economy is a special sphere of public life.Man is not only involved in economic relations, but also seeks to understand their nature.Normative economics is the economic analysis includes judgments about necessary actions.This differs from a simple theorizing.
Economic theory is to study the interaction of people in the search for the most effective methods of use of industrial resources to meet the needs of individuals.Many methods of analysis contain positive (study of involuntary unemployment) and regulatory elements (methods of effective fiscal policy to reduce this unemployment).
Regulatory economy is the focus of economic science, which is based on a number of value judgments with respect to development objectives and policies, as well, a positive economy involves analysis of the facts on which the subsequently formulated the basic principles of conduct.
There are a number of methods of economic theory:
- Inductive - a method of reasoning that is based on the generalization of the facts;
- abstraction - a method of distraction from everything that does not fall under the phenomenon, on its basis receive such economic categories as "profit", "price", "product" (which together constitute the logical foundation of economic theory);
- deductive - a method of reasoning, in which hypotheses are tested by real facts;
- simulation - a simplified picture of reality.
positive economy - everything that happens in the present time and determines the standard that should be in the future, so the different hypotheses and conclusions on all the links in the systems.Certain regulatory complexity of the economy lies in the fact that to determine the most effective ways to achieve the standard (optimal economic status) economists need to come to one common opinion that most often it is very difficult.The main problem in making a single decision is that the development of economic systems - a multivariate process.
positive economy is not only an analysis of the effects of certain public policies and detailed description of all activities of the public sector, as well as all the forces carrying out its program.Out of economists beyond the analysis leading to a positive shift in the regulatory sphere of the economy, which is associated with the assessment of the success of the various programs and developing new strategies for meeting certain goals.Normative economics compares the extent to which various government programs meet the goals and objectives.
positive and normative economy complement each other.To correct judgments about the necessary measures to be taken by the state, be sure to know what the consequences will bring those or other actions.You also need the ability to accurately describe the alleged events that occur in the case of the introduction of any taxes or subsidies for certain industries.
debate about the degree of efficiency of the economy are considered positive economic theory, which is based only on facts and real dependence.Discussion justice Economics is part of normative economic theory that makes its judgment on the specific economic conditions and policies.It refers not only to the issue of equitable distribution of the product.Normative economics - is the science that gives value judgments about the main types of choices that makes the economic system.Regulatory problems always cover all the sides and aspects of the economy.
