09-05 Explain How Governments Try to Encourage Production of Goods

question 70

Multiple Choice

09-05 Explain how governments try to encourage production of goods and services;such as education;that carry external benefits.
09-18 Providing Subsidies
The following graph refers to a province's day care market which is in equilibrium:

-Refer to the above graph to answer this question.In an effort to increase the number of daycare spaces,suppose the authorities give daycare operators a subsidy of $150 for each child registered.What will be the new equilibrium fee?

• A)$350.
• B)$450.
• C)$500.
• D)$550.
• E)$650.

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Definitions:

Stockbroker

A professional who executes buy and sell orders for stocks and other securities on behalf of clients in exchange for a fee or commission.

Stress Level

This refers to the intensity of stress which is the physiological and psychological strain or tension a person feels in response to life's demands.

Primary Reinforcer

A stimulus that is inherently rewarding and satisfies a biological need, leading to an increase in the behavior that preceded it.

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer.