Question

8. Agreement and disagreement among economists Suppose that Gilberto, an economist from an AM talk radio program, and Juanita, an economist from a public television program, are arguing over budget deficits. The following dialogue shows an excerpt from their debate: Juanita: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best course of action to remedy this situation. Gilberto: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits. Juanita: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively. The disagreement between these economists is most likely due to_differences in scientific judgments Despite their differences, with which proposition are two economists chosen at random most likely to agree? Tariffs and import quotas generally reduce economic welfare Minimum wage laws do more to harm low-skilled workers than help them Lawyers make up an excessive percentage of elected officials

Answer 1

The disagreement between these economists is most likely due to the differences in scientific judgements. G is an economist from a business school while J is an economist from a public television. The economist have different opinions due to the positive analysis. This disagreement does not involve value judgement because their judgement is based on the method to be used. Despite the differences, the two economists chosen at random most likely to agree with proposition that tariffs and import quotas generally reduce economic welfare. Hence option A is correct.