Question
Suppose that Carlos, an economist from a business school in Georgia, and Deborah, an economist from a university in Massachusetts, are arguing over government bailouts.
Suppose that Carlos, an economist from a business school in Georgia, and Deborah, an economist from a university in Massachusetts, are arguing over government bailouts. The following dialogue shows an excerpt from their debate:
Deborah: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days.
Carlos: Indeed, it's gotten crazy! A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets.
Deborah: I don't know about that. Without a bailout of severely distressed financial firms, the economy will experience a deep recession.
(Options are given in parenthesis below)
The last question I need is one of the options listed with a (-)
The disagreement between these economists is most likely due to (differences in values/differences between perception versus reality/differences in scientific judgements)
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
-Lawyers make up an excessive percentage of elected officials.
-Minimum wage laws do more to harm low-skilled workers than help them.
-Tariffs and import quotas generally reduce economic welfare.
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