Suppose that Paolo, an economist from a research institute in Texas, and Sharon, an economist from a school of industrial relations, are arguing over saving incentives. The following dialogue shows an excerpt from their debate: Sharon: 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. Paolo: I think a switch from the income tax to a consumption tax would bring growth in living standards. Sharon: 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?
(i) Immigrants receive more in government benefits than they contribute in taxes.
(ii) Having a single income tax rate would improve economic performance.
(iii) Rent ceilings reduce the quantity and quality of available housing.

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

differences in scientific judgements

2. Despite their differences, the proposition that two economists chosen at random are most likely to agree is:

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

Explanation:

Economists disagree with one another due to differences in scientific judgments, differences in value judgments, or differences in perception over reality.  But the most prominent differences arise with the first and the second options. It is known that economists tend to disagree on all economic indices but agree on non-economic factors.  The disagreements arise out of three main factors: inadequate methods for economic evaluations, lack of empirical test, and individual values.  Methods used by economists to evaluate the truth are not always good enough to reveal the complete truth.

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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reducing the scale of the market for a new product.