Suppose that edison, an economist from an am talk radio program, and hilary, an economist from a public television program, are arguing over government bailouts. the following dialogue shows an excerpt from their debate: hilary: to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. edison: indeed, it's gotten crazy! a government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. hilary: 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:

1) differences in perception versus reality

2) differences in scientific judgements

3) differences in values

despite their differences, with which propositional two economists chosen at random most likely to agree?

1) rent ceilings reduce the quality and quantity of available housing.

2) immigrants receive more in government benefits than they contribute in taxes.

3) having a single income tax rate would improve economic performance.

Acoase solution to a problem of externality ensures that a socially efficient outcome is to

Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar.spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements.cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery.rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer.gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life.esquire company provides financial statements to external users every three years.