fbpx

Eco. 101 Online Quiz/Discussion (Understanding Normative&Positive Economics and Ceteris Paribus)

Eco. 101 Online Quiz/Discussion (Understanding Normative&Positive Economics and Ceteris Paribus)

1. It has been argued by many scholars and Economists that positive economics describes and explains various economic phenomena. Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments. In view of these assertions, clearly discuss and analyse the differences between between normative economics and positive economics.

2. Ceteris paribus is a Latin phrase that generally means “all other things being equal.” In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same. Against this backdrop, lucidly discuss and analyse the concept of Ceteris Paribus in Economics with practical examples.

Related Posts

Comments 800

  1. Avatar Arisa Victor Emmanuel says:

    NAME: Arisa Victor Emmanuel
    REG. NO.: 2021/246683
    DEPARTMENT: Economics

    DIFFERENCES BETWEEN POSITIVE AND NORMATIVE ECONOMICS
    Positive economics is an objective stream of economics that relies on facts or what is happening. This is unlike normative economics which is solely based on individual opinion and does not represent a general perspective of the economy in view, and as such is not concrete.
    Conclusions drawn from positive economic analysis can be tested and backed up by data and facts, but conclusions from normative economics is unverifiable.
    Positive economic theory does not provide advice or instruction whereas normative economics offers advice.
    Statements based on normative economics include value judgments or what should be in the future unlike positive economics which only states the present the status quo.
    Positive economics is key to investment decisions because it relies on hard facts. Conclusions drawn from positive economics analyses can be verified and supported by data. Positive economics is based on objective data rather than opinions and value judgments. For instance, we can use historical data to determine the relationship between interest rates and consumer behavior. But normative economics can be used for investment and to properly this investments.
    Positive economics can be refuted unlike normative economics which cannot be easily falsified or refuted because it is based on inference and emotions.
    Also positive economics is based on facts while normative economics is based on opinion.
    Normative economics can be biased and sentimental, unlike positive economics which can be proven using a thorough scientific process.
    Normative economics is subjective while positive economics is objective.
    There is no personal interpretation attached to positive economics, but normative economics is the outcome of personal interpretation and perspective.
    Positive economics is substantial, in the sense that it can be observed by mere insight into the economy, unlike normative economics which is personal and opinion-based.
    The facts and findings gotten from positive economics can be used in making economic investments, but normative economics stipulates how these investments can be done.
    Normative economics is directed towards values and judgments, while positive economics focuses towards cause and effect.
    Positive economics uses past records and history for its facts and analysis, whereas normative economics considers the present situations and conditions in making its judgments.
    In positive economics, predictions can be made using the statistics and facts derived from it, but normative economics renders possible outcomes of this investments by identifying peoples’ reactions based on individual preference.
    To the government, positive economics is beneficial and helps in economic planning using the facts and statistics gotten from it, while to firms and investors, normative economics is beneficial and helps in analyzing different individual customers reactions and choice of preferences.
    Positive economics focuses on “what is” while normative economics focuses on “what should be” or “what ought to be”.
    With normative economics, solutions to economic problem can be gotten, while positive economics gives a clear background of the economics situation itself.
    THE CONCEPT OF CETERIS PARIBUS
    IN ECONOMICS
    Ceteris paribus is a Latin word which means “all other things being equal”. It is an assumption-based statement which economists use in order to arrive at a particular solution. It holds other influencing factor constant while using a single variable factor to predict outcome.
    It is of course imaginary, since it is not likely possible to hold every other factor constant. But this is as a result of the unpredictable nature of human beings, which makes it quite difficult to arrive at a particular conclusion without tampering with other dependent variables.
    For example, the assumption that with a higher wage rate there will be an increase in labour supply, ceteris paribus. This statements actually overlooks the other dependent variables by holding them constant. Other dependent variables like the length of professional training in the field, which may even discourage prospective job seekers, also the riskiness of the job may also play a role in discouraging people from going into such occupation no matter the increase in wage rate and the integrity and reputation of such workers, of which if the societal image of such workers may be low, and as such no matter the increase in the wage rate, many people will still take the job.
    Ceteris paribus is tendency based and not absolute. So, it is theoretical.
    Ceteris paribus makes it possible to analyze different economics situations. For instance, it would be very difficult to analyze the effects of price on demand without holding so many other independent variables constant.
    Also the effects of price on supply will be very difficult to discover without the use of the ceteris paribus.
    Ceteris paribus is also key in testing variables by alternating between each single factor.
    It also makes Economics scientific, giving it a platform to be tested and proven using empirical evidence, as long as those procedures, conditions and variables are allowed to remain unchanged.
    Unfortunately, ceteris paribus overlooks other human nature and merely attempts to discard them by keeping it unchanged. This is unlikely, considering the dynamic nature of human.
    Ceteris paribus is not all-encompassing considering its attempt to render all other factors insignificant, thereby making them look simplistic.
    It may even attempt to make an impractical solution look practical even if in real life such situation is merely theoretical and not practical.
    It has also been used to bury so many important determining factors that needs to be attended to and analyzed. For instance, in the law of demand, where ceteris paribus is used, price of the goods is not the only factor that determines the quantity demanded. Other factors, like price of the other goods, taste and fashion, income, price expectations and so on also plays a vital role in determining the quantity demanded of a particular goods. But with the term ceteris paribus, such other independent variables seems to be considered not being influential. Thereby making the law assumption-based.
    Furthermore, it is very unlikely to figure out every dependent variable of a given situation, so, many unidentified, known and unknown variables are kept constant and unchanged.

  2. 1. Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be”. They are based on opinions or ethics what someone believes should be. Normative Economics is value judgement based. Most of the people think that the statements which are generally accepted are a fact but in reality they are valued.
    Positive economics is based on the other hand are testable, even if they may not necessarily be true. It is also known as Pure Economics or Descriptive Economics.
    Their differences include;
    a. Positive Economics is a science based on data and facts whereas Normative Economics is based on opinions, judgements and values.
    b. Positive Economics is descriptive while Normative Economics is prescriptive.
    c. Positive Economics explains ‘what is’ that is reality while Normative Economics explains’what should be’ that is, ideas.
    d. Normative Economics cannot be tested theoretically or in practice, but Positive Economics can be tested.
    e. Normative Economics provide solutions based on value while Positive Economics describe economic issues.
    f. Positive Economics presents actual data that is possible in the future, while Normative view presents statements that may or may not be possible in the future.

    2. Ceteris paribus is a Latin phrase that generally means “all other things being equal.” In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same. The Ceteris Paribus meaning in Economics is concerned more with the effect of one variable on another. Economics involves numerous fluctuations according to external influences, which makes the concept of Ceteris Paribus easier to craft laws.
    One example of Ceteris Paribus would be the Economic law of supply. According to this law, an increase in price results in an increase in quantity supplied when keeping other factors stable. In the laws of demand and supply, demand shows that “all things being equal” more goods tend to be purchased at lower prices or if demand for any given product exceeds it’s supply, prices will likely rise. It focuses on facts and behavioural relationships of cause and effect and includes the development and testing of Economic theories. Also growth of money supply influences inflation, but it does not guide what policy should be pursued.

  3. NAME: ODINAKA RUTH IJEOMA
    DEPARTMENT: NURSING SCIENCE
    REG NUMBER: 2021/244658
    EMAIL ADDRESS: IJEOMARUTH744@GMAIL.COM
    BLOG ADDRESS: https://ruerio.blogspot.com/?m=1
    1.
    Normative and Positive Economics
    The normative economist tries to determine the desirability-undesirability of various economic conditions, situations or programs by asking the question: “What ought to or should be/have been?” The positive economist asks: “What is/was/has been?”
    While positive economics gathers and analyzes real data – about things that happen or have happened – normative economics relies heavily on value judgments and theoretical scenarios that present subjective results, i.e. how things should be or should have been.
    Normative economics tells us what things would be like or would have been like if public policy were or had been Normative statements usually deliver an opinion on economic scenarios instead of providing an objective analysis that presents proven facts.
    Positive Economics
    Tells you how it is/was
    Normative Economics
    Tells you how it should/ought to be or should/ought to have been
    Whoever is using normative economics in an argument is usually trying to change economic policies or to influence the decision-making process of lawmakers or captains of industry. (Captains of industry are people who head large and influential companies).
    Constructiveness
    Normative economics can be extremely useful if it is used by people who are trying to generate new ideas from a series of perspectives – if they aim to trigger real improvements, and they understand the key components of economics and how wealth is created.
    However, it cannot ever become the only basis for making important decisions – decisions that affect whole countries, regions or the world – because it does not take an impartial/objective angle that concentrates on real cause-and-effects – in other words, facts.
    If normative economics is used purely to criticize a political party, government or policymaker – crying over spilled milk – its usefulness is zero; no good ever comes of this type of approach.
    Decision-makers tend to analyze the results of positive economic studies before making thir decisions. They will sometimes look at what is desirable (or not) for the people they represent. In such cases, normative economics will play a part when they decide on economic matters.
    Example of normative economics
    Imagine we are looking at scenarios in which the government reduced income taxes by 50%:
    – A Normative Economic Statement may include the following words:
    “The government should reduce income tax by 50%. It would help millions of people by increasing their disposable incomes.”
    – A Positive Economic Statement: may include these words:
    “While a 50% cut in income tax would help many workers and their families, current government budget constraints make that option both impossible and unfeasible.”
    The normative economic statement carries value judgments – it assumes that people’s disposable income levels must be raised.
    Normative economic statements are not tested – they are not proven by factual values or any cause and effect that has been legitimized.
    The vast majority of economists today concentrate on positive economic analysis – they use ‘what is’ or ‘what was/has been’ occurring in the economy as the basis for any forecasts.
    Positive and normative economics are often synthesized in the style of practical idealism. In this discipline, sometimes called the “art of economics,” positive economics is utilized as a practical tool for achieving normative objectives, which often involve policy changes or states of affairs.

    2

    Ceteris paribus

    Economists use ceteris paribus, a cause-and-effect economic analysis, to build and test economic models.Economics’ ceteris paribus conditions include:
    The number of consumers in the market
    Consumer tastes or preferences
    Prices of substitute goods
    Consumer price expectations
    Personal income Interpretation
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    The clause is often loosely translated as “holding all else constant.” It does not imply that no other things will in fact change; rather, it isolates the effect of one particular change. Holding all other things constant is directly analogous to using a partial derivative in calculus rather than a total derivative, and to running a regression containing multiple variables rather than just one in order to isolate the individual effect of one of the variables. Ceteris paribus is an extension of scientific modeling. The scientific method is built on identifying, isolating, and testing the impact of an independent variable on a dependent variable.
    One thing to note is that since economic variables can only be isolated in theory and not in practice, ceteris paribus can only ever highlight tendencies, not absolutes.
    One example of ceteris paribus would be the economic law of supply. According to this law, an increase in price results in an increase in quantity supplied, when keeping others factors constant or ceteris paribus.
    Using ceteris paribus, economists can focus solely on the two factors involved: price and supply. When producers are paid higher prices for a product, they will be willing to offer more of the product for sale by increasing production. While the real world is never as simple as this, the idea of ceteris paribus allows economists to look at the theoretical relationship between price and supply.
    Secondary example could be an explanation of the cost of eggs. In the real world, there’s a multitude of factors that would influence this cost, including the availability and health of chickens, the property values of farmland, the growing popularity of veganism reducing demand, or the level of currency inflation. To keep it simple and look solely at supply vs. cost, an economist could apply ceteris paribus. With all other factors constant, a reduction in the supply of egg-laying hens would cause egg prices to rise.
    Additional examples might include two-factor relationships between:
    *Currency supply and inflation
    *Interest rates and GDP
    *Minimumwage and unemployment
    *Rent control and housing supply

    Importance of ceteris paribus
    There are several benefits that help explain the importance of ceteris paribus in economics:
    They include:
    1.Offers a way to create a framework for testing economic models.
    2.Makes economic theories more scientific and less philosophical
    3.Allows economists to explore multiple variables through testing hypotheses
    Limitations:
    On the other hand, this concept does have its clear limitations. While ceteris paribus enhances modelling and theoretical thinking, it doesn’t always reflect real world fluctuations. This can reduce the accuracy of economic models. Some critics claim that ceteris paribus allows economists to block out real-world problems or the impact of human nature on economic activity.
    As we can see from the examples above, something as simple as the cost of eggs involves multiple factors which should be investigated in real-world modelling. However, it’s still important to understand ceteris paribus, which is used as the foundation of most economic laws.

  4. Avatar Nnoruka benedicta chinecherem says:

    Name : Nnoruka Benedicta Chinecherem
    Reg no: 2021/241348
    Class : Economics department

