Help on economics URGENT?

Question

Suppose that there is a social benefit (positive externality) incurred when children aged 2 to 4 are provided with good quality private daycare services run by caring, intelligent, trained professionals, as opposed to being subjected to poor-quality care or staying at home until they are school-aged. However, this positive externality occurs only after a 10- to 20-year lag, as the children who have been exposed to high-quality care go on to become more productive, more law-abiding, better-socialised, happier people once they become adults. What methods might the government employ to ensure that a socially efficient level of this service is provided for children?

Answer 1

If this fantasy daycare existed, people would flock to it.  There are numerous studies, however, that clearly show that nearly all children benefit from being at home or with a relative, compared to a stranger, even if the home is "less than ideal."

In the last part of your question you ask how the government can make this service efficient, when historically, efficiency and government are opposites in every country in the history of man.  The first thing you would have to do is invent an efficient form of Government.  Second, you would have to invent this "magically fantastic" daycare system.  Third, you would have to convince the average voter that this system good despite 5000 years of evidence to the contrary.

Good luck.  You have your work cut out for you.