Suppose that Darnell, an economist from an AM talk radio program, and Eleanor, an economist from a school of industrial relations, are arguing over government bailouts. The following dialogue shows an excerpt from their debate:

Eleanor: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days.

Darnell: Indeed, it's gotten crazy! A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets.

Eleanor: I don't know about that. Without a bailout of severely distressed financial firms, the economy will experience a deep recession.

The disagreement between these economists is most likely due to (differences in scientific judgments / differences in perception versus reality / differences in values).

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

a. Business managers ought to be more concerned with minimizing costs than with maximizing profit.

b. Central banks should focus more on maintaining low unemployment than on maintaining low inflation.

c. Employers should not be restricted from outsourcing work to foreign nations.

a)

The disagreement between these economists is most likely due to differences in perception versus reality.

b)

b. Central banks should focus more on maintaining low unemployment than on maintaining low inflation.

Explanation:

a) This is because Darnell is talking from fact that free markets always regulate asset prices (which is one perception) and Eleanor does not know about it. Eleanor only knows (the other realistic effect) that without a bailout of severely distressed financial firms, the economy will experience a deep recession.

b) Two economists chosen at random will most likely agree that Central banks should focus more on maintaining low unemployment than on maintaining low inflation, because economically, high employment rate is a more sustainable solution to inflation.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.