Question

Suppose that Musashi, an economist from an AM talk radio program, and Rina, an economist from a university in Massachusetts, are arguing over health insurance. The following dialogue shows an excerpt from their debate:

Rina: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits.

Musashi: I think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese.

Rina: I disagree. I think government funding of health insurance is useful to ensure basic fairness.

The disagreement between these economists is most likely due to:

A: Differences in scientific judgments

B: Differences in Values

C: Differences between perception VS. reality

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

A.Lawyers make up an excessive percentage of elected officials.

B. Minimum wage laws do more to harm low-skilled workers than help them.

C. Tariffs and import quotas generally reduce economic welfare.

Answer 1

Economists disagree due to

1. Difference in scientific judgments: When economists differ because they hold different normative views (what should be) and positive views ( what is).
2. Differences in values. Fairness is an integral part of values.
3. Perception versus reality. These differences arise because of the differences between what the economists think and what the policy makers think.

Suppose that Musashi, an economist from an AM talk radio program, and Rina, an economist from a university in Massachusetts, are arguing over health insurance. The following dialogue shows an excerpt from their debate:

Rina: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits.

Musashi: I think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese.

Rina: I disagree. I think government funding of health insurance is useful to ensure basic fairness.

The disagreement between these economists is most likely due to:

Answer is B. Dfferences in values. Both Musashi and Rina have different opinions about fairness.

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

Answer is C. Tariffs and import quotas generally reduce economic welfare.