Explore BrainMass

Government price controls

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

See attached.

Laws regarding price floors and ceilings; shortages and surpluses.

© BrainMass Inc. brainmass.com October 17, 2018, 3:11 am ad1c9bdddf


Solution Preview

1. There are federal and state laws setting minimum wages for workers. There are also city laws setting price ceilings for housing rents .
a. Why are there laws setting minimum wages for workers and maximum rents for housing?
These laws are attempts by the government to create a more equitable society, and of course some political gameplay is also at work. Renters and workers who benefit from these policies are voters, who will keep in office those who keep their rents low and wages high.
b. Why are there no laws setting maximum wages for workers or minimum rents for housing?
There is little to be gained by anyone from such laws. Workers would not gain, nor would renters, who want rents as low as possible. Society does not benefit by making rents high, as it would cause homelessness; low wages are also associated with social ills such as crime.
2. It has been stated that price controls cause ...

Solution Summary

Laws regarding price floors and ceilings; shortages and surpluses.

Similar Posting

Constraining Cost & Cost Control

1. Explain how each of the following groups addressed issues of cost control. Be sure to include a discussion of how technology has played, and will continue to play, a role in cost control. Secondly, write a brief evaluation of what you believe will be the long-term impact of these cost-control efforts.

*The United States Government

*The Commercial Insurance Industry

*Healthcare Providers

2.Three substantive reasons the federal government would focus on hospitals in an effort to constrain costs.

View Full Posting Details