Which of the following statements is agreed upon by all economists?

• A. The government should always intervene in markets to correct inequalities.
• B. An increase in the minimum wage will raise the incomes of some workers.
• C. Taxes should be lowered to maximize economic growth.
• D. Free markets always lead to fair outcomes.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand that economists often have differing opinions on policy prescriptions such as government intervention, taxes, and market fairness because these involve value judgments and empirical debates.
2. Step 2: Recognize that the statement 'An increase in the minimum wage will raise the incomes of some workers' is a positive statement about economic outcomes, which is generally agreed upon because raising the minimum wage directly increases pay for workers who keep their jobs at the new wage.
3. Step 3: Note that the other statements involve normative claims (what should happen) or assumptions about market outcomes that are not universally accepted among economists.
4. Step 4: Therefore, the statement about minimum wage increasing incomes for some workers is the one that all economists agree on, as it is a straightforward consequence of raising wages legally.
5. Step 5: Summarize that when evaluating statements, distinguish between positive economics (descriptive, testable claims) and normative economics (opinions or prescriptions), as consensus is more likely on positive statements.