    Positive economics and normative economics are two standard branches of modern economics. Positive economics describes and explains various economic phenomena, while normative economics focuses on the value of economic fairness or what the economy should be.
    To put it simply, positive economics is called the “what is” branch of economics. Normative economics, on the other hand, is considered the branch of economics that tries to determine the desirability of different economic programs and conditions by asking what “should” or what “ought” to be.
    What is Positive Economics?
    Positive economics is a study of economics based on facts, is verifiable, and you can prove or disprove it. In addition, you can test statements of positive economics and find out whether they are true or false.
    Let’s say that we are talking about the market and price equilibrium. At a point, the equilibrium is what it is. When there’s no opinion on it, that statement will fall under this type of economics. That means it talks only about the descriptive options and statements, and it would not talk anything about the judgments or opinions offered by people (or experts).
    Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economic theories.
    Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. These statements can be measured against tangible evidence or historical instances. There are no instances of approval-disapproval in positive economics.
    Positive Economics Statement Examples
    You would agree that economics is not an easy subject to handle without examples. In this section, we will take some examples of positive economics and explain why we call them positive economics statements.
    Statement 1
    The law of demand
    – “If other factors remain constant, if price rises, demand declines; and if price decreases, demand inclines.”This is the law of demand. It is a positive economic statement because demand will rise or fall if prices fall or rise in inverse proportion; when other factors remain constant. However, it is not an opinion. It is not a value-based description of what could be. It is not even a judgment of an expert stating about the price and demand. Rather, it is a descriptive statement that can be tested or verified and can be true or false.
    But if it can be true or false, why do we need these sorts of statements? The reason is we need facts before we opine. It is important to know “what is” before we reach the point of “what ought to be.”
    Statement 2
    Income isn’t equal in all countries.
    This statement again doesn’t tell whether it’s true or false. It’s also not the opinion of an economist or an expert. Rather it simply is. In some countries, this statement may not be true. But since there is a huge gap between rich and poor and as the middle class is quickly evaporating, we can state this.
    This is a positive economic statement because we would be able to verify it by looking at the statistics of various countries. If we see that most countries suffer from the extreme upper and lower limit in wealth, this statement will certainly become the truth. Otherwise, we will call it false.
    Statement 3
    When the Government levies more taxes on tobacco, people started smoking less.
    Ask any addicted smoker, and you would see that this statement isn’t true at all, and that’s why it’s a positive economic statement. Usually, when the government levies huge taxes on tobacco, people stop/reduce smoking. So it’s, it’s not an opinion since it is a fact (or opposite of fact). As a result, we can verify by looking at the various statistics.
    Here’s an example of a positive economic statement: “Government-provided healthcare increases public expenditures.” This statement is fact-based and has no value judgment attached to it. Its validity can be proven (or disproven) by studying healthcare spending where governments provide healthcare.
    “Positive economics was popularized by the economist Milton Friedman, who said that economic science should objectively analyze data without any bias or agenda”.
    NORMATIVE ECONOMICS
    Normative economics focuses on value-based judgments aimed at improving economic development, investment projects, and the distribution of wealth. Its goal is to summarize the desirability (or lack thereof) of various economic developments, situations, and programs by asking what should happen or what ought to be.
    Normative economics is subjective and value-based, originating from personal perspectives or opinions involved in the decision-making process. The statements of this type of economics are rigid and prescriptive in nature. They often sound political, which is why this economic branch is also called “what should be” or “what ought to be” economics.
    An example of a normative economic statement is: “The government should provide basic healthcare to all citizens.” As you can deduce from this statement, it is value-based, rooted in personal perspective, and satisfies the requirement of what “should” be.
    One of the most famous normative economists is Amartya Sen, a Nobel prize winner who devoted his career to studying development economics.
    What Is an Example of Normative Economics?
    Any economic agenda that promotes some sort of social or policy agenda could be said to be normative. For instance, arguing for a higher minimum wage for the benefit of workers would be an example of a normative argument, in that this argument is based on subjective values. However, an assertion that higher minimum wages would lead to a higher GDP would be considered positive economics.
    CONCLUSION
    Common observations indicate that discussions around public policies typically involve normative economic statements. A higher degree of disagreement persists in such discussions because neither party can clearly prove their correctness.
    Though normative statements are generalized and subjective in nature, they act as the necessary channels for out-of-the-box thinking. Such opinions can form the foundation for any necessary changes that may have the potential to completely transform a particular project.
    But normative economics cannot be the sole basis for decision-making on key economic fronts. Positive economics fills in for the objective angle that focuses on facts and cause-and-effect. Coupled with positive economics, normative economics may be useful in establishing, generating, and fulfilling new ideas and theories for different economic goals and perspectives.
    KEY TAKEAWAYS
    Positive economics describes and explains various economic phenomena.
    Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.”
    While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.
    Most public policy is based on a combination of both positive and normative economics.
    positive statement is one that can establish hypotheses that can be empirically tested. In contrast, a normative statement is instead based on opinion or subjective values.
    Both types have their place, and on their own both also have flaws. Integrating positive and normative economic statements together is often required in order to create the policies of a country, region, industrial sector, institution, or business.
    2.
    CONCEPT OF CENTERIS PARIBUS
    Definition of Ceteris Paribus
    To understand the law of demand, the law of supply, and many other important economic concepts, it’s important that you first understand the term ceteris paribus. Ceteris paribus is the commonly used Latin phrase meaning ‘all other things remaining constant.’ When using ceteris paribus in economics, it is often safe to assume that all other variables, except those under immediate consideration, are held constant
    Importance of Center is Paribus on Economic
    The concept of ceteris paribus is important in economics because, in the real world, it’s usually hard to isolate all the different variables that may influence or change the outcome of what you are studying and how an individual might make a decision. It’s used in economics to rule out the possibility of other factors changing, which may have an impact on the outcome or decision-making process of individuals.
    For example, in economics, we may say that an increase in the price of beef will decrease the quantity demanded for beef. We often add the phrase or assume, ‘all else constant,’ at the end. Why, you might ask? We know from the law of demand that if the price of beef goes up, less beef will be demanded, all else constant. Now assume we take away the phrase, ‘all else constant.’ It now becomes extremely difficult to study the relationship between price and quantity demanded. We open up the entire world to known and unknown factors that may also affect the demand for beef.
    What if the price of pork or chicken went down? Would some people buy less beef and substitute more pork and chicken? Certainly. What if a new study came out linking red meat to high rates of cancer or diabetes? Could that alone affect the demand for beef? Certainly. How about if the beef industry simply increased advertisements about the benefits of eating red meat? Could a large population increase affect the price and demand for beef? Again, the answers are: certainly!
    I give you all of those other possibilities to show you that if you don’t include or assume the phrase, ‘all else constant,’ in economics, it can be almost impossible to identify the true effect of one variable on another. Or, in this case, the simple relationship between a price change for beef and the corresponding change in quantity demanded for beef.
    In the real world, it may be a combination of several things affecting the demand for beef. But to understand the influence of each one of those factors on price or quantity demanded, we must ignore all the other possibilities. It’s only then that we can see how each variable affects the other without interference of other outside forces.
    Examples of Ceteris Paribus
    Let us see few examples of the application of Ceteris Paribus.
    The price of meat may rise if more people are willing to purchase it. In turn, the producers may sell it for a lower price if fewer people want it. But prices of meat may also fall if we assume that the price of land to raise chickens also drops.
    It makes it difficult to assume that it was only the demand that caused the price change. However, if other variables are kept constant under the ceteris paribus assumption, it is simpler to describe the relationship between only the price and demand. The variables include the prices of similar goods, production costs, and labour costs.
    Another example of its application is that ceteris paribus is often used when making arguments about a cause and its effect. An economist might claim that increasing the minimum wage will, in turn, increase unemployment. It will cause a rise in the supply of money, causing inflation. In turn, it reduces the marginal costs that boost economic profits for a company.
    Conclusion
    Ceteris paribus is also used in other areas, such as psychology and biology. These fields have ceteris paribus rule that is assumed to be true only under normal circumstances.

  5. Avatar Chekwube festus joshua says:

    Name :chekwube festus Joshua
    Department:economics
    Reg no:2021/241952

    1.Positive and Normative Reasoning:
    1) Positive Reasoning:
    This is concerned with describing and analysing the way things are or will be if certain conditions exist. For instance, the statement, “an increase in the demand for a commodity will cause its price to increase when other factors influencing demand and supply remain unchanged”, is a statement in positive economics. In other words, positive economics is an objective science which provides explanations of the working of the economic system.

    2) Normative Reasoning:
    This, on the other hand, is concerned with what ought to be, particularly how problems should be solved. It is a subjective science that deals with those areas of human economic behaviour in which personal value judgements are made. Normative economics gives rise to statements such as, “money supply should be reduced to lower inflation rate in the economy.”

    2.ceteris paribus
    Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”

    A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect. An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one

  6. Avatar Chukwu Precious Ada says:

    Name: Chukwu Precious Ada
    Reg number: 2018/244278
    Department: Economics Education

    Clearly discuss and analyse the differences between between normative economics and positive economics.

    POSITIVE ECONOMICS
    Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economic theories.
    Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. These statements can be measured against tangible evidence or historical instances. There are no instances of approval-disapproval in positive economics. Here’s an example of a positive economic statement: “Government-provided healthcare increases public expenditures.” This statement is fact-based and has no value judgment attached to it. Its validity can be proven (or disproven) by studying healthcare spending where governments provide healthcare.

    Normative Economics
    Normative economics focuses on value-based judgments aimed at improving economic development, investment projects, and the distribution of wealth. Its goal is to summarize the desirability (or lack thereof) of various economic developments, situations, and programs by asking what should happen or what ought to be.

    Normative economics is subjective and value-based, originating from personal perspectives or opinions involved in the decision-making process. The statements of this type of economics are rigid and prescriptive in nature. They often sound political, which is why this economic branch is also called “what should be” or “what ought to be” economics.

    An example of a normative economic statement is: “The government should provide basic healthcare to all citizens.” As you can deduce from this statement, it is value-based, rooted in personal perspective, and satisfies the requirement of what “should” be.

    * Positive economics describes and explains various economic phenomena.
    * Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.”
    * While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.

    lucidly discuss and analyse the concept of Ceteris Paribus in Economics with practical examples.

    CENTERIS PARIBUS:
Centeris paribus is a Latin word used in economics meaning “all things being equal”. It is important in economics because in the real world, it is used to rule out the possibility of other factors that changes, which may influence the outcome of individuals.
EXAMPLES: let’s assume that the increase in the price of Nivea body cream will decrease the quantity demanded of the body cream, we often add the phrase ” all things being equal ” why? because it makes it easier for us to study the relationship between the price and the quantity demanded.

    Another example is when an economist wants to study the impact of a change in the interest rate on investment. To do this, economists would hold other factors that influence investment constant such as tax rates, government spending, and regulation. By doing this, economists can estimate the effect of interest rate on investment.
    It’s worth mentioning that the concept of ceteris paribus is not always easy to apply in practice, since it can be difficult to hold all other variables constant. Additionally, in real-world situations, changes in one variable often lead to changes in other variables, making it difficult to isolate the impact of a single change. Despite these challenges, the concept of ceteris paribus is an important tool for economists, as it allows them to simplify complex real-world situations and gain a better understanding of the forces at play.

  7. Avatar UMEHNWAFOR CHINALU CHIDALU says:

    NAME: UMEHNWAFOR CHINALU CHIDALU
    REGISTRATION NUMBER: 2021/247834
    FACULTY: HEALTH SCIENCE AND TECHNOLOGY
    DEPARTMENT: NURSING SCIENCES.
    ASSIGNMENT ON ECO 101

    (1).DIFFERENCES BETWEEN NORMATIVE ECONOMICS AND POSITIVE ECONOMICS.
    a).Positive Economics
    Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economic theories.
    Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. These statements can be measured against tangible evidence or historical instances. There are no instances of approval-disapproval in positive economics.
    Here’s an example of a positive economic statement: “Government-provided healthcare increases public expenditures.” This statement is fact-based and has no value judgment attached to it. Its validity can be proven (or disproven) by studying healthcare spending where governments provide healthcare.
    b). Normative Economics
    Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgements toward economic development, investment projects, statements, and scenarios.
    Normative economics heavily concerns itself with value judgments and statements of “what ought to be” rather than facts based on cause _ and_ effects statements.
    In summary, the main difference between normative economics and positive economics is that normative economics is based on opinion and value judgments, while positive economics is based on facts and evidence.

    (2).. CONCEPT OF CETERIS PARIBUS IN ECONOMICS WITH PRACTICAL EXAMPLES.
    Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”
    In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect. An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one.
    Examples:
    Suppose that you wanted to explain the price of milk. With a little thought, it becomes apparent that milk costs are influenced by numerous things: the availability of cows, their health, the costs of feeding cows, the amount of useful land, the costs of possible milk substitutes, the number of milk suppliers, the level of inflation in the economy, consumer preferences, transportation, and many other variables. So an economist instead applies ceteris paribus, which essentially says if all other factors remain constant, a reduction in the supply of milk-producing cows, for example, causes the price of milk to rise.

  8. Avatar Nzenwa Ngozi Beatrice says:

    Name: Nzenwa Ngozi Beatrice
    Reg No: 2018/249548
    Department: Social Science Education
    Unit: Economics and Education
    Email: paulbeatrice3417@gmail.com

    1. Differences between normative economics and positive economics
    Positive economics and normative economics are two branches of economics that differ in their approach to analyzing economic phenomena. Positive economics is the study of what is or what has been, while normative economics is the study of what ought to be. Positive economics aims to describe and explain economic phenomena in a factual and objective manner. It uses empirical evidence to make verifiable predictions and testable hypotheses. In contrast, normative economics aims to evaluate economic outcomes in terms of moral values and principles. It involves making value judgments and subjective opinions about how things should be.

    Positive economics is descriptive and objective, while normative economics is prescriptive and subjective. Positive economics does not prescribe any particular policy or action, whereas normative economics seeks to prescribe policy recommendations based on normative principles. Positive economics can be evaluated based on its accuracy and predictive power, whereas normative economics can be evaluated based on the normative principles it espouses.

    For example, a positive economic statement would be: “Increasing the minimum wage will cause some businesses to hire fewer workers.” This statement is objective and can be tested through empirical observation. A normative economic statement, on the other hand, would be: “The minimum wage should be increased to provide a living wage for all workers.” This statement is subjective and based on a value judgment about what constitutes a living wage.

    In conclusion, positive economics and normative economics are two different approaches to economic analysis. Positive economics is based on fact and empirical evidence, while normative economics is based on value judgments and moral principles. Understanding the differences between these two branches of economics is important for making informed economic decisions and policy recommendations.

    References:

    Mankiw, N. G. (2014). Principles of economics. Cengage Learning.

    2. Concept of Ceteris Paribus in Economics with practical examples
    Ceteris paribus is a Latin phrase that means “all other things being equal” or “holding everything else constant.” In economics, ceteris paribus is used as a shorthand way of indicating the effect that one economic variable has on another, while holding all other variables constant. The concept of ceteris paribus is used to simplify economic analysis by isolating the effect of one variable from the effect of other variables.

    For example, suppose a company increases the price of its product. The ceteris paribus assumption means that all other factors that might influence demand, such as consumer income, the price of substitute products, and consumer tastes and preferences, remain constant. The ceteris paribus assumption allows economists to isolate the effect of the price increase on demand and determine how responsive consumers are to changes in price.

    Another example of ceteris paribus in economics is the relationship between interest rates and investment. Ceteris paribus, as interest rates rise, investment decreases. This is because higher interest rates increase the cost of borrowing and reduce the return on investment, making investment less attractive.

    Ceteris paribus is a useful tool for economic analysis, but it has its limitations. In practice, it is difficult to hold all other factors constant, as the economy is complex and dynamic, and there are often multiple factors that influence economic outcomes. Therefore, economists use ceteris paribus as a simplifying assumption, rather than as a precise description of how the economy works.

    In conclusion, ceteris paribus is a concept used in economics to isolate the effect of one economic variable from the effect of other variables. It is a useful tool for simplifying economic analysis and understanding the relationship between economic variables.

    References:

    Mankiw, N. G. (2014). Principles of economics. Cengage Learning.

    Samuelson, P. A., & Nordhaus, W. D. (1985). Economics. McG

  9. Avatar IDOKO BRUNO-FAVOUR EKENEDILICHUKWU REG NO: 2020/242344 says:

    1. Positive Economics
    Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economic theories.
    Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. These statements can be measured against tangible evidence or historical instances. There are no instances of approval-disapproval in positive economics.
    Here’s an example of a positive economic statement: “Government-provided healthcare increases public expenditures.” This statement is fact-based and has no value judgment attached to it. Its validity can be proven (or disproven) by studying healthcare spending where governments provide healthcare.
    2. Normative Economics
    Normative economics focuses on value-based judgments aimed at improving economic development, investment projects, and the distribution of wealth. Its goal is to summarize the desirability (or lack thereof) of various economic developments, situations, and programs by asking what should happen or what ought to be.
    Normative economics is subjective and value-based, originating from personal perspectives or opinions involved in the decision-making process. The statements of this type of economics are rigid and prescriptive in nature. They often sound political, which is why this economic branch is also called “what should be” or “what ought to be” economics.
    An example of a normative economic statement is: “The government should provide basic healthcare to all citizens.” As you can deduce from this statement, it is value-based, rooted in personal perspective, and satisfies the requirement of what “should” be.
    Special Considerations
    Common observations indicate that discussions around public policies typically involve normative economic statements. A higher degree of disagreement persists in such discussions because neither party can clearly prove their correctness.

    Though normative statements are generalized and subjective in nature, they act as the necessary channels for out-of-the-box thinking. Such opinions can form the foundation for any necessary changes that may have the potential to completely transform a particular project.

    But normative economics cannot be the sole basis for decision-making on key economic fronts. Positive economics fills in for the objective angle that focuses on facts and cause-and-effect. Coupled with positive economics, normative economics may be useful in establishing, generating, and fulfilling new ideas and theories for different economic goals and perspectives.

    A clear understanding of the difference between positive and normative economics may lead to better policy-making if policies are made based on a balanced mix of facts (positive economics) and opinions (normative economics). Nonetheless, numerous policies on issues ranging from international trade to welfare are at least partially based on normative economics.
    What Is an Example of Normative Economics?
    Any economic agenda that promotes some sort of social or policy agenda could be said to be normative. For instance, arguing for a higher minimum wage for the benefit of workers would be an example of a normative argument, in that this argument is based on subjective values. However, an assertion that higher minimum wages would lead to a higher GDP would be considered positive economics.

    What Is a Positive Theoretical Statement?
    A positive statement is one that can establish hypotheses that can be empirically tested. In contrast, a normative statement is instead based on opinion or subjective values.
    Is Positive Economics Better Than Normative Economics?
    Both types have their place, and on their own both also have flaws. Integrating positive and normative economic statements together is often required in order to create the policies of a country, region, industrial sector, institution, or business.

    2.Ceteris Paribus is a phrase used in economics that makes economic analysis simpler. In essence, it means ‘other things equal’. With regards to economics, it assumes that other influencing factors are held constant.Ceteris paribus is where all other variables are kept equal. For example, if the price of Coca-Cola falls, ceteris paribus, its demand will increase. It means that other factors are not considered, or are considered to remain constant. Pepsi may react and reduce their prices as well, which may mean demand remains unchanged.
    Alternatively, Coca-Cola may have to compromise on the quality of their ingredients to reduce prices. In turn, this may lead to a decline in demand over the long-term. So, in conclusion, ceteris paribus is the simplification of an economic argument.
    Usually, it is applied because there are many unknown factors or factors that cannot be considered accurately into the equation. By keeping other variables constant, we are able to make some form of analysis.
    Ceteris Paribus Examples
    Ceteris paribus is an economic term where all other variables are kept constant. Examples include interest rates, the minimum wage, and higher taxes. When examining each of those, economists must often assume ceteris paribus in order to create some meaningful insight – due to the complexity and number of other variables.

    1. Interest Rates
    When the interest rate increases (ceteris paribus), demand for debt goes down, as the cost of borrowing increases.

    What is not considered is the wider economy. For instance, if businesses are doing well and looking to expand, an increase in the interest rate is unlikely to hold them back from borrowing.

    Furthermore, high-interest rates may come in at a time whereby the money supply has grown rapidly. When the money supply is growing rapidly, inflation usually results. If people come to expect inflation, they will also expect the real value of their debt to increase.

