My second post is up at Jesus Creed. Today we are looking at positive vs. normative economics. I invite you to Jesus Creed for that discussion.
Economics at the Jesus Creed: Michael Kruse 2
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5 responses to “Economics at the Jesus Creed: Michael Kruse 2”
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Good stuff – I’ll have to pickup Stapleford’s book and check it out.
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The word “want” is used several times inyour post. Is this being used as a technical term of economics or are you using it’s common meaning? If it is a tecnical term like “scarcity” with a specifics meaning for economists would you please define it?
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It is slippery isn’t it?
“Need” and “want” are used synonymously by economists because their impact in the market dynamics in motivating behavior is usually not differentiated.
I’m using “need” to define something that is essential toward some end, like staying alive.
I’m using “want” as desire for something that may or may not be essential.
I will need and want to eat at some point in the next few days if I’m to live.
I want a Big Mac but I don’t need one. -
And there was the abscence of the word “ought.” would this be a difference between normative and positive economics. Normative would make use of “ought” but Positivevwould not.
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Yes.
Positive = “is”
Negative = “ought”
Oversimplification but it makes the point.
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