Economic way of thinking

In addition to their Immediate effects secondary effects are effects of a policy change that might not be noticeable when the policy change Is Implemented 7. The value of a good or service Is subjective what one good Is worth to person A, may have a completely different value by person B (l Like pizza with extra cheese, I value It highly.You are allergic to dairy products, so you place a low value on a pizza with extra cheese) 8. The test of a theory Is Its ability to predict Positive and normative economics Positive economics – the study of â€Å"what Is† among economic relationships For Instance, positive statements can be statistically evaluated. Normative economics – Judgments about â€Å"what ought to be† In economic matters Normative statements merely reflect people's values – these statements cannot be proven true or false by economic thinking (think of It as a policeman's views on any matter – abortion, capital punishment, etc.Those p ollens cannot be proven right or wrong – they can merely be Judged) Economic way of thinking By gangplank 5. The acquisition of information is costly information can help people make better decisions, but information is a scarce good – the time it takes to search for the 6. Economic actions often generate secondary effects in addition to their immediate when the policy change is implemented 7. The value of a good or service is subjective what one good is worth to person A, may have a completely different value by person B (l like pizza with extra cheese, I alee it highly.You are allergic to dairy products, so you place a low value on a pizza with extra cheese) 8. The test of a theory is its ability to predict Positive economics – the study of â€Å"what is† among economic relationships For instance, positive statements can be statistically evaluated. Normative economics – judgments about â€Å"what ought to be† in economic matters proven tru e or false by economic thinking (think of it as a politician's views on any matter – abortion, capital punishment, etc. Those opinions cannot be proven right or