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Suppose Day-Care Centers Charge by the Hour (With No Daily

question 10

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Suppose day-care centers charge by the hour (with no daily fixed costs) .The government then subsidizes day-care,cutting the hourly cost.Assume the income effect dominates the substitution effect for working mothers.The effect of the subsidy will be to ________ the labor force participation rate of parents with small children and to ________ the work hours of working parents with small children.


Definitions:

Parenting Role

The responsibilities and activities involved in raising and nurturing children, including providing for their physical, emotional, and intellectual development.

Joint Decisions

Decisions made collectively by two or more parties, often involving compromise or consensus.

Timing of Retirement

The timing of retirement refers to the specific age or circumstances under which an individual decides to leave the workforce and enter into retirement.

Anti-aging Products

Substances or cosmetic treatments designed to prevent or reduce the visible effects of aging on the skin, such as wrinkles and sagging.

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