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

question 124

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 parents a subsidy of $150 for each child registered.What will be the new equilibrium fee?

• A)$350.
• B)$450.
• C)$500.
• D)$600.
• E)$650.

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Definitions:

Africa

The world's second-largest and second-most populous continent, rich in cultural and geographical diversity.

Disenfranchise Southern Blacks

Historical efforts and practices, especially post-U.S. Civil War, geared towards preventing African Americans in the Southern states from voting and exercising their full rights.

Mississippi

A state in the southern region of the United States, known for its rich history, especially regarding the Civil Rights Movement and profound cultural contributions like blues music.

Readjuster Party

A political movement in Virginia during the late 19th century, advocating for the reorganization of the state's debt and expanded funding for public services, including education for African Americans.