Positive vs. Normative (efficiency): We have discussed the guaranty of free markets to arrive at an...

Positive vs. Normative (efficiency):

We have discussed the guaranty of free markets to arrive at an allocatively efficient production level where total economic surplus is maximized (positive analysis).

Economics however is a study of choice and trade off. This begs the normative question "Is efficiency the most important issue?"

Post what you think about efficiency vs. fairness or other trade offs related to efficiency Your post shoud be one comprehensive paragraph or more (comprehensive paragraph should be 4 - 5 sentences). After you have posted, read the postings of other students and reply to at least two of those postings.

Expert Solution

Most debatable question in economics is its concentration on efficiency rather than on fairness. Economics is always concerned about optimal allocation and production of resources . On the other hand fairness deals with distribution of resources throughout the society. Efficiency neglect the need of resources for future generation. Human welfare on the other hand is difficult to explain , whether to fulfill people's desire or happiness ? whether to focus on poorest and needy or value each people equally?

The concept of efficiency may lack fairness. There should be a balance of two. The allocation and production of resources should be such that they are efficiently utilize with providing maximum benefit to society and saving for future generation. Too much of focus on one aspect rather it be efficiency or fairness , it will be disadvantageous for the economy. Hence there should be balance of both.

Rahul Sunny answered 2 years ago

Problem 1 Positive vs. Normative Statements Classify the following statements as positive or normative. (a) When...

Problem 1 Positive vs. Normative Statements Classify the following statements as positive or normative. (a) When people must pay higher taxes on their wages, it reduces their incentive to work. (b) We should lower taxes to encourage people to work more. (c) The system of public education in this country generates greater benefits to society than the cost of running the system. (d) Workers in Asia often work in sweatshop conditions earning only pennies an hour. (e) American workers are...

POSITIVE VS. NORMATIVE ECONOMICS Instructions: Determine whether each of the following statements is representative of Positive...

POSITIVE VS. NORMATIVE ECONOMICS Instructions: Determine whether each of the following statements is representative of Positive or Normative Economics. Place a “P” on the lines next to all positive statements; place an “N” on the lines next to normative statements. 1. _____ The minimum wage should be raised to $15.00 an hour. 2. _____ If the minimum wage is increased, more people will become unemployed. 3. _____ There is too much crime in the U.S., something should be done about...

In this chapter, we have discussed how markets work. Recently some new markets have emerged that...

In this chapter, we have discussed how markets work. Recently some new markets have emerged that focus on sharing of durable goods among a wider circle of users. The rise of these sharing markets may well have an impact on the relationship between the economy and the environment. What are the market niches these firms have found? How is Airbnb different from Hilton? How is Uber different from Hertz or Yellow Cab? Is this a matter mainly of a different...

o Microeconomics vs macroeconomics o Real versus a nominal goods o Normative vs positive analysis o...

o Microeconomics vs macroeconomics o Real versus a nominal goods o Normative vs positive analysis o Theories and what makes them good/bad o Three assumptions about market participants o Making decisions with sunk costs o Production Possibilities Frontier (PPF)  What it represents  Opportunity costs and its effect on the shape of a PPF  Calculating opportunity cost across the curve

I have a question about gibbs free energy vs gibbs standard free energy. We know that...

I have a question about gibbs free energy vs gibbs standard free energy. We know that at equilibrium deltaG = 0 and Q = K, and deltaG standard is a non-zero value. But I don't understand. If I want to see if a reaction is at equilibrium then I have to calculate the deltaG standard first, before I can calculate deltaG to see if its value is 0 or not. And everytime I do that, the deltaG standard equals 0...

1. Explain what happens to the efficiency of free markets if: a) There is market power...

1. Explain what happens to the efficiency of free markets if: a) There is market power exercised by buyers or sellers. b) There are externalities 2. What is the relationship between a change in the size of a tax, and the change in the deadweight loss of the tax? 3. What is the best predictor of whether reducing a tax in a market will increase or decrease tax revenue? Explain.

When we conducted normative analyses of economic allocations through markets in our models, we often compared...

When we conducted normative analyses of economic allocations through markets in our models, we often compared their welfare outcomes against a benchmark of a Pareto efficient planner. Let's take the concept of our Modified Golden Rule for example. Which of these statements are most correct? There is a unique Pareto efficient planning problem. Hence it is a useful benchmark. The notion of Pareto efficiency is not free from subjective value judgments. There is an infinite set of possible Pareto planners...

2. Of the 4 markets discussed, which market structure can achieve allocative and productive efficiency in...

2. Of the 4 markets discussed, which market structure can achieve allocative and productive efficiency in the long run 3. Which market structure can have both homogeneous and differentiated products 4. Describe the characteristics of a pure monopoly 5. What are the benefits of monopolistic competition? 6. Please explain how shut-down rule is applied. 7. Discuss the major barriers to entry into an industry

1. We previously discussed the assumptions that define both competitive and monopoly markets. Which of the...

1. We previously discussed the assumptions that define both competitive and monopoly markets. Which of the following is/are assumptions that are present in competitive markets but not present in monopoly markets? a. Firms are profit maximizers b. Firms incur marginal costs c. Price equals marginal revenue d. Markets are efficient and maximize total surplus e. c and d are both correct 2. Suppose that the manufacture of widgets involves large economies of scale. In other words, as the scale of...

We have discussed several types of shoring. If we have a certain project, when should we...

We have discussed several types of shoring. If we have a certain project, when should we do the shoring using sheet piles, Contiguous Piles, Secant Piles, Soldier Beams and Lagging, or Diaphram Walls? Compare between these different types and list the criteria at which we choose the appropriate shoring system for any project.We have discussed several types of shoring. If we have a certain project, when should we do the shoring using sheet piles, Contiguous Piles, Secant Piles, Soldier Beams...

Question