8. Agreement and disagreement among economists Suppose that Edison, an economist from a research institute in Texas, and Hilary, an economist from a nonprofit organization on the West Coast, are arguing over budget deficits. The following dialogue shows an excerpt from their debate: _ Hilary: 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. Edison: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits. Hilary: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively. _____ 1/The disagreement between these economists is most likely due to............................ a.differences in scientific judgments. b.differences between perception versus reality. c.differences in values 2/Despite their differences, with which proposition are two economists chosen at random most likely to agree? ( multiple choice) a. Immigrants receive more in government benefits than they contribute in taxes. b. Rent ceilings reduce the quantity and quality of available housing. c. Having a single income tax rate would improve economic performance.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 6PA

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8. Agreement and disagreement among economists

Suppose that Edison, an economist from a research institute in Texas, and Hilary, an economist from a nonprofit organization on the West Coast, are arguing over budget deficits. The following dialogue shows an excerpt from their debate:

___________________________________________________________________________

Hilary: 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.

Edison: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits.

Hilary: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively.

_______________________________________________________________________________

1/The disagreement between these economists is most likely due to............................

a.differences in scientific judgments.

b.differences between perception versus reality.

c.differences in values

2/Despite their differences, with which proposition are two economists chosen at random most likely to agree? ( multiple choice)

a. Immigrants receive more in government benefits than they contribute in taxes.

b. Rent ceilings reduce the quantity and quality of available housing.

c. Having a single income tax rate would improve economic performance.

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