Suppose that Yakov, an economist from a research institute in Alberta, and Ana,

Question

Suppose that Yakov, an economist from a research institute in Alberta, and Ana, an economist from a public television program, are arguing over saving incentives. The following dialogue shows an excerpt from their debate: Ana: 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 the improvement of living standards. Yakov: I think a switch from the income tax to a consumption tax would bring growth in living standards. Ana: You really think households would change their saving behaviour enough in response to this to make a difference? Because I don't. The disagreement between these economists is most likely due to 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. O Tariffs and import quotas generally reduce economic welfare.

Explanation / Answer

1.If is a difference between perception versus reality.Their views are different but which view is correct can be found out only after economic analysis

Answer--differences in perception versus reality.

2.Minimum wage laws do more harm to low skilled workers.

This theory has been proven.Minimum wage laws creates excess supply if labour which causes unemployment,and low skilled workers are hurt the most.

Since,this is proved there can't be a difference of opinion.

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