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.

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Definitions:

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated as the profit from an investment divided by the cost of the investment.

Investment Turnover

A measure of a company's efficiency in using its investments to generate sales revenue.

Profit Margin

A financial metric that measures the amount of net income generated as a percentage of revenues, indicating the efficiency of a company in turning sales into profits.

Over Budget

A situation where actual spending exceeds the planned or allocated budget for a project or operation.