Question

8. Agreement and disagreement among economists Imagine that Kenji, an economist from a research institute in Melbourne, and Lucia, an economist from a nonprofit organisation in Western Australia, are arguing over budget deficits. The following dialogue shows an excerpt from their debate: Lucia: Most people recognise 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. Kenji: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits. Lucia: 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 judgements Despite their differences, with which proposition are two economists chosen at random most likely to agree? Having a single income tax rate would improve economic performance. Rent ceilings reduce the quantity and quality of available housing. Immigrants receive more in government benefits than they contribute in taxes.

Answer 1

differences in scientific judgements
(Their differences are due to their different scientific judgements.)

Rent ceilings reduce the quantity and quality of available housing.
(They will both agree on this because this is a well known fact.)