Question

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

(A) Business managers can raise profit more easily by reducing costs than by raising revenue.
(B) Central banks should focus more on maintaining employment than on maintaining low inflation.
(C) Employers should not be restricted from outsourcing work to foreign nations.

Answer 1

Most economists agree that gains from trade and comparative advantage are beneficial, making the proposition regarding the lack of restriction on employers from outsourcing work to foreign nations the one they are most likely to agree upon.

Step-by-step explanation:

When considering the proposition with which two economists are most likely to agree, one must analyze common ground in economic thought and consensus on economic principles. Considering the options provided, a proposition related to the gains from trade and comparative advantage is where most economists tend to agree.

Many economists support the idea that the gains from trade overall benefit a nation and that restricting employers from outsourcing may not be the optimal policy. This is based on the economic principle of comparative advantage, where countries or entities benefit from specializing in the production of goods they can create more efficiently and trading for others. Outsourcing is often a manifestation of this principle, as firms seek to reduce costs and increase efficiency by moving production or services to where they can be carried out most effectively.

Therefore, of the propositions listed, economists chosen at random would most likely agree with the statement that employers should not be restricted from outsourcing work to foreign nations. This aligns with the consensus that the gains from trade typically outweigh the losses and that trade restrictions can ultimately harm the economy more than protect it.