Question

a) What is apriorism?

b) What is positivism?

c) Name at least three methodological disagreements between mainstream economics and Austrian economics

Answer 1

a.) Apriorism refers to innate knowledge that is, knowledge that is not gained by way of learning.

b.) Positivism in general, any system that confines itself to the data of experience and excludes a prior or metaphysical speculations.

The basic affirmations of positivism are:

(1) That all knowledge regarding matters of fact is based on the “positive” data of experience and

(2) That beyond the realm of fact is that of pure logic and pure mathematics.

c.) Disagreements:

1.  Austrians may consider mainstream treatments of time and uncertainty inadequate, but the literature is growing and if it is not taken into account, criticisms will, with some justification, be dismissed.

2. Austrians have never, it seems to mainstream economics, explained why models cannot be used for exploring the meaning, coherence and implications of concepts.

3. Anyone interested in market processes should be interested in understanding how individual markets work and hence in.

4. Arrow’s analysis of research and development expenditure.

5. General purpose technologies.

6. Real business cycle theory.