Several political leaders have proposed that parents be granted a substantially larger reduction in their annual personal income taxes for each child that they raise. 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.
c
Economics
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Indicate whether the statement is true or false
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