Positive and Normative Analysis:
The positivistic methodology is concerned with describing how things are, which is called positive analysis. The question of how things ought to be is in the realm of normative analysis. If economics only concerned itself with how things are, it would be less interesting than it is. However, economists (even if they are sometimes very arrogant) have no business telling other people what should be done. This is not what normative economics does however; instead it tries to answer questions of the following sort: If society thinks that the current income distribution is too unequal and tries to rectify this by taxing the rich and giving the money to the poor, what consequences will this have for the behavior of rich and poor, and on market prices? In an effort to be as value-neutral as possible, economist have chosen to focus on the efficiency properties of various resources allocation mechanisms (such as markets, rationing, centralized allocation etc.) By efficiency economists means Pareto−efficiency, or sometimes we say Pareto-optimality. A situation (allocation) is said to be Pareto-optimal (or simply efficient) if there is no other way of distributing resources so that it is possible to make someone better off without making someone else worse off. This principle seems to be quite weak: If there are unused resources lying around, why should we not give them to someone who values them? We’re going to analyze in great length the behavior of individual consumers in a market system. After that we’ll analyze the efficiency properties of the market system. This will lead us to some important conclusions about the conditions under which this system leads to efficient allocations of resources. It will also identify situations then markets do not work well, and when government intervention is called for. It will also put some light on the role of the laws, and the legal system, in the market system. However, we’ll start by analyzing the behavior of individuals, in their role as consumers.
Latest technology based Economics Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Intermediate Microeconomics homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Intermediate Microeconomics, project ideas and tutorials. We provide email based Intermediate Microeconomics homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Intermediate Microeconomics. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics homework help and assignment help services. They use their experience, as they have solved thousands of the Economics assignments, which may help you to solve your complex issues of Intermediate Microeconomics. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!