ECN 109 Lecture Notes - Lecture 1: Mixed Economy, Full Employment, Deflation
Document Summary
Positive economics (analytical economics) deals with facts and direct observation. Normative economics (policy economics) - the branch that deals with value judgements rather than facts. Traditional economy: focuses on family needs, self sufficient, methods handed down, old fashioned, a lot of bartering, still exists in some rural parts of the world, examples include: the mongols of gobi. Desert, and the mbuti of the african rain forest. If you do bad you receive a punishment: this economy relies on reward and punishment for increased productivity, two best examples would be cuba and china. Mixed economy: markets and govt. interact as producers and consumers, so our country"s economy includes both privately owned and state owned enterprise, taxes often create desire to cheat eg. hidden economy. Communism: dictatorship govt, command economy, no freedom enterprise, emphasis on collective rather than self interest, no competition, examples china and n. korea.
