Several Political Leaders Have Proposed That Parents Be Granted a Substantially

Multiple Choice

Several political leaders have proposed that parents be granted a substantially larger reduction in their annual personal income taxes for each child that they parent.The economic way of thinking indicates that legislation of this type would:

A) make it more expensive for parents to provide for their children.
B) reduce the value of children to their parents and therefore lead to a reduction in the birth rate.
C) reduce the after-tax cost of raising children and therefore increase the birth rate.
D) exert no impact on either the cost of raising children or the birth rate since parenting children is a non-economic activity.