8. Agreement and disagreement among economists Suppose that Edison, an economist from an AM talk radio program, and Hilary, an economist from a nonprofit organization on the West Coast, are arguing over saving incentives. The following dialogue shows an excerpt from their debate: Hilary: 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. Edison: I think a switch from the income tax to a consumption tax would bring growth in living standards. Hilary: 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 . Despite their differences, with which proposition are two economists chosen at random most likely to agree? Immigrants receive more in government benefits than they contribute in taxes. Rent ceilings reduce the quantity and quality of available housing. Having a single income tax rate would improve economic performance.\

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

2. Economists chosen at random are most likely to agree on:

Rent ceilings reduce the quantity and quality of available housing.

Explanation:

Economists, generally disagree with each other based on values and scientific judgements.  Economics is not an exact science.  It is a behavioral science, which studies how an economy manages its economic resources.  And there are two extreme economic philosophies: free enterprise, no government interventions and a combination of private and public sectors' role in the economy.  These philosophies shape how Economists value, decide, and interpret economic issues and data.

Two economists chosen at random are most likely to agree on non-economic issues, for example: Rent ceilings reduce the quantity and quality of available housing.  The only thing is that they may not agree on the amount of rent ceilings or even whether there should be rent ceilings or not.  But, once the issue is divergent from economics, like quantity and quality, they would tend to come to an agreement.

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