Purchase Solution

Positive & Normative Economics and Market Efficiency Evolution

Not what you're looking for?

Ask Custom Question

1) What is the difference between positive and normative economics? Which is more prevalent in today's economies? Why? What role, if any, do ethics play in positive economics? What role do ethics play in normative economics?

2) Can market efficiency evolve on its own without government intervention? Why or why not? What role do ethics play in market efficiency?

3) If resources became freely available in unlimited quantities, would there still be a need for economics?

Purchase this Solution
Solution Summary

This explanation provides a detailed look at these facets of accounting ethics by looking at the individual vs the whole economy, government involvement in market evolution and what would happen under the hypothetical condition that resources were no longer limited or costly. 760 words with 1 reference.

Solution Preview

1) What is the difference between positive and normative economics? Which is more prevalent in today's economies? Why? What role, if any, do ethics play in positive economics? What role do ethics play in normative economics?

The difference between positive economics and normative economics is that positive economics is related to description and explanation of economic happenings. On the other hand normative economics is related to passing value judgments. The normative economics is related to passing judgments about what the economy should be rather than what the economy actually is. The normative economics gives opinions about what the ideal state of the economy should be. On the other hand, positive economics focuses on what the economy is now. The objective of positive economics is to understand the cause-and effect relationships and at the same time test the economics theories in real life (a).

What is more prevalent in today's life is positive economics. The reason is that it carries out meaningful analysis of economic behavior. Further, because of its descriptive nature, positive economics refrains from passing judgments on decisions and phenomena. Ethics plays an important role in positive economics. The descriptive role of ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
  • "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
  • "Thank you kindly sir. "
  • "Excellent and well explained. --Thank you kindly. "
  • "Awesome notes. I appreciate you."
  • "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

View More Free Quizzes
Related BrainMass Solutions

  • Ethics Case Study

    How are the concepts of positive and normative economics reflected in this context? How do market efficiency, economizing and the market system affect these ethical issues?

  • This posting addresses positive and normative economics.

    463362 Positive and Normative Economics What is the difference between positive and normative economics? Which is more prevalent in today's economies? Why? What role, if any, do ethics play in positive economics?

  • Difference Between Positive and Normative Economics

    392007 Difference Between Positive and Normative Economics What is the difference between positive and normative economics? Which is more prevalent in today's economies? Why? What role, if any, does ethics play in positive economics?

  • Normative vs Positive statements

    c) The best way out of the recession is through budget cuts and borrowing. For this question you will need to recall the distinction between normative and positive economics.

  • Normative and Positive Economics

    What comments, questions, or real-world examples of normative and positive economics do you have to share?

  • Managerial Economics Discussion Questions

    Discuss the following statement from the standpoints of both efficiency and equity: "Everyone in society should be guaranteed the best healthcare possible." 4. Classify the following statements as positive or normative. Explain. a.

  • Economics Definitions

    475450 Fundamental Economics Definitions Please provide the following definitions: - Trade-Offs - Prices and Markets - Theories and Models - Positive versus Normative Analysis - Competitive versus Noncompetitive Markets - Market Price - Market

  • This posting addresses positive and normative ethics.

    464563 Accounting Ethics and Positive and Normative Economics Consider the following statement for the role that ethics plays in both normative and positive economics.

  • Positive and normative economic decisions

    153565 Positive and normative economic decisions To what extent do you think normative economic analysis, as opposed to positive economic analysis, determines our nation's economic public policy decisions made by government? Why?

View More Related Solutions