--%>
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 : In long-run equilibrium earning of zero

    When, in a perfectly competitive industry, where the market price facing a firm is above its average total cost on the output here marginal revenue equivalents marginal cost, in that

    		•
  • Q : Determine the lowest average wages

    Consider a huge group of identically smart and strong industrious workers. All else identical, Adam Smith would predict such that the lowest average wages would be earned through the workers who were in the work that: (1) had the leas

    		•
  • Q : What are the criteria of issuing stocks

    What are the criteria of issuing stocks or bonds?

    		•
  • Q : Explain the term leverages Briefly

    Briefly explain the term leverages?

    		•
  • Q : Gains from Exchange- Practice and

    When a world famous concert pianist is as well the world's fastest short order cook, he would most likely gain the most financially through devoting: (i) Full time to frying burgers (ii) Full time to piano practice and concerts. (iii) Half-time cooking and half-time p

    		•
  • Q : Garfield’s utility function Problem 2

    Problem 2 Consider Garfield's utility function given as U(x1, x2) = x1x2, wher

    		•
  • Q : Economic crisis situation in Europe

    Question: Describe the present economic crisis situation in Europe.   Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world i

    		•
  • Q : Sources of not tax revenue Provide some

    Provide some sources of not tax revenue? Answer: Escheat, income from public enterprises, special assessment, fees and fines and so on.

    		•
  • Q : Example of public goods Drinking at a

    Drinking at a public water fountain is: (w) a public good because anyone may drink from it. (x) results in a negative externality because others can’t drink from this at similar time. (y) a positive externality because you are benefiting by other’s provisi

    		•
  • Q : Illustrate Scarcity and choice of

    Illustrate Scarcity and choice of Economic Perspective?

    		•