--%>

Expansion of preschool programs for disadvantaged children

Use the circular flow model to confirm this assertion for an expansion of preschool programs for disadvantaged children?

E

Expert

Verified

This is shown as an increase in goods and services from government to households or as a decrease in net taxes, which is equivalent to an increase in transfer payments.  In either case, this is a redistribution of income or services in favor of the less well off.  As additional teachers are hired and paid, there will be an increase in resources paid by the government.

There will be some reallocation of resources from private enterprise to government and some decrease in unemployment, unless the economy is already at full employment.  In this case, there will some upward pressure on prices since, to the extent the program is a transfer payment, there will be no increase in production.

   Related Questions in Business Economics

  • Q : What will be produced in all economic

    What will be produced in all economic systems?

  • Q : Symptoms of governmental interference-

    Adam Smith and the “typical liberal” economists who followed within his footsteps viewed persistent monopolization and market power as: (1) ineffective and best regulated through government. (2) crucial in finding the rate of technological

  • Q : Utility with food coupons Question: In

    Question: In Vancouver the Salvation Army encourages people to make food voucher donations to panhandlers instead of simply giving them cash. You can buy a food voucher for $5 and give it to a panhandler who can use it to purchase food. The Sa

  • Q : Inefficiencies and inequities by

    An employer that exaggerates the safety of a position or the prospects for advancement to job applicants makes inefficiencies as well as arguable inequities due to: (1) signaling. (2) credentialism. (3) screening. (4) adverse selection. (5) a moral hazard.

  • Q : Illustrate the advantage of corporate

    Illustrate the advantage of corporate form of organization?

  • Q : Marginal rate of substitution Problem:

    Problem: Luke likes to consumer CDs (good1) and pizzas (good 2). His preference over both goods is given by the utility function U(x1; x2) = x21

  • Q : Initial systematic and popular

    The initial systematic and popular description of capitalism was explained in: (1) Sir Thomas Mun’s England’s Treasure by Foreign Trade. (2) Joseph A. Schumpeter’s Capitalism, Socialism, and Democracy. (3) John Maynard Keynes’

  • Q : Allocating resources and distribute

    The market system tends to mainly beneficial allocating resources and distributes goods while: (1) the distributions of wealth and resource ownership are extensively perceived as equitable. (2) markets are extremely competitive. (3) goods are rival an

  • Q : Describe World Trade Organization

    Describe World Trade Organization (WTO)?

  • Q : Which type of maximization required in

    Productive (technical) efficiency needs maximization of the: (i) opportunity cost of a specified value of output. (ii) resources used to produce a specified value of output. (iii) value of output produced for a given total cost. (iv) satisfaction atta