Question

In Chapter 2 of his text, N.G. Mankiw reports that the primary reason why a politician will not follow the advice of an economist, is that presidents typically feel economists are mistaken and wrong.

True
False

Answer 1

False

Economics is considered as a social science but it does not have a lab like other sciences. Economics involves people, their psychology, and philosophy. Human behavior tends to be irrational which is influenced by their experiences and bounded rationality. So it is obviously possible that what an economist can conceptually or logically infers does not necessarily accepted by others. Politicians often have seen ignoring fundamental steps needed to uplift the economy and pushing through populist measures.

An economist could warn against fixing minimum wage in the labor market as it creates unemployment but politicians tend to push it pretending to be well-wishers of the people.