8 Agreement and disagreement among economists Suppose that B

8. Agreement and disagreement among economists Suppose that Brian, an economist from a research institute in Texas, and Crystal, an economist from a school of industrial relations, are arguing over government bailouts. The following dialogue shows an excerpt from their debate: Crystal: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. Brian: Indeed, it\'s gotten crazy! A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. Crystal: I don\'t know about that. Without a bailout of severely distressed financial firms, the economy will experience a deep recession. The disagreement between these economists is most likely due to Despite their differences, with which proposition are two economists chosen at random most likely to agree? Business managers can raise profit more easily by reducing costs than by raising revenue. O Central banks should focus more on maintaining low unemployment than on maintaining low inflation Employers should not be restricted from outsourcing work to foreign nations

Solution

1) Solution: scientific judgements

Explanaton: The economists disagree due to diferences in scientific judgements, because they differ on the type of policy required for smooth running of an during a period of financial distress. On contrary, diferences in values occurs because of disparate beliefs on value judgements, such as fairness or equity

2) Solution: Employers should not be restricted from outsourcing work to foreign nations

Explanation: Two economists chosen at random are most likely to agree that employers will not be restricted from outsourcing work to foreign nations. The reason is that evidence displays that about 90% of economists agree with this proposition.