Defines normative and positive economics

Defines normative and positive economics

Paper details:
1. Explain how/why neoclassical economics is a normative theory while behavioral economics is a positive theory.
2. Provides a business or policy example associated with each theory. The example must Cleary illustrate how the policy reflects the
appropriate theorical assumptions about decision making (transitivity, convexity, probability weighting and/or time inconsistency for behavioral)

 

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Normative and positive economics

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