Suppose Two Economists Disagree About Whether a Particular Tax Cut

question 39

Multiple Choice

Suppose two economists disagree about whether a particular tax cut is a good policy. The economist supporting the cut believes that it will increase economic growth. The other economist opposes it because he thinks it will have no effect on growth. The source of their disagreement in this case is most likely due to different:

• A) value judgments.
• B) interpretations of empirical evidence.
• C) interpretation of Pareto optimality.
• D) levels of coldheartedness.

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Definitions:

Piaget's Theory

A theory of cognitive development that describes how children develop logical thinking and reasoning skills through four stages of development.

Cognitive Development

The mental process of growth and change in intellectual functioning, including learning, memory, problem-solving, and decision-making, throughout the lifespan.

Recent Research

This term refers to studies or scientific investigations that have been conducted in the near past and add to the current knowledge base.

Temperament

An individual’s behavioral style and characteristic way of responding.