:

Cost Centre

A segment of an organization where costs can be accumulated, but which does not directly generate revenue.

Standardised Services

Services that are provided in a consistent manner every time, ensuring uniform quality and experience across all service points.

Profit and Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal quarter or year.

Common Fixed Costs

Costs that do not vary with the level of output or sales, shared among products or departments.