Week 1 Flashcards
What is positive methodology
Positive is about what do economists really do. How do economics organize, what criteria are applied and what are the most significant tendencies in the development of current economics.
What is normative methodology
Is about what SHOULD economists do. What are the criteria of good science.
What does methodology focus on?
Not on the methods themself but on the framework of their application. its about critical reflection on economics itself.
Definition of economics by Adam Smith
Early definition: Science of wealth and the differentiation of the wealth of nations. Big proponent of Laisses faire, meaning leaving the economy alone.
Definition of economics by Jean-baptiste Say
Early definition: The science that treats the production, distribution and consumption of wealth
Definition of economics by Jean-baptiste Say
Early definition: The science that treats the production, distribution and consumption of wealth
Definition of economics by John Start Mill
Early definition: The science which traces the laws of such of the phenomena of society as arise from the combined operations of mankind for the production of wealth, in so far as those phenomena are not modified by the pursuit of any other object. He was about material wealth and real production. The economy of scale, opportunity cost and comparative advantage in trade
Definition of economics Alfred Marschall
Early definition: Made the shift from wealth to exchange. His definition is about the study of man. Its about the behaviour concerning the product but the human behaviour.
Definition of economics Lionel Robbins
Modern Definition: ): The science which studies human behaviour as a relationship between ends and scarce means which have alternatives uses. Verry broad and abstract. it emphasizes the approach and not the subject matter.
Definition of economics George Stigler
Modern definition: His definition leads to Paul Samuelson’s Definitions till used today. economics is the story of how people and society end up choosing, with or without the use of money, to employ scarce productive resources that could have alternative uses, to produce various commodities and distribute them for consumption, now or in the future, among various persons and groups in society. It analyez the costs and benefits of improving patterns of resource allocation.
