Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 2 - Part I - Thinking Like an Economist - Questions for Review: 10

Answer

Economists tend to offer different opinions to policymakers based on two reasons. 1. Economists may disagree on positive theories of how the world works. 2. Economists may have different values that affect their normative views of how government policy should aim to affect the economy.

Work Step by Step

In general, the economy is very complex and can be viewed from many different viewpoints. Economists rely on many assumptions to understand the complex economy, and different assumptions will change how they view the economy. For example, some economists believe that higher income taxes would encourage households to save more and some economists believe that higher income taxes would not change household savings much. In general, economics is a young science, and economists still have many different views on how the economy works and how the government should intervene in the economy.
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