Positive-Normative distinction

Type :

Term papers

Pages :

3 pages

Format :

.doc

Published date :

01/12/2009

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Summary :

 
 

Table of Contents Positive-Normative distinction Table of Contents

 
  1. Introduction.
  2. The distinction between positive and normative economics.
    1. Positive economics.
    2. Normative economics.
    3. The value-free.
    4. Economic examples.
  3. Criticisms.
  4. Conclusion.
  5. Bibliography.

Abstract

The methodology in economics is important because it gives us a better understanding of the economic analysis. The purpose of economic theory is to provide a comprehensive framework for the study of human behaviour declares Gary Becker (1976). As the aim of the economy for governments is to improve the social welfare, there are different means to reach this issue . The goal of welfare economics is to maximize "the sum of utilities of individuals whose preferences are normally represented as greedy and selfish". The distinction between positive and normative economics is not a recent question. positive economic relates rather about sciences. It explains the economic view from the facts, thus it wants to be objective with "declarative statements about the world".

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