Deborah: 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. Carlos: Based on a few studies I have seen, I believe that a cut in income tax rates of 5% would boost economic growth and raise tax revenue enough to reduce budget deficits. Deborah: I think cutting income tax rates would boost the economy as well, but how do we know that a 5% cut is big enough to stimulate the economy in this day and age? The studies I have seen suggest a more aggressive cut of 20% should be made to income taxes. The disagreement between these economists is most likely due to their dfiferences, with which proposition are two economis, imperfect information O Having a single income tax rate would improve economi Despite their differences, with which proposition are two economis st likely to agree? differences in values Immigrants receive more in government benefits than they contribute in taxes O Rent ceilings reduce the quantity and quality of available housing. Session Timeout
1) The disagreement between these economists is most likely due to
Solution: Difference in values
Explanation: The main two causes to disagree are a difference in values and a difference in scientific judgments. In current scenario, the economists are in disagreement due to differences in values as they disagree on the economic efficiency importance which is required for needy people through public policy. However there are differences in scientific judgments because of opinions in regard to the validity of competing theories
2) Despite their differences, with which proposition are two economists chosen at random most likely to agree?
Solution: Rent ceilings reduce the quantity and quality of available housing.
Explanation: It will be difficult to find an economist who both agrees with either of the propositions
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