    Whilst there are other factors that will drive demand for debt, the interest rate is the most influential. It is for that reason economists use ceteris paribus. We can logically conclude that higher interest rates will decrease the demand for debt. However, it is equally important for us to conclude that this may not always be the case.
    2. Minimum Wage
    When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.

    What is not considered is the growth of the economy. When the wider economy is growing, we see industries that rely on minimum wage employees’ boom. For example, restaurants, retail, and fast food tend to see a pickup in demand as consumers eat out and spend more.

    In turn, demand for employees has to grow, whether the wages are higher or not. In fact, it could be argued that wages would naturally go up anyway.

    We also need to consider the fact that employers may pay a higher minimum wage but cut back on other benefits such as overtime pay or bonuses. So the demand for workers may go up, but they receive fewer employment benefits.

    As we can see, there is more to the minimum wage than a simple supply and demand chart. At the same time, it provides economists with a basis to work from. Supply and demand theory would dictate that higher wages lead to lower demand. Yet what other variables are there that would mitigate these effects?

    If we start from the theory, we can either identify variables that prove it would not work in current circumstances. Or, that in these circumstances, it would work.
    3. Higher Taxes
    If the government taxes people more, it receives more money. For instance, if the rate of income tax goes from 20 percent to 25 percent, the government should bring in more money. This is based upon ceteris paribus, where no other variables change.

    What is not considered is the impact on individuals, particularly rich individuals. They may leave the country altogether and what they contribute in taxes as well.

    Or, higher taxes might come at a time of economic decline. So people are losing their jobs and they aren’t spending so much. In turn, this may contribute to lower taxes by itself.

    There are many other factors, but unlike the previous examples, tax receipts are more sensitive to other variables. In other words, higher taxes are only one small factor in a list of many. For instance, the economy is a better predictor of how much money the government would receive.

  10. Avatar Ezeoyili Marycynthia chinenye says:

    Name: Ezeoyili Marycynthia Chinenye
    Reg number: 2021/243550
    Department: Nursing science
    Assignment on economics 101

    1.Briefly discuss the elementary theory of utility

    The elementary theory of utility is a foundational concept in economics that seeks to explain how individuals make choices about consumption. According to this theory, individuals seek to maximize their satisfaction or “utility” from the goods and services they consume.
    The theory assumes that individuals have preferences for different goods and services, and that these preferences can be ordered in a consistent way. This means that if an individual prefers A to B and B to C, then they must also prefer A to C.
    Utility is typically measured in terms of a numerical scale, although the specific units of measurement are not important. As a result, economists often use the term “utils” to refer to the units of measurement for utility.
    The theory of utility also assumes that individuals face constraints on their consumption choices, such as limited income or time. As a result, individuals must make trade-offs between different goods and services, choosing the combination that maximizes their utility within the constraints they face.
    Overall, the elementary theory of utility provides a framework for understanding how individuals make choices about consumption and how these choices are influenced by their preferences and constraints.

    2.Mention and discuss the difference views of utility according to the school of thought which you have been taught

    Classical Economics:
    Classical economists like Adam Smith believed that individuals always act in their own self-interest and seek to maximize their own utility. According to them, utility is a subjective measure of how much satisfaction or pleasure a person derives from consuming a good or service. They saw utility as an important factor in determining the price of a good or service.

    Marginalism:
    Marginalism, which emerged in the late 19th century, introduced the concept of marginal utility. According to this view, the utility a person derives from consuming a good or service is not fixed but varies with the quantity consumed. Marginalists believed that individuals make decisions at the margin, meaning they consider the additional utility they would receive from consuming an additional unit of a good or service before making a decision to purchase it.

    Neoclassical Economics:
    Neoclassical economics built upon the ideas of marginalism and introduced the concept of consumer surplus. Consumer surplus is the difference between the amount that consumers are willing to pay for a good or service and the actual price they pay. Neoclassical economists believed that individuals make rational decisions and seek to maximize their utility subject to their budget constraints. They also believed that markets are efficient and lead to an allocation of resources that maximizes social welfare.

    Behavioral Economics:
    Behavioral economics challenges the assumptions of neoclassical economics by recognizing that individuals do not always make rational decisions. Behavioral economists believe that individuals are subject to biases and heuristics that affect their decision-making. They also recognize that utility is not solely determined by the intrinsic qualities of a good or service, but also by social and cultural factors.

    In summary, different schools of economic thought have different views of utility. Classical economists saw utility as a measure of satisfaction or pleasure, while marginalists introduced the concept of marginal utility. Neoclassical economists believed that individuals make rational decisions and seek to maximize their utility subject to their budget constraints, while behavioral economists recognize that individuals are subject to biases and heuristics that affect their decision-making.

    3.Explain the demand for and pricing of productive factors emphasizing on the labour market.

    The demand for productive factors, such as labor, refers to the amount of labor that firms are willing and able to hire at different wage rates. This demand is determined by a number of factors, including the level of production that a firm wants to achieve, the technology it uses, and the availability of other productive factors such as capital.
    In general, firms will hire more labor when the cost of hiring that labor is lower. This means that the demand for labor is downward sloping, with firms hiring more workers at lower wages and fewer workers at higher wages. This relationship is shown on a graph as a downward sloping labor demand curve.

    The pricing of productive factors, including labor, is determined by the interaction of supply and demand. In the labor market, the supply of labor is determined by the number of workers willing and able to work at different wage rates. This supply is upward sloping, with more workers willing to work at higher wages.

    The intersection of the labor supply and demand curves determines the equilibrium wage rate and quantity of labor. At the equilibrium wage rate, the quantity of labor demanded by firms is equal to the quantity of labor supplied by workers.

    If the demand for labor increases, the labor demand curve shifts to the right, leading to an increase in both the equilibrium wage rate and quantity of labor. Conversely, if the demand for labor decreases, the labor demand curve shifts to the left, leading to a decrease in both the equilibrium wage rate and quantity of labor.

    Similarly, if the supply of labor increases, the labor supply curve shifts to the right, leading to a decrease in the equilibrium wage rate and an increase in the quantity of labor. If the supply of labor decreases, the labor supply curve shifts to the left, leading to an increase in the equilibrium wage rate and a decrease in the quantity of labor.

    Overall, the pricing of labor is determined by the interaction of labor supply and demand. The demand for labor is influenced by the level of production, technology, and availability of other productive factors. The supply of labor is influenced by the number of workers willing and able to work at different wage rates. The equilibrium wage rate and quantity of labor are determined by the intersection of labor supply and demand.

  11. Avatar Onovo Amarachi Agatha says:

    Name;Onovo Amarachi Agatha
    Department;Public Administration and local Government
    Reg number;2021/246593
    1, Positive economics describes and explains various economic phenomena, while normative economics focuses on the value of economic fairness or what the economy should be.
    Positive Economics
    Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economic theories.
    1 Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. These statements can be measured against tangible evidence or historical instances. There are no instances of approval-disapproval in positive economics.

    Here’s an example of a positive economic statement: “Government-provided healthcare increases public expenditures.” This statement is fact-based and has no value judgment attached to it. Its validity can be proven (or disproven) by studying healthcare spending where governments provide healthcare.
    Normative economics focuses on value-based judgments aimed at improving economic development, investment projects, and the distribution of wealth. Its goal is to summarize the desirability (or lack thereof) of various economic developments, situations, and programs by asking what should happen or what ought to be.

    Normative economics is subjective and value-based, originating from personal perspectives or opinions involved in the decision-making process. The statements of this type of economics are rigid and prescriptive in nature. They often sound political, which is why this economic branch is also called “what should be” or “what ought to be” economics..

    An example of a normative economic statement is: “The government should provide basic healthcare to all citizens.” As you can deduce from this statement, it is value-based, rooted in personal perspective, and satisfies the requirement of what “should” be.
    2.In essence, it means ‘other things equal’. With regards to economics, it assumes that other influencing factors are held constant.

    Ceteris paribus is where all other variables are kept equal. For example, if the price of Coca-Cola falls, ceteris paribus, its demand will increase.
    Ceteris paribus is important in economics as it helps us develop some form of understanding of economic mechanisms. In other words, it allows us to form a basic understanding and principle by which we can build on.

    One of the classic examples of ceteris paribus is the supply and demand curve. As prices increase (ceteris paribus), demand falls. Now we can accept this fact when all other things are equal. However, there are also other factors such as the price of substitutes, taxes, economic climate, and so on.

    By applying ceteris paribus, we have a base to work from. Then we can start applying other factors and looking at the impact they would have. After all, we are only human and we do have cognitive limitations. We cannot plausibly factor in all variables.
    1. Interest Rates
    When the interest rate increases (ceteris paribus), demand for debt goes down, as the cost of borrowing increases.

    What is not considered is the wider economy. For instance, if businesses are doing well and looking to expand, an increase in the interest rate is unlikely to hold them back from borrowing.

    Furthermore, high-interest rates may come in at a time whereby the money supply has grown rapidly. When the money supply is growing rapidly, inflation usually results. If people come to expect inflation, they will also expect the real value of their debt to increase.

    Whilst there are other factors that will drive demand for debt, the interest rate is the most influential. It is for that reason economists use ceteris paribus. We can logically conclude that higher interest rates will decrease the demand for debt. However, it is equally important for us to conclude that this may not always be the case.

    2. Minimum Wage
    When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.

    What is not considered is the growth of the economy. When the wider economy is growing, we see industries that rely on minimum wage employees’ boom. For example, restaurants, retail, and fast food tend to see a pickup in demand as consumers eat out and spend more.

    In turn, demand for employees has to grow, whether the wages are higher or not. In fact, it could be argued that wages would naturally go up anyway.

    We also need to consider the fact that employers may pay a higher minimum wage but cut back on other benefits such as overtime pay or bonuses. So the demand for workers may go up, but they receive fewer employment benefits.

    As we can see, there is more to the minimum wage than a simple supply and demand chart. At the same time, it provides economists with a basis to work from. Supply and demand theory would dictate that higher wages lead to lower demand. Yet what other variables are there that would mitigate these effects?

    If we start from the theory, we can either identify variables that prove it would not work in current circumstances. Or, that in these circumstances, it would work.

    3. Higher Taxes
    If the government taxes people more, it receives more money. For instance, if the rate of income tax goes from 20 percent to 25 percent, the government should bring in more money. This is based upon ceteris paribus, where no other variables change.

    What is not considered is the impact on individuals, particularly rich individuals. They may leave the country altogether and what they contribute in taxes as well.

    Or, higher taxes might come at a time of economic decline. So people are losing their jobs and they aren’t spending so much. In turn, this may contribute to lower taxes by itself.

    There are many other factors, but unlike the previous examples, tax receipts are more sensitive to other variables. In other words, higher taxes are only one small factor in a list of many. For instance, the economy is a better predictor of how much money the government would receive.

    Advantages of Ceteris Paribus
    One of the benefits of Ceteris Paribus is that it can simplify complex economic issues. For example, when taxes rise, we would expect government to bring in more money. However, there are a large number of reasons why this might not actually be the case. People might be losing their jobs, consumers might be spending less, and inflation might be eroding away the real value of its income.

    In essence, ceteris paribus sets up a starting point for economic discussion and policy making. For instance, governments might want to help improve the lives of those in the lower income brackets. One potential solution is to raise the minimum wage which would, ceteris paribus, bring them a greater level of income.

    If minimum wage workers have a higher level of income, their living standards will improve – assuming everything else remains the same. This is the point of ceteris paribus. It sets up a basis for economic discussion. So then we would consider what are the other factors which would prevent such a scenario from occurring.

    Disadvantages of Ceteris Paribus
    One of the main criticisms of ceteris paribus is that it takes assumptions too far, thereby forgetting the human element of economics. More often than not, these assumptions create highly unrealistic if not impossible models. For example, the models of perfect competition, marginal utility, and elasticity of demand are all based upon certain assumptions that do not occur in the real-world.

    The criticism of ceteris paribus is not without merit. For example, supply and demand is at the heart of economics. As demand goes up, prices increase. As prices increase, supply also increases as suppliers aim to take advantage of price rises. However, there are a large number of factors which are not considered and therefore, the model may not represent the real-world.

    Looking at supply and demand, there is the assumption that suppliers will in fact increase supply. Yet in the real-world, suppliers may not want to in order to maintain high profit margins. Alternatively, they may not be able to, which is one of the factors which is driving up prices. As we have seen during the period of COVID, many supply chains become disrupted, with suppliers unable to meet higher demand even if they wanted to.
    1. Interest Rates
    When the interest rate increases (ceteris paribus), demand for debt goes down, as the cost of borrowing increases.

    What is not considered is the wider economy. For instance, if businesses are doing well and looking to expand, an increase in the interest rate is unlikely to hold them back from borrowing.

    Furthermore, high-interest rates may come in at a time whereby the money supply has grown rapidly. When the money supply is growing rapidly, inflation usually results. If people come to expect inflation, they will also expect the real value of their debt to increase.

    Whilst there are other factors that will drive demand for debt, the interest rate is the most influential. It is for that reason economists use ceteris paribus. We can logically conclude that higher interest rates will decrease the demand for debt. However, it is equally important for us to conclude that this may not always be the case.

    2. Minimum Wage
    When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.

    What is not considered is the growth of the economy. When the wider economy is growing, we see industries that rely on minimum wage employees’ boom. For example, restaurants, retail, and fast food tend to see a pickup in demand as consumers eat out and spend more.

    In turn, demand for employees has to grow, whether the wages are higher or not. In fact, it could be argued that wages would naturally go up anyway.

    We also need to consider the fact that employers may pay a higher minimum wage but cut back on other benefits such as overtime pay or bonuses. So the demand for workers may go up, but they receive fewer employment benefits.

    As we can see, there is more to the minimum wage than a simple supply and demand chart. At the same time, it provides economists with a basis to work from. Supply and demand theory would dictate that higher wages lead to lower demand. Yet what other variables are there that would mitigate these effects?

    If we start from the theory, we can either identify variables that prove it would not work in current circumstances. Or, that in these circumstances, it would work.

    3. Higher Taxes
    If the government taxes people more, it receives more money. For instance, if the rate of income tax goes from 20 percent to 25 percent, the government should bring in more money. This is based upon ceteris paribus, where no other variables change.

    What is not considered is the impact on individuals, particularly rich individuals. They may leave the country altogether and what they contribute in taxes as well.

    Or, higher taxes might come at a time of economic decline. So people are losing their jobs and they aren’t spending so much. In turn, this may contribute to lower taxes by itself.

    There are many other factors, but unlike the previous examples, tax receipts are more sensitive to other variables. In other words, higher taxes are only one small factor in a list of many. For instance, the economy is a better predictor of how much money the government would receive.

    Advantages of Ceteris Paribus
    One of the benefits of Ceteris Paribus is that it can simplify complex economic issues. For example, when taxes rise, we would expect government to bring in more money. However, there are a large number of reasons why this might not actually be the case. People might be losing their jobs, consumers might be spending less, and inflation might be eroding away the real value of its income.

    In essence, ceteris paribus sets up a starting point for economic discussion and policy making. For instance, governments might want to help improve the lives of those in the lower income brackets. One potential solution is to raise the minimum wage which would, ceteris paribus, bring them a greater level of income.

    If minimum wage workers have a higher level of income, their living standards will improve – assuming everything else remains the same. This is the point of ceteris paribus. It sets up a basis for economic discussion. So then we would consider what are the other factors which would prevent such a scenario from occurring.

    Disadvantages of Ceteris Paribus
    One of the main criticisms of ceteris paribus is that it takes assumptions too far, thereby forgetting the human element of economics. More often than not, these assumptions create highly unrealistic if not impossible models. For example, the models of perfect competition, marginal utility, and elasticity of demand are all based upon certain assumptions that do not occur in the real-world.

    The criticism of ceteris paribus is not without merit. For example, supply and demand is at the heart of economics. As demand goes up, prices increase. As prices increase, supply also increases as suppliers aim to take advantage of price rises. However, there are a large number of factors which are not considered and therefore, the model may not represent the real-world.

    Looking at supply and demand, there is the assumption that suppliers will in fact increase supply. Yet in the real-world, suppliers may not want to in order to maintain high profit margins. Alternatively, they may not be able to, which is one of the factors which is driving up prices. As we have seen during the period of COVID, many supply chains become disrupted, with suppliers unable to meet higher demand even if they wanted to.
    1. Interest Rates
    When the interest rate increases (ceteris paribus), demand for debt goes down, as the cost of borrowing increases.

