Suppose That the Government Is Considering Whether to Implement a Child

question 11

Essay

Suppose that the government is considering whether to implement a child care subsidy program for low-income families.
(a)Is this child care subsidy different from a wage subsidy to low-income families with children? Assume that all low-income families with children use formal child care in order to work.Explain.
(b)Why might the government want to regulate the quality of the child care? What problems might such regulation cause? Explain.

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Definitions:

Value Judgments

Assessments or opinions made based on a set of criteria or moral standards rather than factual evidence alone.

Marginal Costs

The increase or decrease in the total costs incurred by producing one additional unit of a product or service.

Resources Scarcity

The economic problem of having seemingly unlimited human wants in a world of limited resources.

Consumer's Income

The total amount of earnings available to an individual or household to spend or save after taxes.