Sometimes Economists Disagree Because Their Values Differ

question 3

Multiple Choice

Sometimes economists disagree because their values differ.Which of the following instances best reflects this source of disagreement?

• A)One economist believes the North American Free Trade Agreement (NAFTA)has led to a loss of American jobs;another economist disputes this claim.
• B)One economist believes that when income taxes are cut,people will increase their spending;another economist believes that when income taxes are cut,people will increase their saving.
• C)One economist advises against increases in sales taxes because she thinks such increases are unfair to low-income people;another economist disputes the idea that increases in sales taxes are unfair to low-income people.
• D)One economist believes that,prior to the Civil War,slavery contributed to economic growth in the South;another economist believes that slavery held back the South's economic growth.

---

Definitions:

Addition Rule

A method used in probability to determine the total probability of the occurrence of at least one of several events.

Deck of Cards

A standard set of 52 playing cards, used in various games, consisting of four suits: hearts, diamonds, clubs, and spades.

Addition Rule

In probability, a rule that calculates the likelihood of any of two or more mutually exclusive events occurring.

Automobile Accident

An unexpected event involving a vehicle that usually results in damage and/or injury.