Reference no: EM133530443

Question: Suppose that Paolo, an economist from a consulting firm, and Sharon, another economist from a university in Florida, are both guests on a popular science podcast. The host of the podcast is facilitating their debate over saving incentives. The following dialogue represents a portion of the transcript of their discussion: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 (differences in scientific judgments, differences between perception versus reality, or differences in values).

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

Central banks should focus more on maintaining low unemployment than on maintaining low inflation.

Employers should not be restricted from outsourcing work to foreign nations.

Business managers can raise profit more easily by reducing costs than by raising revenue.