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In each of the following circumstances, decide whether the impact of government on the economy increases or decreases, and why? a, preventional governments mandate that employees provide daycare centers for the use of their employees.
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B, provincial government subsidized daycare centers with parents paying $5 in user fees per day.
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C, provincial governments open government run daycare centers.
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And d, the federal budget is brought into balance by reducing grants to preventional governments.
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So let's start with part a.
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So when preventional governments require employers to provide daycare centers to their employees, the government's economic impact growth.
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This is because relatively low proportion of all employees need daycare centers and therefore becomes a case of the majority subsidizing a product used by the minority.
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This would be against the principles of free market leading to an increase in government influence.
01:38
So part b, if the preventional government is subsidizing daycare, it implies that the government's expenditure on maintaining daycare centers has increased...