    What is not considered is the wider economy. For instance, if businesses are doing well and looking to expand, an increase in the interest rate is unlikely to hold them back from borrowing.

    Furthermore, high-interest rates may come in at a time whereby the money supply has grown rapidly. When the money supply is growing rapidly, inflation usually results. If people come to expect inflation, they will also expect the real value of their debt to increase.

    Whilst there are other factors that will drive demand for debt, the interest rate is the most influential. It is for that reason economists use ceteris paribus. We can logically conclude that higher interest rates will decrease the demand for debt. However, it is equally important for us to conclude that this may not always be the case.

    2. Minimum Wage
    When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.

    What is not considered is the growth of the economy. When the wider economy is growing, we see industries that rely on minimum wage employees’ boom. For example, restaurants, retail, and fast food tend to see a pickup in demand as consumers eat out and spend more.

    In turn, demand for employees has to grow, whether the wages are higher or not. In fact, it could be argued that wages would naturally go up anyway.

    We also need to consider the fact that employers may pay a higher minimum wage but cut back on other benefits such as overtime pay or bonuses. So the demand for workers may go up, but they receive fewer employment benefits.

    As we can see, there is more to the minimum wage than a simple supply and demand chart. At the same time, it provides economists with a basis to work from. Supply and demand theory would dictate that higher wages lead to lower demand. Yet what other variables are there that would mitigate these effects?

    If we start from the theory, we can either identify variables that prove it would not work in current circumstances. Or, that in these circumstances, it would work.

    3. Higher Taxes
    If the government taxes people more, it receives more money. For instance, if the rate of income tax goes from 20 percent to 25 percent, the government should bring in more money. This is based upon ceteris paribus, where no other variables change.

    What is not considered is the impact on individuals, particularly rich individuals. They may leave the country altogether and what they contribute in taxes as well.

    Or, higher taxes might come at a time of economic decline. So people are losing their jobs and they aren’t spending so much. In turn, this may contribute to lower taxes by itself.

    There are many other factors, but unlike the previous examples, tax receipts are more sensitive to other variables. In other words, higher taxes are only one small factor in a list of many. For instance, the economy is a better predictor of how much money the government would receive.

    Advantages of Ceteris Paribus
    One of the benefits of Ceteris Paribus is that it can simplify complex economic issues. For example, when taxes rise, we would expect government to bring in more money. However, there are a large number of reasons why this might not actually be the case. People might be losing their jobs, consumers might be spending less, and inflation might be eroding away the real value of its income.

    In essence, ceteris paribus sets up a starting point for economic discussion and policy making. For instance, governments might want to help improve the lives of those in the lower income brackets. One potential solution is to raise the minimum wage which would, ceteris paribus, bring them a greater level of income.

    If minimum wage workers have a higher level of income, their living standards will improve – assuming everything else remains the same. This is the point of ceteris paribus. It sets up a basis for economic discussion. So then we would consider what are the other factors which would prevent such a scenario from occurring.

    Disadvantages of Ceteris Paribus
    One of the main criticisms of ceteris paribus is that it takes assumptions too far, thereby forgetting the human element of economics. More often than not, these assumptions create highly unrealistic if not impossible models. For example, the models of perfect competition, marginal utility, and elasticity of demand are all based upon certain assumptions that do not occur in the real-world.

    The criticism of ceteris paribus is not without merit. For example, supply and demand is at the heart of economics. As demand goes up, prices increase. As prices increase, supply also increases as suppliers aim to take advantage of price rises. However, there are a large number of factors which are not considered and therefore, the model may not represent the real-world.

    Looking at supply and demand, there is the assumption that suppliers will in fact increase supply. Yet in the real-world, suppliers may not want to in order to maintain high profit margins. Alternatively, they may not be able to, which is one of the factors which is driving up prices. As we have seen during the period of COVID, many supply chains become disrupted, with suppliers unable to meet higher demand even if they wanted to.
    Examples are;
    Ceteris paribus is an economic term where all other variables are kept constant. Examples include interest rates, the minimum wage, and higher taxes. When examining each of those, economists must often assume ceteris paribus in order to create some meaningful insight – due to the complexity and number of other variables.

    1. Interest Rates
    When the interest rate increases (ceteris paribus), demand for debt goes down, as the cost of borrowing increases.

    What is not considered is the wider economy. For instance, if businesses are doing well and looking to expand, an increase in the interest rate is unlikely to hold them back from borrowing.

    Furthermore, high-interest rates may come in at a time whereby the money supply has grown rapidly. When the money supply is growing rapidly, inflation usually results. If people come to expect inflation, they will also expect the real value of their debt to increase.

    Whilst there are other factors that will drive demand for debt, the interest rate is the most influential. It is for that reason economists use ceteris paribus. We can logically conclude that higher interest rates will decrease the demand for debt. However, it is equally important for us to conclude that this may not always be the case.

    2. Minimum Wage
    When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.

    What is not considered is the growth of the economy. When the wider economy is growing, we see industries that rely on minimum wage employees’ boom. For example, restaurants, retail, and fast food tend to see a pickup in demand as consumers eat out and spend more.

    In turn, demand for employees has to grow, whether the wages are higher or not. In fact, it could be argued that wages would naturally go up anyway.

    We also need to consider the fact that employers may pay a higher minimum wage but cut back on other benefits such as overtime pay or bonuses. So the demand for workers may go up, but they receive fewer employment benefits.

    As we can see, there is more to the minimum wage than a simple supply and demand chart. At the same time, it provides economists with a basis to work from. Supply and demand theory would dictate that higher wages lead to lower demand. Yet what other variables are there that would mitigate these effects?

    If we start from the theory, we can either identify variables that prove it would not work in current circumstances. Or, that in these circumstances, it would work.

    3. Higher Taxes
    If the government taxes people more, it receives more money. For instance, if the rate of income tax goes from 20 percent to 25 percent, the government should bring in more money. This is based upon ceteris paribus, where no other variables change.

    What is not considered is the impact on individuals, particularly rich individuals. They may leave the country altogether and what they contribute in taxes as well.

    Or, higher taxes might come at a time of economic decline. So people are losing their jobs and they aren’t spending so much. In turn, this may contribute to lower taxes by itself.

    There are many other factors, but unlike the previous examples, tax receipts are more sensitive to other variables. In other words, higher taxes are only one small factor in a list of many. For instance, the economy is a better predictor of how much money the government would receive.
    Ceteris paribus is an economic term where all other variables are kept constant. Examples include interest rates, the minimum wage, and higher taxes. When examining each of those, economists must often assume ceteris paribus in order to create some meaningful insight – due to the complexity and number of other variables.

    1. Interest Rates
    When the interest rate increases (ceteris paribus), demand for debt goes down, as the cost of borrowing increases.

    What is not considered is the wider economy. For instance, if businesses are doing well and looking to expand, an increase in the interest rate is unlikely to hold them back from borrowing.

    Furthermore, high-interest rates may come in at a time whereby the money supply has grown rapidly. When the money supply is growing rapidly, inflation usually results. If people come to expect inflation, they will also expect the real value of their debt to increase.

    Whilst there are other factors that will drive demand for debt, the interest rate is the most influential. It is for that reason economists use ceteris paribus. We can logically conclude that higher interest rates will decrease the demand for debt. However, it is equally important for us to conclude that this may not always be the case.

    2. Minimum Wage
    When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.

    What is not considered is the growth of the economy. When the wider economy is growing, we see industries that rely on minimum wage employees’ boom. For example, restaurants, retail, and fast food tend to see a pickup in demand as consumers eat out and spend more.

    In turn, demand for employees has to grow, whether the wages are higher or not. In fact, it could be argued that wages would naturally go up anyway.

    We also need to consider the fact that employers may pay a higher minimum wage but cut back on other benefits such as overtime pay or bonuses. So the demand for workers may go up, but they receive fewer employment benefits.

    As we can see, there is more to the minimum wage than a simple supply and demand chart. At the same time, it provides economists with a basis to work from. Supply and demand theory would dictate that higher wages lead to lower demand. Yet what other variables are there that would mitigate these effects?

    If we start from the theory, we can either identify variables that prove it would not work in current circumstances. Or, that in these circumstances, it would work.

    3. Higher Taxes
    If the government taxes people more, it receives more money. For instance, if the rate of income tax goes from 20 percent to 25 percent, the government should bring in more money. This is based upon ceteris paribus, where no other variables change.

    What is not considered is the impact on individuals, particularly rich individuals. They may leave the country altogether and what they contribute in taxes as well.

    Or, higher taxes might come at a time of economic decline. So people are losing their jobs and they aren’t spending so much. In turn, this may contribute to lower taxes by itself.

    There are many other factors, but unlike the previous examples, tax receipts are more sensitive to other variables. In other words, higher taxes are only one small factor in a list of many. For instance, the economy is a better predictor of how much money the government would receive.

  12. Avatar Nriekwe Chisom Marylinda REG NO 2021/244426 says:

    NAME: NRIEKWE CHISOM MARYLINDA
    REG NO: 2021/244426

    1. DIFFERENCES BETWEEN NORMATIVE ECONOMICS AND POSITIVE ECONOMICS
    Normative economics is a branch of economics that is based on opinion and value judgments, while positive economics is a branch of economics that is based on facts and evidence. Normative economics focuses on what should be, while positive economics focuses on what is.

    Normative economics is concerned with making value judgments about what the ideal economic outcome should be for a given situation. It is based on the opinion of the economist and is not necessarily backed up by data. For example, a normative economist might make a judgment about what the optimal level of government spending should be.

    Positive economics, on the other hand, is focused on describing how the economy works and on making predictions about the future. It is based on facts and evidence, and it is not concerned with making value judgments. For example, a positive economist might analyze the effects of a certain policy on economic growth or make a prediction about the future of inflation.

    In summary, the main difference between normative economics and positive economics is that normative economics is based on opinion and value judgments, while positive economics is based on facts and evidence.

    2. CONCEPT OF CETERIS PARIBUS IN ECONOMICS WITH PRACTICAL EXAMPLES
    Ceteris paribus is a Latin phrase meaning “all other things being equal” or “other things unchanged.” It is a concept in economics that allows economists to analyze the effect of one variable on another by holding all other variables constant. This concept is important in economics because it allows economists to isolate and analyze the effect of one variable on another without being overwhelmed by the complexity of the real world.

    For example, economists can use ceteris paribus to analyze the effect of an increase in taxes on consumer spending. In this case, all other variables, such as interest rates, inflation, wages, and the availability of credit, would remain constant. This allows economists to isolate the effect of the tax increase on consumer spending without being influenced by other variables.

    Ceteris paribus is also important in economic models. Economic models are used to forecast the future and to test theories. In order for these models to be accurate, all other variables must remain constant. For example, if an economist is trying to model the effect of a decrease in taxes on economic growth, all other variables, such as population growth, technology, and the availability of resources, must remain constant.

    In practice, however, ceteris paribus is rarely observed in the real world. This is because all variables are constantly changing, and it is impossible to isolate the effect of one variable on another without taking into account all of the other variables. Nevertheless, ceteris paribus is an important concept in economics that allows economists to analyze the effect of one variable on another without being overwhelmed by the complexity of the real world.

    All things being equal, if the price of milk increases, people will buy less milk. This assumption ignores how other substitutes are behaving, how household income is behaving, or non-economic factors such as the health benefits of milk. Ceteris paribus, people will buy less of a product if the price is higher.

  13. Avatar Okoli Ogbonna Ernest. Registration number 2021/246118 says:

    Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgements toward economic development, investment projects, statements, and scenarios.
    Normative economics heavily concerns itself with value judgments and statements of “what ought to be” rather than facts based on cause _ and_ effects statements.
    While
    Positive economics is a system of economics that is based on objective, factual information that can be proven true or false by using a scientific approach. It can be used as a reliable source for decision-making purposes for a business or government authority
    Positive economics is the part of Economics that’s deals with positive statements. That is, it focuses on the description, quantification and explanation of Economic phenomena.

    Ceteris paribus is a latin phrase that generally means “all other things being equal.” Is particularly crucial in the study of cause and effect relationship between two specific variables such that other relevant factors influencing these are assumed to be constant by the assumption of ceteris paribus.

  14. Avatar quip says:

    Thankfuⅼness to my father ᴡho told me on the topic of
    this weƄsіte, this webpage is actually amaᴢing.

  15. Positive economist explain various economic phenomenon or based on fact and can not be approved or dissaproved meanwhile normative economist is focused on what economy should be and is based on value judgement. Ceteris peribus means all other things being equal.in this case, if nothing unexpected happens or if there are no other factors which affect the situation.

  16. Avatar Ezenduka Sochima Adriano 2021/241333 says:

    My matric number is 2021/241333 please I’m soo sorry I wasn’t informed earlier 🙏

  17. Avatar ANIESEDO DUMEBI JESSICA 2020/241155 SLT says:

    1. Positive economics and normative economics are two standard branches of modern economics. Positive economics describes and explains various economic phenomena, while normative economics focuses on the value of economic fairness or what the economy should be.

    To put it simply, positive economics is called the “what is” branch of economics. Normative economics, on the other hand, is considered the branch of economics that tries to determine the desirability of different economic programs and conditions by asking what “should” or what “ought” to be.

    2. Ceteris Paribus or Caeteris Paribus is a Latin phrase that means ‘other conditions being constant’ or ‘all else being equal’. It helps in understanding the cause-and-effect relationship between two variables. In economics discussions, Juan de Medina and Luis de Molina first used it in the sixteenth century. It is the most widely used and dominant concept in economics and finance for analysis of economic theory. It cannot predict anything with certainty or absoluteness. However, it provides a base for the possible way to determine causal relations.

    Simply put, it assumes that two variables have a cause-and-effect relationship only when the external factors, which might affect the variables, remain the same. In economics, all the variables are constantly changing; this concept helps to understand any economic or financial mechanisms. Economists and financial analysts find it difficult to factor in all the dynamic variables together simultaneously and then study the variables’ relationship. Studying such relationships leads to chaos and complexity in the calculations. Moreover, this concept points out some important factors. Example includes price, that directly impacts the connection between two variables like supply and demand.

    The price factor can associate multiple variables responsible for the change in demand for a commodity. Likewise, supply always increases when the demand for a product rise, provided other things like input cost, wages, and taxes remain the same. Thus, ceteris paribus comes into play, and one can say that supply falls whenever demand falls.

  18. Avatar Ngwoke Chinenyenwa Eucharia: 2020/242471 says:

    1. DIFFERENCE BETWEEN NORMATIVE AND POSITIVE ECONOMICS
    Positive economics talks about things that exist. They are facts that can be verifiable. You can prove it or disprove it. You can test it and find out whether these statements mentioned under positive economics
    are true or untrue,but normative economics is fiction. They aren’t facts; rather, they are economists’ opinions who tell us what they think. It can be true for some and false for some. The statements under positive economics can be tested or verified. That means the statements can be either true or false. The statements under normative economics, on the other hand, are opinions and recommendations which can’t be verified until they’re acted upon first.
    The statements under positive economics are objective, while the statements under normative economics are subjective. The statement under positive economics focus on cause and effect relationships. On the other hand, the statements under normative economics concentrate on what can work and why.
    Both economics is important because, without one, another doesn’t make sense
    2. CETERIS PARIBUS IN ECONOMICS
    Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.” An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Most, though not all, economists rely on ceteris paribus to build and test economic models. In simple language, it means the economist can hold all variables in the model constant and tinker with them one at a time.
    EXAMPLE OF CETERIS PARIBUS IN ECONOMICS
    There is often an inverse relationship between interest rates and the demand for borrowing. This is because higher interest rates cause loans to become more expensive. Therefore, ceteris paribus, higher interest rates cause decreased demand for debt. Of course, other factors (consumer demand, consumer preference, consumer creditworthiness) are all considers that may change the outcome of the statement. However, when all factors regarding the borrower are isolated, higher interest rates mean higher loan costs which decreases demand.

