The Following Table Shows the Marginal Private Benefits and Marginal

question 113

Multiple Choice

The following table shows the marginal private benefits and marginal private cost of providing daycare spaces in the province:

-Refer to the above information 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 quantity?

• A)3,000.
• B)5,000.
• C)7,000.
• D)8,000.
• E)9,000.

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Definitions:

Raw Materials

Basic materials extracted from natural resources or produced through agriculture, which are used in the production of goods and services.

Injection

Any spending other than by households or any income other than from resource earnings; includes investment, government purchases, exports, and transfer payments.

Circular Flow

An economic model that illustrates the continuous movement of goods, services, and money between producers and consumers in an economy.

Circular Flow Model

A diagram that illustrates the movement of goods, services, and money between households and businesses in the economy.