--%>
Assignment Help - homework help

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 : If resources were unlimited and freely

    Explain this statement:  “If resources were unlimited and freely available, there would be no subject called economics.”

    		•
  • Q : Major players in international trade

    Who are the major players in international trade today?  Besides Japan, what other Asian nations play significant roles in international trade?

    		•
  • Q : Free rider problem Question: Explain

    Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good. Answer:

    		•
  • Q : Cooperative and non-cooperative outcome

    Question: Cineplex and AMC are two rival movie theatre chains. They must each decide whether to set an admission price of $10 or set an admission price of $12; of course, the number of movie goers (and thus their r

    		•
  • Q : Risky forms of production to gain

    Entrepreneurs: (w) undertake risky forms of production to gain uncertain profits. (x) obtain interest payments for their services. (y) are usually overcompensated for their innovations. (z) receive virtually all their wealth by inheritance.

  • Q : What are the determinants of demand

    What are the determinants of demand?

    		•
  • Q : David Hume statement regarding money in

    In modern parlance, David Hume statement regarding money which is Tis none of the wheels of trade. And tis the oil, was referring to the notion that money: (i) is relatively costly to produce. (ii) facilitates divisions of labor and specialization and

    		•
  • Q : Examples and Applications of

    What are the Examples and Applications of International Trade?

    		•
  • Q : Larger amount is actually purchased at

    Critically evaluate:  “In comparing the two equilibrium positions, it note that a larger amount is actually purchased at a higher price. This disprove the law of demand.”

    		•
  • Q : High-convexity portfolios outperform

    a) Whether the bond market moves up or down, high-convexity portfolios will for all time outperform low-convexity portfolios of equal duration and yield." Elucidate the argument supporting this statement and the connection to the classical immunization strategy. What

    		•