  19. Avatar Kalu Precious Onyedikachi; 2020/245113 says:

    1 DIFFERENCE BETWEEN NORMATIVE AND POSITIVE ECONOMICS
    Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. These statements can be measured against tangible evidence or historical instances. There are no instances of approval-disapproval in positive economics.
    Positive economics was popularized by the economist Milton Friedman, who said that economic science should objectively analyze data without any bias or agenda.
    Normative economics is subjective and value-based, originating from personal perspectives or opinions involved in the decision-making process. The statements of this type of economics are rigid and prescriptive in nature. They often sound political, which is why this economic branch is also called “what should be” or “what ought to be” economics.Positive economics is a measurable perspective and normative economics is a precautional perspective.
    Positive economics defines what is of the economy, while normative economics defines what ought to be of the economy.Positive economics is based on objective data, while normative economics is based on facts and logic.
    2. CETERIS PARIBUS IN ECONOMICS
    Ceteris paribus is a Latin phrase that generally means “all other things being equal.”
    In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.
    Many economists rely on ceteris paribus to describe relative tendencies in markets and to build and test economic models.
    The difficulty with ceteris paribus is the challenge of holding all other variables constant in an effort to isolate what is driving change. In reality, one can never assume “all other things being equal.”
    Example of ceteris paribus in economics
    As an example, take the laws of Supply and DEMAND. Economists say the law of demand demonstrates that CETERIS PARIBUS, more goods tend to be purchased at lower prices. Or that, if demand for any given product exceeds the product’s supply, ceteris paribus, prices will likely rise. In this situation, the price of an item is the only variable that should change. All else should remain ceteris paribus. If only the price were to change, we can appropriately forecast the outcome because of the laws of supply and demand.

  20. Avatar Okafor Kenechi Bella says:

    1) Positive economics is a branch of modern economics that relies on analysis, relevant facts and associated figures. It attempts to establish any cause-and -effect relationships which can help ascertain and test the development of economic theories. This branch of economics is fact based i.e the unemployment rate, inflation rate, housing market statistics and consumer spending.
    Conclusions drawn from positive economics analysis can be tested and backed up by data. This branch of economics theory does not provide advice or instruction. For example, the prediction that more people will save money if interest rate rises would be based on positive economics because past behaviours support that theory. The methodology of positive economics was introduced by two economists; John Nevile Keynes and John Stuart Mill.
    Normative economics on the other hand is a branch of modern economics that is concerned with value judgements and statements of “what ought to be” rather than facts based on cause-and-effects statements. Normative economics statements can’t be verified or tested. It is subjective and value based originating from personal perspectives or opinions involved in the decision making process. They often sound political which is why this branch of economics is called “what should be or what ought to be” economics. An example of a Normative economic statement is “The government should provide basic healthcare to all citizens” the statement is value based, rooted in personal perspective and satifies the requirement of what should be. One of the most famous normative economist is Amartya Sen; a noble prize winner who devoted his career to studying development economics.
    From the above explanations, the differences between normative and positive economics is that positive economics describes and explains various economic phenomena while normative economics focuses on the value of economic fairness or what the economy should be or ought to be.while positive economics is based on facts and cannot be approved or disapproved, normative economics is based on value judgements.
    2) Ceteris paribus is a Latin phrase that generally means “all other things being equal.”
    In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.
    Many economists rely on ceteris paribus to describe relative tendencies in markets and to build and test economic models.
    The difficulty with ceteris paribus is the challenge of holding all other variables constant in an effort to isolate what is driving change.
    In reality, one can never assume “all other things being equal.” In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect. An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one.
    Ceteris paribus assumptions help transform an otherwise deductive social science into a methodologically positive “hard” science. It creates an imaginary system of rules and conditions from which economists can pursue a specific end. Put another way; it helps the economist circumvent human nature and the problems of limited knowledge. Most, though not all, economists rely on ceteris paribus to build and test economic models. In simple language, it means the economist can hold all variables in the model constant and tinker with them one at a time. Ceteris paribus has its limitations, especially when such arguments are layered on top of one another. Nevertheless, it is an important and useful way to describe relative tendencies in markets.
    Applications of Ceteris Paribus
    Suppose that you wanted to explain the price of milk. With a little thought, it becomes apparent that milk costs are influenced by numerous things: the availability of cows, their health, the costs of feeding cows, the amount of useful land, the costs of possible milk substitutes, the number of milk suppliers, the level of inflation in the economy, consumer preferences, transportation, and many other variables. So an economist instead applies ceteris paribus, which essentially says if all other factors remain constant, a reduction in the supply of milk-producing cows, for example, causes the price of milk to rise.

    Supply and Demand
    As an example, take the laws of supply and demand. Economists say the law of demand demonstrates that ceteris paribus, more goods tend to be purchased at lower prices. Or that, if demand for any given product exceeds the product’s supply, ceteris paribus, prices will likely rise. In this situation, the price of an item is the only variable that should change. All else should remain ceteris paribus. If only the price were to change, we can appropriately forecast the outcome because of the laws of supply and demand.

    Macroeconomics/GDP
    In general, economists and other social scientists will report how variables influence one another while holding all else constant. So, if we say that low unemployment is associated with higher inflation, ceteris paribus, it means holding everything else constant like GDP growth, balance of trade, money supply, and so on. However, each of these other factors, among others, also can play into inflation.

    As economist Milton Friedman wrote in 1953, “theory is to be judged by its predictive power for the class of phenomena which it is intended to ‘explain.'”

    Criticisms of Ceteris Paribus
    1) Overcomes Impossible Scenarios; Ceteris paribus assumptions are at the heart of nearly all mainstream microeconomic and macroeconomic models. Even so, some critics of mainstream economics point out that ceteris paribus gives economists the excuse to bypass real problems about human nature. Though this can be a benefit for theoretical application, these scenarios also may never play out in the real world which contests how applicable some findings may be.

    2) Dilutes Logical Value; Economists admit these assumptions are highly unrealistic, and yet these models lead to concepts such as utility curves, cross elasticity, and monopoly. Antitrust legislation is actually predicated on perfect competition arguments. The Austrian school of economics believes ceteris paribus assumptions have been taken too far, transforming economics from a useful, logical social science into a series of math problems.

    3) May Overshadow What Should Be Analyzed
    Financial consultant Frank Shostak wrote that this supply-demand framework is “detached from the facts of reality.” Rather than solving equilibrium situations, he argued, students should learn how prices emerge in the first place. He claimed any subsequent conclusions or public policies derived from these abstract graphical representations are necessarily flawed.

    Like prices, many other factors that affect the economy or finance are continuously in flux. Independent studies or tests may allow for the use of the ceteris paribus principle. But in reality, with something like the stock market, one can never assume “all other things being equal.” There are too many factors affecting stock prices that can and do change constantly; you can’t isolate just one.

    4) Ignores Human Nature and Emotions
    As nice as a black and white world would be, the truth is there are too many variables tied to human nature. Humans are naturally unpredictable and act in irrational ways. Though economic laws may make sense, there are situations in which people don’t do what is theoretically the best for them to do.

    Name: Okafor Kenechi Bella
    Matric No 2021/243713
    Department: Combined
    social sciences
    ( Economics/ political
    science)

  21. Avatar Tadinma Chisom Emmanuel says:

    Tadinma Chisom Emmanuel
    Combined Social Science
    Matric Number: 2021/241442
    The major differences between positive and normative economy
    1. Positive Economy focuses on the objective point of things while normative economy focuses on the subjective point, opinion.
    2. Positive Economy can be either proven or disproved while Normative economy can’t be proven or disproved since it based on value judgement
    3. Positive Economy focuses on the cause and effect relationship of two things. Normative Economy concentrate on what can or what should work
    4. Positive Economy possess a descriptive nature while Normative is usually predescriptive
    Question 2
    discuss and analyse the concept of Ceteris Paribus in Economics with practical examples.
    Ceteris Paribus simply seen as ” all other things being equal”. This concept is used by economist to make an argument about causes and effects.
    Knowing that outcomes can be influenced by a variety of factors but using Ceteris Paribus, all other factors are to remain constant, focusing on the impact of one only
    Taking the inverse relationship between the interest rate and the demand for loans. The higher the interest rate the lower or less the demand for loans Ceteris Paribus being in effect. other factors such as the business worthiness e.t.c may affect it or change the outcome of the above statement however all factors isolated or Ceteris Paribus the higher the interest rate the lower the demand for loans.
    Another example is the relationship between price and demand, the higher the price the lower the quantity demanded as every economist knows, Ceteris Paribus being in effect of course.
    But certain factors such as consumer addiction e.t.c may change this statement without Ceteris Paribus being in effect.
    Ceteris Paribus allows all factor to remain constant focusing on the effect of one only.

  22. Avatar Onovo Agatha Amarachi, reg no:10934299HI,Dept:Public Administration and Local Government, Faculty:Social Science, Level:100 says:

    1)Positive economics is a system of economics that focuses on the description, quantification and explanation of economic developments, and associated phenomena
    Normative economics focuses on value based judgements aimed at improving economic development, investment projects, And the distribution of wealth.

    2)Ceteris Paribus is a Latin phrase that means “all other things being equal”.Experts use it to explain the theory behind law of economics and nature. It means that something will occur as a result of something else most of the time, if nothing else changes.
    The concept of ceteris Paribus is used extensively in economics because so many variables are constantly changing, the laws of gravity is easy to understand because it’s rare for something else to intervene, but that’s not the case with economics. Everything is always changing.

  23. Avatar Ejiofor Ikechuckwu onyinyechukwu says:

    Faculty:social sciences:PALG
    Reg number:11291193IC

    1) Positive Economics is a branch of economics that has an objective approach, based on facts. It analyses and explains the casual relationship between variables. It explains people about how the economy of the country operates. Positive economics is alternatively known as pure economics or descriptive economics.
    When the scientific methods are applied to economic phenomena and scarcity related issues, it is positive economics. Statements based on positive economics considers what’s actually occurring in the economy. It helps the policy makers to decide whether the proposed action, will be able to fulfill our objectives or not. In this way, they accept or reject the statements.

    Normative economics
    The economics that uses value judgments, opinions, beliefs is called normative economics. This branch of economics considers values and results in statements that state, ‘what should be the things’. It incorporates subjective analyses and focuses on theoretical situations.
    Normative Economics suggests how the economy ought to operate. It is also known as policy economics, as it takes into account individual opinions and preferences. Hence, the statements can neither be proven right nor wrong.

    Differences
    Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    Positive economics is descriptive, but normative economics is prescriptive.
    Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.

    2) Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”
    A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.

  24. Avatar Osondu Martha chidimma. 2020/241156 says:

    Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”

    A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.

  25. Avatar Osondu Martha chidimma. 2020/241156 says:

    (1) Positive economics and normative economics are two standard branches of modern economics. Positive economics describes and explains various economic phenomena, while normative economics focuses on the value of economic fairness or what the economy should be.
    (2) Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”

    A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.

  26. Avatar Osondu Martha chidimma. 2020/241156 says:

    (2)Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”

    A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.
    (1)Positive economics and normative economics are two standard branches of modern economics. Positive economics describes and explains various economic phenomena, while normative economics focuses on the value of economic fairness or what the economy should be.

    To put it simply, positive economics is called the “what is” branch of economics. Normative economics, on the other hand, is considered the branch of economics that tries to determine the desirability of different economic programs and conditions by asking what “should” or what “ought” to be.

  27. name: Godspower chinecherem mercy
    Reg no:2021/244131
    email: godspowerchinecherem2002@gmail.com
    1a; The positive economics is an objective science such that,it explains the working of the economic system while normative economics is a subjective science such that, it deals with those areas of human behavior in which personal value judgement are made.
    b; positive economics deals with describing and analysing ways things are or things will be if certain conditions exist while normative economics deals with what “should be” particularly how economics problems should be solved
    c; positive economics gives deductions or statement such as an increase in demand for a commodity will cause it’s price to increase when other factors influencing demand and supply condition remain unchanged while normative economics gives rise to statements such as money supply should be reduced to lower inflation rate in the economy.
    2; ceteris paribus meaning “all other things being equal”is used to define the theory behind the law of economics and nature, meaning that if other factors are considered constant that the rate of change of supply in a commodity is as a result of rate of change in the demand of that same commodity. also all other factors are held constant in order to isolate the effect of a single commodity on an economic outcome.
    examples; if the price of fresh tomatoes falls,it demand will increase while,if the price of fresh tomatoes increases it’s demand will reduce; here the other factors like price of it’s related products like sachet tomatoes are not considered.also higher perfume prices will lead to less demand of perfumes.

    • name: Godspower chinecherem mercy
      Reg no:2021/244131
      email:
      1a; The positive economics is an objective science such that,it explains the working of the economic system while normative economics is a subjective science such that, it deals with those areas of human behavior in which personal value judgement are made.
      b; positive economics deals with describing and analysing ways things are or things will be if certain conditions exist while normative economics deals with what “should be” particularly how economics problems should be solved
      c; positive economics gives deductions or statement such as an increase in demand for a commodity will cause it’s price to increase when other factors influencing demand and supply condition remain unchanged while normative economics gives rise to statements such as money supply should be reduced to lower inflation rate in the economy.
      2; ceteris paribus meaning “all other things being equal”is used to define the theory behind the law of economics and nature, meaning that if other factors are considered constant that the rate of change of supply in a commodity is as a result of rate of change in the demand of that same commodity. also all other factors are held constant in order to isolate the effect of a single commodity on an economic outcome.
      examples; if the price of fresh tomatoes falls,it demand will increase while,if the price of fresh tomatoes increases it’s demand will reduce; here the other factors like price of it’s related products like sachet tomatoes are not considered.also higher perfume prices will lead to less demand of perfumes.

  28. Avatar Enum Edwin Chigozie says:

    In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect. An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one.

  29. Avatar Enum Edwin Chigozie says:

    Positive economics describes and explains various economic phenomena.
    Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.”
    While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.
    Most public policy is based on a combination of both positive and normative economics.

  30. Avatar Name: Chukwu Raphael Chinecherem says:

    DIFFERENCE BETWEEN POSITIVE AND NOMINATIVE ECONOMICS

    Positive economics clearly describes economic issues while Nominative economics provides solution for economic issues based on value

    In positive economics statements can be tested using scientific methods while in nominative economics statements can’t be tested

    Positive economic works on objectives while Nominative works on subjectives

    CETERIS PARIBUS

    Ceteris paribus is a latin words that means “with every other thing being unchanged or constant” it is used in economics to rule out the possibility of other factors changing
    Name: Chukwu Raphael Chinecherem
    Faculty: Social Science
    Department: Public Administration and Local Government
    Reg No: 2021242144
    Level: 100L
    Course: Eco 101
    Email: ralphnechekwu2004@mail.com

  31. Avatar Name: Chukwu Raphael Chinecherem says:

    [1/27, 9:26 PM] +234 806 260 7385: Positive economics is a branch of economics that describes and explains various phenomena which is based on facts and cannot be proved or disproved

    Nominative economics is a branch of economics focuses on the value of economics fairness, or what the economy ‘should be’ or ‘ought to be’
    [1/27, 9:30 PM] +234 806 260 7385: DIFFERENCE BETWEEN POSITIVE AND NOMINATIVE ECONOMICS

    Positive economics clearly describes economic issues while Nominative economics provides solution for economic issues based on value

    In positive economics statements can be tested using scientific methods while in nominative economics statements can’t be tested

    Positive economic works on objectives while Nominative works on subjectives

    CETERIS PARIBUS

    Ceteris paribus is a latin words that means “with every other thing being unchanged or constant” it is used in economics to rule out the possibility of other factors changing
    Name: Chukwu Raphael Chinecherem
    Faculty: Social Science
    Department: Public Administration and Local Government
    Reg No: 2021242144
    Level: 100L
    Course: Eco 101
    Email: ralphnechekwu2004@mail.com

  32. 1). Difference between positive and normative economics
    As it is known positive statement in economics are based on economic phenomenon that can be tested or proven true or false while normative statements are based on ones idea or believe that cannot be tested or proven.
    positive economics describe different economic phenomenon while normative provide solution to economic issues based on value.
    positive economics relies on the past and present data for determining future situation while normative deals in fairness and value of economic principle
    positive economics discusses cause and effect relationship while normative discuses opinion and judgement
    positive economics is factual and descriptive in nature while normative is prescriptive in nature
    positive economics uses data and facts for assessment while normative makes use of assumption based on ones opinion
    positive argument are objective while normative argument are subjective

    2). Ceteris paribus an economic term where all other variables are kept constant. examples include
    Interest rate
    Minimum wage
    High taxes
    Interest rate: when the interest rate increases ceteris paribus demand for debt goes down as the cost of borrowing increases, for instance if there be an increase in the wages of labourers the debt decreases while cost of borrowing will certainly increase and vise versa
    Minimum wages: for instance if the wages of labourers increase the demand for such workers will instantly decrease and vise versa
    Higher taxes: if the government taxes people more it receives more money. for instance if the rate of income tax goes from 60 percent to 75 percent the government should bring in more money and vise versa

  33. Avatar Chiwetalu Amarachi Covenant says:

    NAME: CHIWETALU, AMARACHI COVENANT
    DEPARTMENT: NURSING SCIENCES
    LEVEL: 100L
    REG NO: 2021/243545

    1)
    • The difference between positive and normative statements is that while positive statements attempt to present the economy as it is without making judgements about whether the outcome is good or bad, normative on the other hand is an assertion about what the economy ought to be.
    • Also, normative Economic statements says how people should behave while positive economic statements predicts how people will behave. In other terms, positive statements claims to attempt to prescribe how the world should be.
    • Normative statements are basically prescriptive while positive statements are descriptive.
    • A key difference between positive and normative statement is how we judge their validity. We can, in principle, confirm or refute positive statements by examining evidence, by contrast, evaluating normative statement involves values as well as facts.

