Suppose that Rajiv, an economist from an AM talk radio program, and Simone, an economist from a public television program, are arguing over health insurance. The following dialogue shows an excerpt from their debate: Simone: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits.
Rajiv: I think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese.
Simone: I disagree. I think government funding of health insurance is useful to ensure basic fairness. The disagreement between these economists is most likely due to:

a. differences in values
b. differences in perception versus reality
c. differences in scientific judgments .

Despite their differences, with which proposition are two economists chosen at random most likely to agree

a. Immigrants receive more in government benefits than they contribute in taxes.
b. Having a single income tax rate would improve economic performance.
c. Rent ceilings reduce the quantity and quality of available housing.

1. a. differences in values

2. a.Immigrants receive more in government benefits than they contribute in taxes.

Explanation:

Economists do not always agree.  There are different methods that they employ to reach conclusions.  These methods are called economic theories, divided broadly in three: 1) the Keynesian, 2) the Friedmanite, and 3) the Fisherian Economic Theories.  They are always competing.  

Economic theory is an attempt to explain and interpret economic data, for example, to determine the causes and effects of economic events.

Keynesian economic theory developed by John Maynard Keynes, who advocated that the government should increase demand to boost growth.  Keynesians believe consumer demand is the primary driving force in an economy.  Keynesians, therefore, support the use of expansionary fiscal policies.

Friedmanite economic theory was the theory developed by economist Milton Friedman which posited that economic regulation should be through direct governmental manipulation of the money supply.

The Fisherian economic theory  developed by  Irving Fisher examines the link between the inflation rate, nominal interest rates, and real interest rates.  It is the theory of capital.

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