Agreement and disagreement among economists Suppose that Yakov, an economist from a research institute in Texas, and Ana, an economist from a school of industrial relations, are arguing over health insurance. The following dialogue shows an excerpt from their debate:
Ana: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits.
Yakov: 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.
Ana: I disagree. I think government funding of health insurance is useful to ensure basic fairness. The disagreement between these economists is most likely due todifferences in values.
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.

Respuesta :

Answer: C. Rent ceilings reduce the quantity and quality of available housing.

Explanation:

Economists for all their differences will most likely agree that Rent Ceilings reduce the quality and quantity of available housing.

This is because it lowers the incentive for landlords to improve their housing if they know that they cannot charge enough to benefit from this improvement.

Landlords will also build lower quality housing or not go into housing construction at all because the rent ceiling might mean that they are not making enough return to pay for the construction of the house.