    2)
    • Ceteris paribus is a Latin term that translates to “all other things being equal.”
    • Ceteris paribus facilitates the study of causative effects among segregated variables.
    • The ceteris paribus methodology can’t predict absolutes or certainties, but it offers a base knowledge of tendencies or probabilities.
    • Economists may opt to simplify the economic mechanism to explain economic behavior, isolating two or three variables while all others are assumed as constant, unchanging, or in the state of ceteris paribus.
    • An example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  34. Avatar Eke Goodness Chidinma says:

    NAME: EKE GOODNESS CHIDINMA
    DEPARTMENT: NURSING SCIENCE
    REG NO: 2021/244667

    1. Positive Economics is the study of what and why an economy operates as it does. It is also known as Descriptive economics and is based on facts which can be subjected to scientific analysis in order for them to be accepted.
    It is based on factual information and uses statistical data, and scientific formula in determining how an economy should be. It deals with the relationship between cause and effect and can be tested.

    Normative Economics is the study of how the economy should be. It is also known as Policy economics wherein normative statements like opinions and judgments are used. It determines the ideal economy by discussion of ideas and judgments.
    In normative economics, people state their opinions and judgments without considering the facts. They make distinctions between good and bad policies and the right and wrong courses of action by using their judgments.
    Therefore, Positive economics is based on fact and cannot be approved or disapproved while normative economics is based on value judgements.

    Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.” It acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). The use of ceteris paribus allows all other factors to remain constant, focusing on the impact of only one.
    Examples:
    1. If the price of bread increases, people will buy less bread.
    2. When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.

  35. Avatar Eke Goodness Chidinma says:

    Name: Eke Goodness Chidinma
    Reg no: 2021/244667
    email address: ekegoodness2019@gmail.com

  36. Avatar Okoronkwo Chioma Promise says:

    Name: Okoronkwo Chioma Promise
    Department: Nursing sciences
    Reg no: 2021/244505

    Difference between Positive Economics and Normative economics

    1. Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on personal opinions, values, and judgment.
    2. Positive economics is descriptive, but normative economics is prescriptive. Positive describes what or the situation of the economy at that point in time while Normative economics postulates or prescribed solutions to the problem of the economy.
    3.Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments. Normative Economics suggests how the economy ought to operate. It is also known as policy economics, as it takes into account individual opinions and preferences. Hence, the statements can neither be proven right nor wrong.
    4. The perspective of positive economics is objective while normative economics have a subjective perspective.
    5. Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6. The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7. Positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    Concept of Ceteris Paribus
    Ceteris paribus is the commonly used Latin phrase meaning ‘all other things remaining constant.’ When using ceteris paribus in economics, it is often safe to assume that all other variables, except those under immediate consideration, are held constant.
    In the real world, it’s usually hard to isolate all the different variables that may influence or change the outcome of what you are studying and how an individual might make a decision. It’s used in economics to rule out the possibility of other factors changing, which may have an impact on the outcome or decision-making process of individuals.
    Example,In the supply chain, when considering how an item may move throughout the supply chain process, economists may make claims on outcomes assuming all other variables are constant. For example, ceteris paribus, higher raw material prices will decrease manufacturing supply if companies don’t increase their production budgets. This claim does not consider labor hours, packaging, or delivery, e.t.c Most, though not all, economists rely on ceteris paribus to build and test economic models. In simple language, it means the economist can hold all variables in the model constant and tinker with them one at a time. Ceteris paribus has its limitations, especially when such arguments are layered on top of one another. Nevertheless, it is an important and useful way to describeuals.

  37. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful. Reg number:2021/242480 nursing science
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  38. Avatar Muogbo Eberechukwu Mary says:

    Name: Muogbo Eberechukwu Mary
    Level:100
    Reg number:11046869CF
    Faculty: Social sciences
    Department: public administration and local government
    Course code: ECO101

    QUESTIONS
    1. Clearly discuss and analyze the differences between normative economics and positive economics.

    2. Lucidly discuss and analyze the concept of ceteris paribus with partical examples.

    ANSWER
    1. Normative economics is a perspective on economics that reflects normative or idelogically perspective judgment towards economic development, investment project, statement and senrios.

    2. Positive economics refers to the objective analysis in the study of economics. Most look at what has happened and what is currently happening in any given economy to form their bases of productions for the future. Positive economic statement are those assumption that one can easily confirmed false.

    DIFFERENCES BETWEEN NORMATIVE ECONOMICS AND POSITIVE ECONOMICS
    1. Normative economics are based on theory and opinion reflect a view point of how things should work or how it should happen . Normative statements are derived from the economist personal view point and stick to a strict structure that portrays an opinionated tone. While positive analysis focus solely on fact’s where as normative statements also admit opinions and feelings. While it might seem the obvious branch to rely on would be positive, most economist debate revolves around normative.

    2. Positive economics system is based on fact’s, data available at the present time and can be proven true or false. A normative economic statement is based on opinions and theory and cannot be proven true or false
    *”Health is a good life time investment”are positive statement because we can confirm them.

    2. Lucidly discuss and analyze the concept of ceteris paribus with partical examples
    To understand the law of demand,the law of supply and many other important economic concept the best you understand the term ceteris paribus. It is a commonly used Latin phase meaning ‘all other things remaing contest.

    IT’S IMPORTANCE
    1. It’s concept economics because in the different variables that may influence or change the outcome of what your studying and how and individual might make a decision example we say that the increase in the price of tomatoes will lead to less demand. Application include demand and supply

  39. Avatar Arinze Princess Onyedikachi says:

    Normative economics

    Article Talk

    LanguageDownload PDFWatchEdit

    Normative economics (as opposed to positive economics) is the part of economics that deals with normative statements. It focuses on the idea of fairness and what the outcome of the economy or goals of public policy ought to be.[1]

    Economists commonly prefer to distinguish normative economics (“what ought to be” in economic matters) from positive economics (“what is”). Many normative (value) judgments, however, are held conditionally, to be given up if facts or knowledge of facts changes, so that a change of values may be purely scientific.[2] On the other hand, welfare economist Amartya Sen distinguishes basic (normative) judgements, which do not depend on such knowledge, from nonbasic judgments, which do. He said, “no judgments are demonstrably basic” while some value judgments may be shown to be nonbasic. This leaves open the possibility of fruitful scientific discussion of value judgments.[3]

    Positive and normative economics are often synthesized in the style of practical idealism. In this discipline, sometimes called the “art of economics,” positive economics is utilized as a practical tool for achieving normative objectives, which often involve policy changes or states of affairs.

    An example of a normative economic statement is as follows:

    The price of milk should be $6 a gallon to give dairy farmers a higher living standard and to save the family farm.

    This is a normative statement, because it reflects value judgments. This specific statement makes the judgment that farmers deserve a higher living standard and that family farms ought to be saved.[1]

    Normative economics predicates itself upon maximizing both an agents social and political utility, recognized as “aggregating interests”.

    Subfields of normative economics include social choice theory, cooperative game theory, and mechanism design.

    Some earlier technical problems posed in welfare economics and the theory of justice have been sufficiently addressed as to leave room for consideration of proposals in applied fields such as resource allocation, public policy, social indicators, and inequality and poverty measurement.[4]

    See also

    NotesEdit

    ^ Jump up to:a b Paul A. Samuelson and William D. Nordhaus(2004). Economics, 18th ed., pp. 5-6 & [end] Glossary of Terms, “Normative vs. positive economics.”^ Stanley Wong (1987). “Positive economics,” The New Palgrave: A Dictionary of Economics, v. 3, p. 21.^ Amartya K. Sen (1970), Collective Choice and Social Welfare, pp. 61, 63-64).^ Marc Fleurbaey (2008). “Ethics and economics,” The New Palgrave Dictionary of Economics. Abstract.

    ReferencesEditAndrew Caplin and Andrew Schotte, ed. (2008). The Foundations of Positive and Normative Economics: A Handbook, Oxford. Description and preview.Marc Fleurbaey (2004). “Normative Economics and Theories of Distributive Justice,” The Elgar Companion to Economics and Philosophy, J.B. Davis and J. Runde, ed., pp. 132-58._____ (2008). “Ethics and economics,” The New Palgrave Dictionary of Economics. Abstract.Milton Friedman (1953). “The Methodology of Positive Economics,” Essays in Positive EconomicsJohn C. Harsanyi (1987), “Value judgments,” The New Palgrave: A Dictionary of Economics, v. 4, pp. 792–93Daniel M. Hausman and Michael S. McPherson (1996). Economic Analysis and Moral Philosophy, Cambridge: Cambridge University Press.Phillipe Mongin (2002). “Is There Progress in Normative Economics?” in Stephan Boehm et al., eds., Is There Progress in Economics?, pp. 145-170.Amartya K. Sen (1970), Collective Choice and Social Welfare. “5.3 Basic and Nonbasic Judgments” & “5.4 Facts and Values,” pp. 59–64.Stanley Wong (1987). “Positive economics,” The New Palgrave: A Dictionary of Economics, v. 3, pp. 920–21.Silvestri P. (ed.), L. Einaudi, On Abstract and Historical Hypotheses and on Value judgments in Economic Sciences, Critical edition with an Introduction and Afterword by Paolo Silvestri, Routledge, London – New York, 2017. 

    A Glossary of Political Economy Terms

    by Dr. Paul M. Johnson

    Ceteris paribusLatin expression for “other things being equal.” The term is used in economic analysis when the analyst wants to focus on explaining the effect of changes in one (independent) variable on changes in another (dependent) variable without having to worry about the possible offsetting effects of still other independent variables on the dependent variable under examination. For example, “an increase in the price of beef will result, ceteris paribus, in less beef being sold to consumers.” [Putting aside the possibility that the prices of chicken, pork, fish and lamb simultaneously increased by even larger percentages, or that consumer incomes have also jumped sharply, or that CBS News has just announced that beef prevents AIDS, etc. — an increase in the price of beef will result in less beef being sold to consumers.

  40. Avatar Rich-oparaku chigunyerem chikamnele, 2021/244663 says:

    Ceteris Paribus
    To understand the law of demand, the law of supply, and many other important economic concepts, it’s important that you first understand the term ceteris paribus. Ceteris paribus is the commonly used Latin phrase meaning ‘all other things remaining constant.’ When using ceteris paribus in economics, it is often safe to assume that all other variables, except those under immediate consideration, are held constant.
    Why Is It Important in Economics?
    The concept of ceteris paribus is important in economics because, in the real world, it’s usually hard to isolate all the different variables that may influence or change the outcome of what you are studying and how an individual might make a decision. It’s used in economics to rule out the possibility of other factors changing, which may have an impact on the outcome or decision-making process of individuals.

    For example, in economics, we may say that an increase in the price of beef will decrease the quantity demanded for beef. We often add the phrase or assume, ‘all else constant,’ at the end. Why, you might ask? We know from the law of demand that if the price of beef goes up, less beef will be demanded, all else constant. Now assume we take away the phrase, ‘all else constant.’ It now becomes extremely difficult to study the relationship between price and quantity demanded. We open up the entire world to known and unknown factors that may also affect the demand for beef.

    What if the price of pork or chicken went down? Would some people buy less beef and substitute more pork and chicken? Certainly. What if a new study came out linking red meat to high rates of cancer or diabetes? Could that alone affect the demand for beef? Certainly. How about if the beef industry simply increased advertisements about the benefits of eating red meat? Could a large population increase affect the price and demand for beef? Again, the answers are: certainly!

    I give you all of those other possibilities to show you that if you don’t include or assume the phrase, ‘all else constant,’ in economics, it can be almost impossible to identify the true effect of one variable on another. Or, in this case, the simple relationship between a price change for beef and the corresponding change in quantity demanded for beef.

    In the real world, it may be a combination of several things affecting the demand for beef. But to understand the influence of each one of those factors on price or quantity demanded, we must ignore all the other possibilities. It’s only then that we can see how each variable affects the other without interference of other outside forces.

    Examples of Ceteris Paribus
    Let’s look at a few examples to really drive home the importance of ceteris paribus, ‘all else constant.’
    1)Say over a period of five years, the price of automobiles rises and so does the number of vehicles sold. That seems to violate the law of demand. The law of demand would have us believe that if the price of automobiles rose, the number of vehicles sold should have decreased.
    2) Ceteris paribus stipulates that if other factors remain the same, a decrease in the supply of bread will cause prices to rise.The law of supply and demand: In the law of demand, buyers demand less of an economic good when prices are higher.

    Normative economic analysis refers to the analysis in which we study whether a particular mechanism is desirable or not. In this analysis, we study what ought to be the desired situation or in what ways the economic problems should be solved .Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios.lies on objective data analysis, normative economics heavily concerns itself with value judgments and statements of “what ought to be” rather than facts based on cause-and-effect statements. It expresses ideological judgments about what may result in economic activity if public policy changes are made. Normative economic statements can’t be verified or tested.

    Positive economics is the objective analysis of the economic study. This involves investigating what’s happened versus what is happening, allowing economists to predict what will happen in the future. Positive economics is tangible, so anything that can be substantiated with a fact, such as the inflation rate, the unemployment rate, housing market statistics, and consumer spending are examples of positive economics.
    Difference between normative and positive economic.
    Normative economics aims to determine what should happen or what ought to be.
    While positive economics describe economic programs, situations, and conditions as they exist, normative economics aims to prescribe solutions.
    Normative economics expresses ideological judgments about what may result in economic activity if public policy changes are made.While positive economics is a branch of economics that relies on objective data, normative economics is based on subjective information. The latter is based on value judgments that stem from opinions and personal feelings rather than analysis. Positive economics deals in what is compared to normative economics, which relies on what economic behavior should be.

  41. Avatar EJEM JOHNBOSCO MUNACHISO says:

    NAME: EJEM JOHNBOSCO MUNACHISO
    REG NO : 2021/242708
    DERARTMENT: NURSING SCIENCE
    EMAIL: ejemnadal@gmail.com
    1a] NORMATIVE ECONOMICS: Normative economics is the branch of economics that deals with normative statements, focusing on the idea of fairness and desirability of different economic programs and conditions, considering what is supposed to be. It deals with making value-based judgements and the efficiency. It is prescriptive in nature which gives larger room for disagreements as it is not facts based. It can be termed the “what is branch”.
    Example; saying that government should reduce the cost of education in Nigeria is a normative statement.
    1b] POSITIVE ECONOMICS: Positive economics focus on the description, quantities and direct explanation of economics development and the expectations or associated results, based on facts. It is the study of what actually happens, that is the cause and effect relationship, describing the exact way the economy works. It can be termed the “what is“ branch in economics.
    Example; Reducing the cost of education in Nigeria would reduce the number of school drop outs.
    2] CETERIS PARIBUS: Ceteris paribus literally ‘holding other things constant” is a Latin phrase commonly translated In English as “all things being equal”. In economics ceteris paribus is used to indicate and make assumptions that all other factors remain constant when making arguments about cause and effect relationship.
    Knowing that an outcome may be affected by variety of factors, economists when describing the impact of a factor over another use ceteris paribus to allow other factors to remain constant focusing ob the effect of one.
    Example: An economist in UNN, knowing that some other factors like increase in transportation prices can affect the price charged by shuttle drivers in the school but focusing on the effect of change in fuel price can say “ceteris paribus, decrease in fuel price will reduce the price charged by UNN shuttle drivers.

  42. Avatar Onovo Emmanuel Chimobi 19737311GI says:

    Differences Between Positive and Normative Economics

    Their detailed differences are as follows:

    1. Positivist statements are descriptive, clearly measurable and precise. The statements can be measured against tangible evidence or historical instances and there are no instances of approval-disapproval in positive economics due to the presence of different viewpoints.

    On the other hand, Normative economics is subjective, value-based, and originating from personal perspectives, and viewpoints on decision making. They are rigid and prescriptive in nature, sound authoritarian, and seek “what should be” or “what ought to be.”

