Unit 1 Assignment: Normative and Positive Economics Instructions: 1. Define Brie
ID: 1133096 • Letter: U
Question
Unit 1 Assignment: Normative and Positive Economics
Instructions:
1. Define
Briefly define the following two terms in your own words:
Positive economics
Normative economics
Each definition should be a minimum of one to two well developed paragraphs.
2. Explain
For the sake of argument (and this assignment) assume that global warming is a fact, caused by human activity, and that it can be fixed by taxing producers for the amount of carbon they release. The problem is that this tax would greatly increase costs for everyone. Using this scenario please answer the following questions:
How would this situation be described in terms of Positive economics?
How would this situation be described in terms of Normative economics?
Which of these do you think is the correct what to describe this situation?
Answer each of these 3 questions with at least 2 well developed paragraphs.
Please be sure to validate your opinions and ideas with citations and references in APA format – if applicable.
Create your work into a Microsoft Word document and submit it through the assignments tab.
Estimated time to complete: 6 hours
Explanation / Answer
Solution 1 :-
Positive Economics :- A positive economics is such which is a fact based and objective too. The results of the positive economics are tested means that are proved or disproved. This is that branchh of economics which is related to description and explanation of economic phenomen. It can avoid the judgements relaed to the economic values.The positive economics are tested as it is fact based the example of positive economics as The unemployment rate in India is higher then united states.
Normative Economics :- This Economics is just opposite to the Posiive economics As the normative economics is value based and it is also subjective.The statements of the normative economics are not tested these are just opinion based so they are not proved or disproved. This is the branch of economics that reflects ideologically prescriptive, judgments toward economic development, investment projects etc. the example of normative economics is Women should be provided higher school loans than men. etc.
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