An increase in the daily cost of child care would likely

Question

Quizplus · Accepted Answer

An increase in the daily cost of child care would make it more expensive for mothers to go to work. As a result, mothers who continue working will likely increase their hours of work to make up for the increased cost of child care and maintain their income level, hence choice C is correct. Choices A and B are incorrect since an increase in the cost of child care would discourage mothers from joining the labor force and reduce their utility from not working. Choice D is also incorrect since an increase in the cost of child care would reduce the utility of a family with young children by making child care more expensive.

An Increase in the Daily Cost of Child Care Would