    2. The perspective of the positive economics is objective while the normative economics attacks from a subjective perspective: The positive economy is objective in nature as it is fact-based. It’s statements are measurable, can be proved and accessed while normative economics is subjective and steems from the feelings of the individuals when making their decisions.

    The normative economics perspective is based on the subjective point of view. It details the thoughts and perceptions of the individual and from there generates ideas.

    3. Positive economics is scientific in nature while normative economics cannot be scientifically proven: The approach of positive economics is scientific and calculated on a particular economic issue.

    The statement of the positive economist is recorded to make a conclusion. The statements of a positive economist can be tested and proved by comparing it with previous statements or with other records. The statements of a positive economist can be proved and disproved.

    Normative economics on the other hand cannot be provided scientifically, but also provides the same solutions that are based on the personal motives, values and judgement of the individual. The statements of normative economics cannot be proved or disproved.

    4. Positive economics is more calculated in it’s approach as it provides a scientific and calculated analysis of an issue, while normative economics provides such solutions but they are based on personal values: Every statement of an econcomist seeks to reach a conclusion, but they both have their methods of doing this.

    The positivist method can be proved and tested by comparing it to previous statements or records of other economist. Such that, the statements of positive econcomists seek to consider what is actually happening in a country, it helps policymakers to decide whether their proposed action will be able to fulfill our objectives or not, and based on whether they are useful or not, they are then accepted or rejected.

    Normative economists on the other hand cannot be proved and tested comparing it to previous statements. The statement of a normative economist seeks to consider what is happening within the individual, which is the subjective perspective of the economists.

    5. The positive economists seeks to know ‘what is’; while normative economists seeks to know ‘what should be’: The positive economists relies on factual approach, which is also known as what is. The positive economist uses fact that has been postulated, facts that are genuine and ones that have worked either in a nation’s economy or in the general world.

    The normative economists, however, base their approach on things that are yet to be, and what should be. They base their assertions on the internal perspective of the individual. They rely on personal approach rather than data that has been calculated over time.
    Ceteris paribus

    Latin expression for “other things being equal.” The term is used in economic analysis when the analyst wants to focus on explaining the effect of changes in one (independent) variable on changes in another (dependent) variable without having to worry about the possible offsetting effects of still other independent variables on the dependent variable under examination. For example, “an increase in the price of beef will result, ceteris paribus, in less beef being sold to consumers.” Putting aside the possibility that the prices of chicken, pork, fish and lamb simultaneously increased by even larger percentages, or that consumer incomes have also jumped sharply, or that CBS News has just announced that beef prevents AIDS, etc. an increase in the price of beef will result in less beef being sold to consumers.

  43. Avatar Ozongwu Favour Ogochukwu says:

    Question 1.
    It has been argued by many scholars and Economists that positive economics describes and explains various economic phenomena. Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments. In view of these assertions, Below are the analysed differences between between normative economics and positive economics.

    Answers.
    1. Positive economics are based on verifiable facts which can be tested to either be true or false. While, Normative economics are based on values, judgements and non-verifiable opinions of Economists and experts.

    2. While positive economics are factual and descriptive in nature, normative economics are prescriptive in nature.

    3. Statements under positive economics are objective. While under normative economics, statements are subjective.

    Question 2.
    Ceteris paribus is a Latin phrase that generally means “all other things being equal.” In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same. Against this backdrop, lucidly discuss and analyse the concept of Ceteris Paribus in Economics with practical examples.

    Answers.
    By assuming Ceteris Paribus, Economists ignores the relationship between two variables in order to simplify analysis. Which is to say that, all other things ( influencing factors) are held constant.
    The following are well analyzed practical examples of the concept of Ceteris Paribus in economics.

    1. Change in minimum wage: When there is an increase in minimum wage, Ceteris Paribus, there will be a corresponding decrease in the demand for labour. This is because, employers of labour will hire less workers if they have to pay them more.
    Here, the general growth of economy is not considered. When there is a growth in the general economy, industries that rely on the services of artisans tends to boom.
    Relatively, demand for employees has to grow whether or not the wages are higher. Though wages would naturally go up.

    2. Higher taxes: The government receives more money when they tax the people more. In an instance where the rate of income tax increases from 10% to 20%, the government should bring in more money. This is based on Ceteris Paribus, where no other variables change .
    In this case, the impact of this increase on individuals is not put into consideration. And this may lead into more people leaving the country and as such, their contribution to taxes too. Therefore, the economy is a better predictor of how much money the government would receive.

    3. Change in price: If the price of milk increases, people will buy less milk, all things being equal.
    This assumption ignores the relationship between other substitutes like household income, price of other dairy products e.t.c, and noneconomic factors such as preference/choice of individual, the health benefits of milk e.t.c..
    Ceteris Paribus, people will buy less of a product if the price is higher, and buy more if the price is lower.

    4: Change in income: An increase in real income will cause an increase in demand. Whereas, a decrease in real income will cause a decrease in demand, Ceteris Paribus.
    We kept constant all other factors that might lead to a change in demand for a product here.

  44. Avatar Orah kosisochukwu Judith says:

    1. positive economics are statements about economics which can be justified to be correct or not by prove, normative economics is subjective and statements which cannot be supported or disclaimed.

    2. The concept of ceteris paribus comes in play in the relationship between price and quantity demand, stating that if all things being equal when the price of a good increases the quantity demand decreases and when the price of a good decreases the quantity demand increases.

  45. Avatar Orah kosisochukwu Judith says:

    1. positive economics is a stream of economics that focuses on the description, quantification and explanation of economic development and associated phenomena, normative economics is subjective and value judgements, originating from personal perspective or opinions involved in the decision-making process.

    2. The concept of ceteris paribus comes in play in the relationship between price and quantity demand, stating that if all things being equal when the price of a good increases the quantity demand decreases and when the price of a good decreases the quantity demand increases.

  46. Discuss and analyse differences between normative and positive economics
    Normative economics is a concept in economics addressing the issues and topics related to the economy in the presence of sense of judgement that is to say that it is inherently subjective.
    Positive economics is a concept in economics addressing the issues and topics related to the economy in the absence of sense of judgement solely based on facts.

    Differences between normative and positive economics
    Positive economics: talks about facts and existing things.
    Normative economics:talks about fictional and non existing things

    Positive economics:Facts can be verified.
    Normative economics:No facts but economic opinion that is hypothetical.

    Positive economics:You can’t test,prove or disprove it.
    Normative economics:You can’t test nor prove anything

    Lucidly discuss and analyse the concept of ceteris paribus with practical examples
    Ceteris paribus is a latin term meaning all else are equal.It is a concept in which all external factors acting on a variable are unchanged or constant in the testing process of its relationship with other variables.
    It can also be seen as a concept that inculcates the use of probability and tendency knowledge in measuring the cause and effect in a relationship between two economic variables

    Practical examples of ceteris paribus
    If the price of a mobile phone for eg Iphone manufactured by apple company decreases,it is assumed that the demand will increase more.If a 50 percent discount on the base price is discovered by a user,he or she will purchase more than one.

    Presently,the cost of drinking water in Nigeria has risen to 250 in the country’s currency.Nevertheless,people buy it at the same rate they buy before at at a considerably low price.The regular demand supply is still met despite the increase in price.This is owing to the influencing factor of high utility rendered by water to the citizens

  47. Avatar Madu Ugochi Juliet says:

    Name:Madu ugochi juliet
    Faculty:social science
    DepartmentPublic administration and local government
    Reg no:10956654EA
    Level:100
    Course:Economics
    Email:madujuliet34@gmail.com
    Economics as a normative science deals with situations of value,judgment or conditions of what ought to be, e.g Nigerians should create more employment opportunities while positive economy is the objective analysis of the economic study it include checking what happened versus what is happening

    Difference between normative and positive economy:Positive economy is the objective analysis of the economic study,it include checking what happened versus what is happening
    While positive economy describes and explain various economic phenomena,while normative economy for uses on the worth of economic transparency or what should be done,positive economy is an objective stream of economics that depends on fact or what is happening while normative economy includes judgment,or what should be done in the future

    Ceteris perubus is commonly used as phrase for all other things being equal unchanged or constant,it is used as economic to rule out the possibility of ‘there’ factors changing i.e the specific casual relation between two variables

    Practical example of ceteris perubus:If a price of milk drops,the demand for milk will rise,this means that if another factor such as deflation pricing oblective and marketing method do not change,the decrease in the price of milk will lead to an increase in demand for it.

  48. Avatar Enemuo Chinazaekpere Maureen says:

    Name : Enemuo Chinazaekpere Maureen
    Department : Nursing Science
    Level : 100 level
    Reg. No : 2021/243539
    Clearly discuss and analyse the differences between between normative economics and positive economics.
    Positive Economics is a branch of economics that has an objective approach, based on facts. It analyses and explains the casual relationship between variables. It explains people about how the economy of the country operates. It is alternatively known as pure or descriptive economics.
    Positive Economics is when the scientific methods are applied to economic phenomena and scarcity related issues. Statements based on positive economics considers what’s actually occurring in the economy. It helps the policy makers to decide whether the proposed action, will be able to fulfill our objectives or not. In this way, they may accept or reject the statements.

    Normative economics is the economics that uses value judgments, opinions, beliefs. This branch of economics considers values and results in statement that state, “what should be the things”. It incorporates subjective analyses and focuses on theoretical situations.
    Normative economics also known as policy economics, Suggest how the economy ought to operate as it takes into account individual opinions and preferences. Hence, the statements can neither be proven right nor wrong.
    Difference.
    Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    The perspective of positive economics is objective while normative economics have a subjective perspective.
    Positive Economics explains ‘what is’ where as normative economics explains ‘what should be’.

    Discuss and analyse the concept of Ceteris Paribus in Economics with practical example.
    Ceteris Paribus is a Latin phrase that means “all other things being equal”. Experts use it to explain the theory behind laws of economics and nature. It means that something else most of the time, if nothing else changes. It facilitates the study of causative effects among segregated variables.
    The Ceteris Paribus methodology can’t predict absolutes or certainties, but it offers a base knowledge of tendencies or probabilities . Economists may opt to simplify the economic mechanism to explain economic behavior, isolating two or more variables while all others are assumed as Constant, unchanging, or in the state of Ceteris Paribus.
    Examples
    Here is a Ceteris Paribus example to understand the concept better.
    When the price of a certain mobile phone, for example, iPhone manufactured by Apple inc, decreases, it is assumed that its demand will increase more in the market. So, if a customer goes to an Apple Store and finds that iPhones have 50% off on their base price, then one may buy more than one iPhone.
    However, the above Ceteris Paribus assumption does not consider whether everyone can afford iPhone even at a lower price, whether everyone likes iPhones and whether everyone has the actual need for a new iPhone in their lives.
    In thesame way, economists predict that if the price of pizza increases, other variables remain constant and buyers will demand a lesser quantity of pizza. Here, if we consider some unknown factors like if the buyers like to consume pizza and if it gives them a high utility, then they will not give up on the consumption even if prices increase.
    Thus, Ceteris Paribus is a simple tool to assess the relation between demand and supply but only when other factors remain constant

  49. Avatar Abah happiness Alexandra says:

    Name: Abah happiness Alexandra
    Reg no:19743716FJ

    Positive economics explains the various economics phenomena, it is based on facts that cannot be disapproved or approved ,while normative economics emphasis on economics fairness and how it ought to be or should be and clearly based on value judgement.

    ceteris paribus is a Latin word meaning”all things being equal.” in economics it is an indicator that makes one variable equal as another.

  50. Positive economic is the type of economics that one apply to it daily activities and it brings good result,this kind of economics help one to no how to use things,like resources,raw material and most importantly finance, without having a primary knowledge,u can’t run a business or manager
    er a big organization that brings money
    2 normative economics as it name implies is using ur natural wisdom to run daily activities or big business venture

  51. Avatar Raymond Favour Adanna says:

    NAME: RAYMOND FAVOUR ADANNA
    DEPARTMENT: NURSING SCIENCE
    REGISTRATION NUMBER: 2021/243021

    A. Differences Between Normative And Positive Economics.
    1. Positive economics focuses on the stream of consciousness model that uses quantification, description, explanation of economic developments, expectations, and associated phenomena to rely on objective data analysis, associated figures, relevant facts and attempts to establish a cause-and-effect association that helps to test the development of different economic theories. Positivist statements are descriptive, clearly measurable and precise.

    On the other hand, Normative economics is subjective, value-based, and originating from personal perspectives, and viewpoints on decision making. They are rigid and prescriptive in nature, sound authoritarian, and seek “what should be” or “what ought to be.”

    2. The perspective of the positive economics is objective while the normative economics attacks from a subjective perspective: The positive economy is objective in nature as it is fact-based. It’s statements are measurable, can be proved and accessed while normative economics is subjective and steems from the feelings of the individuals when making their decisions.

    The normative economics perspective is based on the subjective point of view. It details the thoughts and perceptions of the individual and from there generates ideas.

    3. Positive economics is scientific in nature while normative economics cannot be scientifically proven: The approach of positive economics is scientific and calculated on a particular economic issue.

    The statement of the positive economist is recorded to make a conclusion. The statements of a positive economist can be tested and proved by comparing it with previous statements or with other records. The statements of a positive economist can be proved and disproved.

    Normative economics on the other hand cannot be provided scientifically, but also provides the same solutions that are based on the personal motives, values and judgement of the individual. The statements of normative economics cannot be proved or disproved.

    4. Positive ecoonomics is more calculated in it’s approach as it provides a scientific and calculated analysis of an issue, while normative economics provides such solutions but they are based on personal values: Every statement of an econcomist seeks to reach a conclusion, but they both have their methods of doing this.

    The positivist method can be proved and tested by comparing it to previous statements or records of other economist. Such that, the statements of positive econcomists seek to consider what is actually happening in a country, it helps policymakers to decide whether their proposed action will be able to fulfill our objectives or not, and based on whether they are useful or not, they are then accepted or rejected.

    Normative economists on the other hand cannot be proved and tested comparing it to previous statements. The statement of a normative economist seeks to consider what is happening within the individual, which is the subjective perspective of the economists.

    5. The positive economists seeks to know ‘what is’; while normative economists seeks to know ‘what should be’: The positive economists relies on factual approach, which is also known as what is. The positive economist uses fact that has been postulated, facts that are genuine and ones that have worked either in a nation’s economy or in the general world.

    The normative economists, however, base their approach on things that are yet to be, and what should be. They base their assertions on the internal perspective of the individual. They rely on personal approach rather than data that has been coalated overtime.

    6. Positive economists seeks to check the cause and outcome among variables, while normative economics seeks to provide value judgement: The positive economists is used to describe the main issue of the economy and explains the cause and effect relationship between variables by stating the facts or happening in the economy. It uses actual and real-life situations of the economy to postulate the future trend and movement of the economy.

    On the other hand, the normative economy uses real-life actions to pass solutions to the economy and provide a solution to the problems and passes value conclusion.

    7. The positive view presents actual data that is possible in the future, while the normative view presents statements that may or may not be possible in the future: It comes from previously recorded facts, statistics and data that has been provided over the years, and it predicts things that are possible in the future, that’s why many economists base their decisions on the positivists school of thought.

    The normative view isn’t the best view in this scenario because, in most cases, it doesn’t have credible data to back its statements up. It is narrow, not fact based, and is based on the value and beliefs of others, so therefore it doesn’t predict things that are possible in the future, and is not a popular and well followed school of thought.

    B. The Concept Of Ceteris Paribus In Economics With Practical Examples

    Ceteris Paribus stands for ‘all other things being equal’. It is used in economics to rule out the possibility of ‘other’ factors changing, i.e. the specific causal relation between two variables is focused. For example: if the price of fresh tomatoes increases, less fresh tomatoes will be purchased. This shows that people buy less when the price goes high and buy more when the price decreases.

    When the price of a certain mobile phone, for example, iPhone manufactured by Apple Inc., decreases, it is assumed that its demand will increase more in the market. So, if a customer goes to an Apple store and finds that iPhones have 50% off on their base price, then one may buy more than one iPhone.

    However, the above ceteris paribus assumption does not consider whether everyone can afford iPhones even at a lower price, whether everyone likes iPhones, and whether everyone has the actual need for a new iPhone in their lives.

    In the same way, economists predict that if the price of pizza increases, other variables remain constant, and buyers will demand a lesser quantity of pizza. Here, if we consider some unknown factors like if the buyers like to consume pizza and if it gives them a high utility, then they will not give up on the consumption even if prices increase.

    Thus, ceteris paribus is a simple tool to assess the relation between demand and supply, but only when other factors remain constant.

