Learning Activity #8: Price Control Paper
Order Description
Objective 5: Analyze the concept of price and price controls and the interaction within the economy.
Price controls instituted by the government set price limits that sellers can ask for certain products. Price controls can set a legal maximum or minimum limit on the cost of a product. While price controls are often pushed for by the public, price controls have several negative impacts. First, price controls reduce gains made through trade. Secondly, price controls often result in unintended consequences through impact on related, but not directly affected, parts of the market.
Learning Activity #8: Price Control Paper
Watch the video:
Milton Friedman on the Failure of Wage and Price Controls
https://www.youtube.com/watch?v=FQtMpS6WNNo
Write a 2-3 page paper discussing the concept of price controls.
To achieve maximum points for content and analysis, the following elements need thoroughly addressed.
Consider Milton Friedman’s opinion on price controls.
Do price controls work in general?
Why has the U.S. government instituted price controls?
o Address the specific situation regarding Nixon and price controls.
o Have price control efforts in the U.S. been successful in general?
Provide at least three sources. Citations to the video, textbook, Bible, and dictionary should be provided on top of the required three sources. The Bible does not have to be listed in the References page, but does have to be cited in-text.
Use the Paper Writing rubric provided in the syllabus to ensure you have met all of the criteria.
