Saturday, August 28, 2010

Positive Economics

Note: I will separate each posts into an easy part and a hard part, indicated by a line.

The easy definition:

Okay, not really, but  that's definitely what Positive Economics is NOT supposed to be. Positive Economics is when statements can be proved or disproved using a scientific approach. This is what economists strive for. The opposite would be normative economics.

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 The nerd definition: A positive statement should be free from speculation and hinting of any kinds. This is based on facts that can be proved or disproved, i.e subjects that can be proved or disproved.

Economists try to confine their statements and questions to positive questions, things that can be verified. (This is why you see them arguing so much, since they believe they're stating positive statements to each other)

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