Principles of Economics ,,,,,,,,,,,,,,

Ten Propositions about Which Most Economists Agree

Proposition (and average of economists who agree)

1-A ceiling on rents reduces the quantity and quality of housing available. 93%
2-Tariffs and import quotas usually reduce general economic welfare. 93%
3-Flexible and floating exchange rates offer international monetary arrangement. 90%
4-Fiscal policy (e.g., tax cut and/or government expenditure increase) has a significant simulative impact on a less than fully employed. 90%
5-If the federal budget is to be balanced, it should be done over the business cycle rather than yearly. 85%
6-Cash payments increase the welfare of recipients to a greater degree than do transfers-in-kind of equal cash value. 84%
7-A large federal budget deficit has an adverse effect on the economy. 83%
8-A minimum wage increases unemployment among young and unskilled workers. 79%
9-The government should restructure the welfare system along the lines of a "negative income tax". 79%
10-Effluent taxes and marketable pollution permits represent a better approach to pollution control than imposition of pollution ceilings. 78%

We will come to discuss some of these propositions in a later stage

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