True or false? Explain your answer.

a. Policy choice A and policy choice B attempt to achieve the same social goal. Policy choice A, however, results in a much less efficient use of resources than policy choice B. Therefore, economists are more likely to agree on choosing policy choice B.

b. When two economists disagree on the desirability of a policy, it’s typically because one of them has made a mistake.

Any policy is framed to improve the welfare of the people. An inefficient allocation of resources may achieve the targeted social goal, but it is quite certain that welfare does not get maximized in such inefficient allocations.

So, when policy choice A and policy choice B attempt to achieve the same social goal, policy choice Auses less efficient ways than policy choice B.

The economists will be more likely to choose policy choice B as the resource allocation is more efficient in policy B.

While the appearance of disagreement among economists exceeds the reality, it remains true that economists often do disagree about important things.

Two economists might disagree on the desirability of a policy because they have used different models, that is, made different simplifying assumptions and thus arrived at different conclusions.

So due to different modelling, the two economists may find themselves on different sides of the issue.

The economists never disagree on the desirability of a policy because one of them has made a mistake.