Solved

A Single Mother Is Currently Paying Childcare Cost of $10

Question 37

Multiple Choice

A single mother is currently paying childcare cost of $10 an hour and she works 8 hours a day.The government then provides "free" child care,raising the property tax on the mother's home by $80 a day.The effect of this event will be to


A) cause the mother to work less hours.
B) cause the mother to work the same hours.
C) cause the mother to work more hours.
D) cannot tell without knowing which effect dominates: the income or substitution effect.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents