Erma and Wayne Are Both Economists

Multiple Choice

Erma and Wayne are both economists.Erma thinks that taxing consumption,rather than income,would result in higher household saving because income that is saved would not be taxed.Wayne does not think that household saving would respond much to a change in the tax laws.In this example,Erma and Wayne

A) have different normative views about tax policy.
B) disagree about the validity of a positive theory.
C) must both be incorrect because economists always agree on policy issues.
D) None of the above is correct.