In each of the following circumstances, decide whether the impact of government on the economy increases or

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In each of the following circumstances, decide whether the impact of government on the economy increases or decreases and why. In each case, how does your answer compare to that given by standard measures of the size of government? 

a. Provincial governments mandate that employers provide daycare centres for the use of their employees.
b. Provincial governments subsidize daycare centres with parents paying $5 in user fees per day.
c. Provincial governments open government-run daycare centres.

d. The federal budget is brought into balance by reducing grants to provincial governments.

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Public Finance In Canada

ISBN: 9781259030772

5th Canadian Edition

Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon

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