Problem:
One of the limiting resources in our economy is time. As a society, we make choices about the allocation of time between work and other pursuits. In the US, most workers are eligible for overtime pay if they work more than 40 hours a week, whereas most European workers become eligible at 35 hours per week. In addition, workers in Europe have guaranteed vacation time—five weeks in France—a benefit not available in the US. As a result, the typical US worker puts in about 2,000 hours per year compared to 1,700 hours per year in France and Germany.
Should US laws be changed to require a shorter work week and longer vacation time?
For each side of the question list three strong arguments. Use the following concepts from the chapter at least once.
- Production possibilities curve
- Economic growth
- Market mechanism
- Market failure