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Subject - Economics:

Microeconomics

MCQ - 20-4030

Question:

Suppose the county government sends each parent a coupon that can be used to subsidize the cost of sending each child to daycare. What would you expect to occur in the market for daycare services?

  1. The demand for daycare falls, lowering the market price.
  2. The demand for daycare rises, increasing the market price.
  3. The supply of daycare rises, lowering the market price.
  4. The demand for daycare rises, increasing the market price.
  5. A permanent shortage of daycare services exists.

Correct Answer: B

Explanation:

A subsidy given to consumers acts as an increase in income. Demand for daycare rises, raising the price of daycare.

Record Performance

269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: Suppose the county government sends each parent a coupon that can be used to subsidize the cost of sending each child to daycare. What would you expec .... aycare services? , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 20-4030.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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