Positive economics is the branch of economics that concerns the description and explanation of economic phenomena (Wong, 1987, p. Economics is the social science that studies the production distribution, and consumption of goods and services. 920). It focuses on facts and cause-and-effect relationships and includes the development and testing of economics theories. Economics is the social science that studies the production distribution, and consumption of goods and services. Earlier terms were value-free economics and its German counterpart wertfrei economics. The German language (de ''Deutsch'') is a West Germanic language and one of the world's major languages. These terms were challenged as persuasive rather than descriptive. A persuasive definition is a form of Definition which purports to describe the 'true' or 'commonly accepted' meaning of a term while in reality stipulating an uncommon or altered

Positive economics as science (Robbins, 1932) concerns analysis of economic behavior. Science (from the Latin scientia, meaning " Knowledge " or "knowing" is the effort to discover, and increase human understanding Lionel Robbins ' Essay (1932 1935 2nd ed 158 pp sought to define more precisely economics as a science and to coax substantive implications Behavior or behaviour (see spelling differences) refers to the actions or Reactions of an object or Organism, usually A standard theoretical statement of positive economics as operationally meaningful theorems is in Paul Samuelson (1947). Falsifiability (or "refutability" is the logical possibility that an assertion can be shown false by an observation or a physical experiment Paul Anthony Samuelson (born May 15, 1915) is an American neoclassical Economist known for his contributions to many fields of Foundations of Economic Analysis is a book by Paul A Samuelson published in 1947 (Enlarged ed Positive economics as such avoids economic value judgements. Value theory encompasses a range of approaches to understanding how why and to what degree humans should or do value things whether the thing is a person idea object or anything else For example, a positive economic theory might describe how money supply growth affects inflation, but it does not provide any instruction on what policy should be followed. The word theory has many distinct meanings in different fields of Knowledge, depending on their methodologies and the context of discussion. In Economics, money supply, or money stock, is the total amount of money available in an Economy at a particular point in time In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time A policy is a deliberate plan of action to guide decisions and achieve rational outcome(s

Still, positive economics is commonly deemed necessary for the ranking of economic policies or outcomes as to acceptability (Wong, 1987, p. 921), which is normative economics. Normative economics is the branch of Economics that incorporates value judgments (that is normative judgements about what the economy ought Positive economics is sometimes defined as the economics of "what is", whereas normative economics discusses "what ought to be". The distinction was exposited by John Neville Keynes (1891) and elaborated by Milton Friedman in an influential 1953 essay. John Neville Keynes ( 31 August 1852 - 15 November 1949) was a British Economist and father of John Maynard Keynes Milton Friedman (July 31 1912 November 16 2006 was an American Nobel Laureate Economist and Public intellectual. Milton Friedman 's book Essays in Positive Economics (1953 has as its lead an original essay "The Methodology of Positive Economics" on which this article focuses

The metholodogical basis for a positive/normative distinction has its roots in the fact-value distinction in philosophy, the principal proponents of such distinctions being David Hume and G. E. Moore. The fact-value distinction is a concept used to distinguish between arguments which can be claimed through Reason alone and those where rationality is limited to describing David Hume (26 April 1711 25 August 1776 Scottish Philosopher, Economist, and Historian is an important figure in Western philosophy "GE Moore" redirects here For the cofounder of Intel see Gordon Moore. The logical basis of such a relation as a dichotomy has been disputed in the philosophical literature. A dichotomy is any splitting of a whole into exactly two non-overlapping parts Such debates are reflected in discussion of positive science and specifically in economics, where critics, such as Gunnar Myrdal (1954) dispute the idea that economics can be completely neutral and agenda-free. In the Humanities and Social sciences, the term positive is used in a number of ways Karl Gunnar Myrdal (6 December 1898 – 17 May 1987 was a Swedish economist politician and Nobel laureate

See also

• Normative economics
• Philosophy of economics
• Consumer theory
• Production possibilities frontier
• Supply and demand
• Distribution (economics)
• Economic methodology
• Austrian School

References

• Milton Friedman (1953). Normative economics is the branch of Economics that incorporates value judgments (that is normative judgements about what the economy ought The philosophy of economics is the branch of Philosophy which studies philosophical issues relating to Economics. Consumer theory is a theory of Microeconomics that relates Preferences to consumer demand curves. In Economics, a production-possibility frontier (PPF or “transformation curve” is a graph that shows the different rates of production of two goods Supply and demand is an Economic model describing effects on price and quantity in a Market. Distribution in Economics refers to the way total output or income is distributed among individuals or among the Factors of production ( labor, land Economic methodology is the study of methods usually Scientific method, in relation to Economics (Boland 1987 p The Austrian School, also known as the “ Vienna School ” or the “ Psychological School ” is a heterodox school of economics that advocates "The Methodology of Positive Economics," Essays in Positive Economics
• Daniel M. Milton Friedman 's book Essays in Positive Economics (1953 has as its lead an original essay "The Methodology of Positive Economics" on which this article focuses Hausman and Michael S. McPherson (1996). Economic Analysis and Moral Philosophy, "Appendix: How could ethics matter to econonics?", pp. 211-20:

A. 2: Objection 2: Positive economics is value-free

A. 3: How positive economics involves morality

• John Neville Keynes (1891). The Scope and Method of Political Economy
• Richard G. Lipsey, (2008). Richard G Lipsey, OC PhD LLD FRSC (born August 28 1928) is a Canadian academic and Economist. "positive economics. " The New Palgrave Dictionary of Economics. The New Palgrave Dictionary of Economics, 2nd Edition is an eight-volume reference work published in May 2008 edited by Steven N Second Edition. Abstract.
• Gunnar Myrdal (1954 [1929]). The Political Element in the Development of Economic Theory, trans. Paul Streeten (Cambridge, MA: Harvard University Press).
• Lionel Robbins (1932). An Essay on the Nature and Significance of Economic Science
• Paul A. Lionel Robbins ' Essay (1932 1935 2nd ed 158 pp sought to define more precisely economics as a science and to coax substantive implications Samuelson (1947, Enlarged ed. 1983). Foundations of Economic Analysis
• Stanley Wong (1987). Foundations of Economic Analysis is a book by Paul A Samuelson published in 1947 (Enlarged ed “positive economics," The New Palgrave: A Dictionary of Economics, v. The New Palgrave A Dictionary of Economics (1987 is a 4-volume reference edited by John Eatwell, Murray Milgate and Peter Newman 3, pp. 920-21

External links

• Milton Friedman ([1953] 1966). "The Methodology of Positive Economics," excerpts from Friedman's essay

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