Minimum wages and rent controls are implemented in an attempt to help those of modest means. Explain the costs and benefits of such price controls. Suggest alternatives that you believe would be more appropriate and explain why. Take a position on whether or not you believe the government should get involved within markets to control prices. Provide a rationale for your response. Evaluate the reasons for differences in minimum wage rates across states. Explain why the rate in your state is different from others.

Minimum wages and rent controls are implemented in an attempt to help those of modest means. Explain the costs and benefits of such price controls. Suggest alternatives that you believe would be more appropriate and explain why. Take a position on whether or not you believe the government should get involved within markets to control prices. Provide a rationale for your response.

Evaluate the reasons for differences in minimum wage rates across states. Explain why the rate in your state is different from others.

 

answer:

The implimentation of price controls are charging minimum and maximum prices for some goods and services. This could be either price ceiling where it can not be increased upto certain bench mark like rent control or price flooring, where this can not decrease below certain fixed level like a minimum wage. The main problem with the price control is that there will be either shortage or over supply in the market. It may exacerbate problems rather than solveing these. The government may impose price controls to protect the consumers from exploitation. This ensures that goods and services are sold at a fair price in the market. On the other hand this lead to reducing the amount of trade and making waste resources in the economy. It also reduces the entry and investment in the long run. The price control can also reduce the quality of the goods.

As an alternative of price control the government can also impose the quantity control method. Such as it may limit the working hours. The government in the economy will only intervence in the market when it is necessary, in free market if the consumers are getting hurted due to high prices then price ceiling may solve this problem. It is using as a method to obtain a fair well being for those where were being exploited.

There are several factors for which the minimum wages differs from region to region. Thses are education, health, age, activities of present labor union and immobility of labor etc. If any region has higher potential workers in terms of experience, qualification and age then it is likely to differ wages with the other regions.

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