Business, 12.02.2020 17:44 bigg3826

Suppose that Shen, an economist from an AM talk radio program, and Valerie, an economist from the University of Massachusetts, are arguing over government bailouts. The following dialogue shows an excerpt from their debate:

Valerie: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days.

Shen: Indeed, it's gotten crazy! A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets.

Valerie: 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:

1) Differences in perception versus reality

2) Differences in scientific judgements

3) differences in values

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

1) Rent ceilings reduce the quality and quantity of available housing.

2) Immigrants receive more in government benefits than they contribute in taxes.

3) Having a single income tax rate would improve economic performance.

Answers: 1

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Suppose that Shen, an economist from an AM talk radio program, and Valerie, an economist from the Un...

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