Policy position by utilizing the examples, Macroeconomics

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While referring to the "EYE on YOUR LIFE" section on page 183 of the textbook, apply this concept to your life. Develop your own policy position on price floors and price ceilings. Discuss your policy position by utilizing the examples included in this section.

1. Price Ceilings: Establish and discuss your position on price ceilings as to whether you believe we should continue to have a zero price for using a freeway. Or should we have transponders mounted on the dashboards of vehicles, as practiced in Singapore, which clocks-up the costs for driving around the city. This technique may be a non-starter for you, although, could you imagine the result of such a technique? You may never be stuck in slow-moving traffic again.

2. Price Floors: Establish and discuss your position on price floors as to whether you believe we should continue to have Government regulated minimum wage law. Discuss how you may have encountered a price floor in the labor market when you wanted a job, for which you were willing and available to work, but unable to get hired. Would you have taken a job for a slightly lower wage if one had been available?


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