Question

Suppose that Brian, an economist from a business school in Georgia, and Crystal, an economist from a university in Massachusetts, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Crystal: The usefulness of government intervention in the economy is a long-standing issue that economists continue to debate.
Brian: I feel that government involvement in the economy should be reduced because government programs cause more harm than good.
Crystal: While I do agree that government programs can be inefficient, I really think they are necessary to help the less fortunate.

The disagreement between these economists is most likely due to?
A. Differences in values
B.Differences in scientific judgment
C.differences in perception versus reality

Despite their differences, with which proposition are two economists chosen at random most likely to agree?

A. Minimum wage laws do more to harm low-skilled workers than help them.
B.Tariffs and import quotas generally reduce economic welfare.
C.Lawyers make up an excessive percentage of elected officials.

Answer 1

For the first question, although Brian and Crystal are both economists, they still disagree. The disagreement between these economists is most likely due to A. Differences in values. It seems that Brian puts more importance on economic efficiency while Crystal deems government programs necessary to help the less fortunate.

For the second question, despite their differences, the two economists chosen at random would most likely to agree to the proposition B.Tariffs and import quotas generally reduce economic welfare. Tariffs are taxes placed on imported goods and services with the goal of restricting trade due to the resulting increase in price of these imported goods and services. This, in an economist's point of view generally reduces economic welfare.