8. Agreement and disagreement among economists Suppose that Larry, an economist

Question

8. Agreement and disagreement among economists Suppose that Larry, an economist from a research institute in Texas, and Megan, an economist from a nonprofit organization on the West Coast, are arguing over saving incentives. The following dialogue shows an excerpt from their debate: Megan: I think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain an improvement in living standards Larry: I think a switch from the income tax to a consumption tax would bring growth in living standards. Megan: You really think households would change their saving behavior enough in response to this to make a difference? Because I don't. The disagreement between these economists is most likely due to differences in scientific udgments differences in values differences between perception versus reality differences in scientific judgments Despite their differences, with which proposition are two economis O Minimum wage laws do more to harm low-skilled worke O Lawyers make up an excessive percentage of elected ofnc O Tariffs and import quotas generally reduce economic welfare

Explanation / Answer

Ans

1 Difference in scientific judgements. Except in social welfare value judgements are hardly now used in economics

2 D is right. It's agreed upon by most economists

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