  52. Avatar Obute Adaora Rachael says:

    MEANING OF POSITIVE AND NORMATIVE ECONOMICS (CETERIS BARIBUS).

    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness.
    In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.Well, this was only a preface about the entire discussion. We will look forward to discussing ‘What is Positive and Normative Economics?’,

    What is Positive Economics?
    Positive economics is the stream of economics that has an objective approach, relied on facts. It concentrates on the description, quantification, and clarification of economic developments, prospects, and allied matters. This subdivision of economics relies on objective data analysis and relevant facts and figures. Therefore, it tries to establish a cause-and-effect relationship or behavioral relationship that can help determine as well as test the advancement of economic theories.
    Here, the study of economics is more objective and focuses more on facts. Moreover, the statements are precise, descriptive, and measurable. Such reports can be quantified with respect to noticeable evidence and historical references.A positive economics example is a statement, “Government-funded healthcare surges public expenditures.” This statement is based on facts and has a considerable value judgment involved in it. Therefore, its credibility can be proven or dis-proven via a study of the government’s involvement in healthcare.

    What is Normative Economics?
    Normative economics deals with prospective or theoretical situations. This division of economics has a more subjective approach. It focuses on the ideological, perspective-based, opinion-oriented statements towards economic activities. The aim here is to summarise the desirability quotient among individuals and quote factors like ‘what can happen’ or ‘what ought to be’.Normative economics statements are subjective and rely heavily on values originating from an individual opinion. These statements are often very rigid and perceptive. Therefore, they are considered political or authoritarian. A normative economics example is, “The government should make available fundamental healthcare to every citizen”. You can understand that this statement is based on personal perspective and satisfies the need for ‘should be’ or ‘ought to be’.

    Difference Between Positive and Normative Economics
    Positive and Normative Economics do have some underlying differences between them. We will analyze the differences between them in terms of meaning, perspective, function, area of study, testing, economical clarification.

    MEANING:Positive economics means more focus on data, facts, and figures rather than personal perspectives. The statements here are to the point and supported by relevant information. On the other hand, normative economics focuses more on personal perspectives and opinions rather than facts and figures. Here the statements are based on an individual’s point of view, and ample data is always available to support such claims.

    PERSPECTIVE:The perspective of these two concepts is a significant point of difference between them. Positive economics is objective, whereas normative economics is subjective. The focus of positive economics is on presenting relevant and more focused statements backed by actual data.Contrarily, normative economics focuses on presenting statements that may or may not be possible in the future. Moreover, in some cases, such statements do not have any credible data to back them up.

    FUNCTION:Their functions can distinguish between positive and normative economics. Positive economics describes the cause and outcome of the relationship among variables. On the other hand, normative economics provides value judgment.

    AREA OF STUDY: Positive economics is the study of ‘what is’; whereas normative economics describes ‘what should be’. One branch relies on a factual approach supported by data. Contrarily, normative economics relies more on personal opinions rather than actual data.

    TESTING:Every statement of positive economics can be tested scientifically and either proven or disregarded. However, normative economics statements cannot be tested scientifically. It entirely depends on the belief of an individual.

    ECONOMICAL CLARIFICATION:Positive economics provides a more scientific and calculated clarification on an economic issue. However, normative economics also provides such solutions but ones that are based on personal values.

    EXAMPLES OF POSITIVE ECONOMICS

    1)The desired rate of return on gambling stocks are higher compared to others
    2)The relationship between wealth and demand is inverse in the case of inferior goods
    3)House prices reduce once the interest rate on loans get higher
    4)Car scrappage schemes can result in a fall in the prices of second-hand cars

    Examples of Normative Economics –
    1)The government should implement strict wealth tax laws to decrease the uneven distribution of wealth.
    2)No individuals should be entitled to inheritances as it belongs to society.
    3)Import duties should be increased on goods coming from nations with humble human rights record
    4)Investors ought to be more socially responsible and stop investing in vice versa
    5)Developing countries should only accept democracy when their entire population is educated and liberated

    IMPORTANCE OF POSITIVE AND NORMATIVE TYPES OFECONOMICS
    Even though normative economics is a subjective study, it acts as a base or a platform for out-of-the-box thinking. These concepts will provide a basic foundation for the innovative ideas that will ignite to reform an economy.However, all the decisions cannot rely on them altogether. On the other hand.
    Positive economics is needed to provide an objective approach. Positive economics is focused on the facts and analyses of the effects of such decisions in society and thereby it helps by providing a statement that comprises the necessary information to make a sound economic decision. Normative economics is thus useful in creating and generating newer ideas from another or different perspectives, also note it cannot be the only basis for making decisions on important economic issues, and here the positive economics come into action thus complementing each other.
    So, Positive economic theory can help the economic policymakers to implement the normative value judgments. Like – it can describe how the government is in power to impact inflation by printing more money or restructuring the banking reforms, this economics can support that statement with strong facts and analysis with relationships between inflation and growth in the money supply of an economy.

  53. Avatar ONYISHI HENRY CHIBUZO. REG:2021/241450.PALG says:

    (1). It has been argued by many scholars and Economists that positive economics describes and explains various economic phenomena. Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.Difference Between Positive and Normative Economics
    positive vs normative economics is a science as well as art. But which type of science is a big question here, i.e. positive or normative? Positive economics is related to the analysis which is limited to cause and effect relationship. On the other hand, normative economics aims at examining real economic events from the moral and ethical point of view. It is used to judge whether the economic events are desirable or not.positive vs normative Economics is a science as well as art. But which type of science is a big question here, i.e. positive or normative? Positive economics is related to the analysis which is limited to cause and effect relationship. On the other hand, normative economics aims at examining real economic events from the moral and ethical point of view. It is used to judge whether the economic events are desirable or not. While Positive economics is based on facts about the economy. Normative economics is value judgment based. Most of the people think that the statements which are commonly accepted are a fact but in reality, they are valued. By, understanding the difference between positive and normative economics, you will learn about how the economy operates and to which extent the policy makers are taking correct decisions. (2) What is Ceteris Paribus. Definition: This commonly-used phrase stands for ‘all other things being unchanged or constant’. It is used in economics to rule out the possibility of ‘other’ factors changing, i.e. the specific causal relation between two variables is focused.A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.examples,

  54. Discuss and analyse the differences Discuss and analyse the differences between normative and positive economics
    Normative economics is a branch of economics incorporating subjective approach of analysis based on value judgements,opinions and beliefs in statents stating “what should be the things” that focuses on theoretical solutions. It considers individual opinions and preferences hence statements can neither be proven right or wrong.It is also known as policy economics
    Positive economics is a branch of economics incorporating objective approach of analysis based on facts explaining casual relationship between variables.Statements related to the occurances in the economy are considered thereby helping policy makers decide whether the proposed action will fulfill the objectives. Acceptance and rejection of statements is permitted

    Differences between normative and positive economics

    Normative Positive economics
    Economics
    Based on opinions, Based on data and
    judgements and facts
    Values

    Prescriptive in descriptive in
    nature. nature

    Subjective. Objective

    What ought to. What actually is
    be

    No Scientific scientific testing
    testing Of of statements
    statements.

    Discuss and analyse the concept of ceteris paribus in economics with practical examples
    Ceteris paribus is a latin word meaning “other things being equal”.In regards to economics,it means the state in which influencing factors or variables are constant or equal OR all other factors not being considered or considered to be constant.
    For eg:
    According to ceteris paribus,if coca cola falls its demand will increase.Pepsi may react and change their prices as well.In other words it means the demand remains unchanged. Alternatively Coca cola may have to compromise the quality of their ingredients to reduce their prices leading to a decline in demand over long term.
    Also,If United States drill more oil domestically there would be more
    supply of gasoline hence dropping the price of gas
    It is known as natural law.There is no law that defines that it would happen.Its simply an assumed outcome based on how variables interact or flow together

    normative and positive economics
    Normative economics is a branch of economics incorporating subjective approach of analysis based on value judgements,opinions and beliefs in statents stating “what should be the things” that focuses on theoretical solutions. It considers individual opinions and preferences hence statements can neither be proven right or wrong.It is also known as policy economics
    Positive economics is a branch of economics incorporating objective approach of analysis based on facts explaining casual relationship between variables.Statements related to the occurances in the economy are considered thereby helping policy makers decide whether the proposed action will fulfill the objectives. Acceptance and rejection of statements is permitted

    Differences between normative and positive economics

    Normative Positive economics
    Economics
    Based on opinions, Based on data and
    judgements and facts
    Values

    Prescriptive in descriptive in
    nature. nature

    Subjective. Objective

    What ought to. What actually is
    be

    No Scientific scientific testing
    testing Of of statements
    statements.

    Discuss and analyse the concept of ceteris paribus in economics with practical examples
    Ceteris paribus is a latin word meaning “other things being equal”.In regards to economics,it means the state in which influencing factors or variables are constant or equal OR all other factors not being considered or considered to be constant.
    For eg:
    According to ceteris paribus,if coca cola falls its demand will increase.Pepsi may react and change their prices as well.In other words it means the demand remains unchanged. Alternatively Coca cola may have to compromise the quality of their ingredients to reduce their prices leading to a decline in demand over long term.
    Also,If United States drill more oil domestically there would be more
    supply of gasoline hence dropping the price of gas
    It is known as natural law.There is no law that defines that it would happen.Its simply an assumed outcome based on how variables interact or flow together

  55. Department: Nursing Science
    1. In view of these assertions, clearly discuss and analyse the differences between between normative economics and positive economics.
    Normative economics is the economics based on opinions or beliefs that supoort value judgement with respect to the betterment of the economic future of a nation while Positive economics,on their other hand, concerns the present conditions in the economics of a nation and the world at large.
    In normative economics, it is fictional while positive economics is backed up by data and verifiable facts; things that exist in the world economy. Normative economics is subjective and can never be tested because its accuracy is proveable. While in positive economics,it is based on objective analysis in the sense that it can be tested theoretically or in practice, even if they may not necessarily be true.
    Normative economics is based in providing solutions based on value conclusion; it considers the future of the economy while positive economics discusses the economic issue and is concerned with the present economy.
    According to Amy Fontinelle, Normative economics is considered the branch of economics that tries to determine the desirability of different economic programs and conditions by asking what “should” or what “ought” to be while Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economic theories.
    2. Against this backdrop, lucidly discuss and analyse the concept of Ceteris Paribus in Economics with practical examples.
    Centeris Paribus, which is Latin ,for “all other things being equal” or “holding other factors constant” the term is concerned with effect of one variable or another. This concept allows economists to explore multiple variables. It helps the economists circumvent human nature and the problems of limited knowledge which therefore allows economists to devise scenarios that would ordinarily not exist(Liberto, D.).
    An example of a relationship involving Centeris Paribus is rent control and housing supply where an increase in the rent would bring about a decrease in housing supply, holding other factors constant.
    Another example is the relationship between currency supply and inflation. In a case where the production of money is faster than the output, inflation sets in, centeris paribus.
    The law of supply which states that an increase in the price of a commodity will result in the increase in the quantity of product supplied, centeris paribus. For example, if the price of sugar goes up, the quantity of demand of sugar will as well rise, all things being equal.

  56. Discuss and analyse the differences between normative and positive economics
    Normative economics is a concept in economics addresing issues and topics related to the economy in the presence of sense of judgement that is to say that it is inherently subjective
    Positive economics is a concept in economics addressing the issues and topics in absence of sense of judgement solely based on facts that is to say that it is objective in regards 5o the method of approach

    Positive economics Normative
    economics
    Talks about existing Talks about
    things. fictional things

    Facts can be verified. No facts but
    economic opinion
    You can test,prove You can’t test nor
    or disprove it prove

    Discuss and analyse the concept of ceteris paribus with practical examples
    Ceteris paribus is a latin term meaning “all else are equal”.Ceteris paribus is a concept in which
    the external factors acting on a variable are said to be in unchanged or constant in the testing process of its relationship with other variables OR a concept that inculcates the use of probability and tendency knowledge to measure the cause and effect in a relationship between two economic variables.

    Practical examples of ceteris paribus

    When the price of a mobile phone eg Iphone produced by apple company decreased,it is assumed that it’s demand will increase more. If a customer discovers 50 percent discount on the base price,he or she will purchase more than one from the Apple store

    Currently,the cost of drinking water has risen to 250 in Nigerian currency. Nevertheless,people still buy it at the same rate they buy in the past when the price was considerably low. They still meet the same demand supply despite the increase in price due to the influencing factor of high utility rendered by the water to the consumers

  57. Avatar IGBO OGECHUKWU NNAMDI says:

    Name : IGBO OGECHUKWU NNAMDI
    REG. NO: 2021/244497
    Faculty: Health science and technology
    Department: Nursing science
    Ceteris Paribus is a phrase used in economics that makes economic analysis simpler. In essence, Ceteris Paribus means ‘other things equal’. With regards to economics, it assumes that other influencing factors are held constant
    Ceteris paribus is where all other variables are kept equal. For example, if the price of Coca-Cola falls, ceteris paribus, its demand will increase. Ceteris paribus means that other factors are not considered, or are considered to remain constant. Pepsi may react and reduce their prices as well, which may mean demand remains unchanged.
    Alternatively, Coca-Cola may have to compromise on the quality of their ingredients to reduce prices. In turn, this may lead to a decline in demand over the long-term. So, in conclusion, ceteris paribus is the simplification of an economic argument.
    Usually, ceteris paribus is applied because there are many unknown factors or factors that cannot be considered accurately into the equation. By keeping other variables constant, we are able to make some form of analysis.
    Examples of where ceteris paribus is involved include interest rates, the minimum wage, and higher taxes. When examining each of those, economists must often assume ceteris paribus in order to create some meaningful insight – due to the complexity and number of other variables.
    1.0 Interest Rates:When the interest rate increases (ceteris paribus), demand for debt goes down, as the cost of borrowing increases. What is not considered is the wider economy. For instance, if businesses are doing well and looking to expand, an increase in the interest rate is unlikely to hold them back from borrowing.
    2.0 Minimum Wage:When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.
    What is not considered is the growth of the economy. When the wider economy is growing, we see industries that rely on minimum wage employees’ boom. For example, restaurants, retail, and fast food tend to see a pickup in demand as consumers eat out and spend more.
    3.0 Higher Taxes:If the government taxes people more, it receives more money. For instance, if the rate of income tax goes from 20 percent to 25 percent, the government should bring in more money. This is based upon ceteris paribus, where no other variables change.What is not considered is the impact on individuals, particularly rich individuals. They may leave the country altogether and what they contribute in taxes as well.

  58. 1. Positive and normative economics differ in their approach towards economic situations.
    Positive economics is the objective analysis of economics. It is an investigative process that helps understand what is currently happening or has happened in an economy to form the basis of predictions for the future. This part of economics relies on factual data based on which verifiable conclusions can be drawn. It talks about facts that can be either be proven or disapproved.
    Normative economics on the other hand is not based on facts and is rather based on the ideological principle that expresses the conditions of the economy whenever public policy changes are made.This is a study related to what should happen instead of what is currently happening. This part of economics deals with normative statements and focuses on the idea of fairness. Since it is an opinion-based analysis, it is affected by the value judgments. In normative economics, outcomes are assessed as either good or bad. Due to the nature of this part of economics, there is no method to prove or disprove an opinion.
    2. Ceteris paribus means all external factors acting on a variable subject are assumed to remain unchanged/constant while testing its relationship with other variable subjects. Economists use it for confirmation of a theory in economics. It measures the cause and effect in a relationship between two separate economic variables using probability and tendency knowledge. For example,if the researcher wants to see what will happen to the demand of a certain product if its price rises, then here the researcher might say that the demand will decrease by taking all other factors like purchaser’s income, purchaser’s taste, and preferences and so on as constant. The concept of ceteris paribus actually made these relationships simpler to understand and predict future patterns.
    Another example of ceteris paribus: price, that directly impacts the connection between two variables like supply and demand. The price factor can associate multiple variables responsible for the change in demand for a commodity. Likewise, supply always increases when the demand for a product rise, provided other things like input cost, wages, and taxes remain the same. Thus, ceteris paribus comes into play, and one can say that supply falls whenever demand falls.

  59. Avatar Ede Nwachukwu 2021/242709 says:

    Positive economics focuses on defining various economic phenomena while Normative economics thrives on economic fairness or what the economy “should be”/ “ought to be”

    Ceteris Paribus generally means “that all else is constant and unchanging”. It is used to eliminate the possibility that “other” factors may change, or to focus on a particular relationship between two variables.
    An example of Ceteris Paribus in economics is “On the off chance that the cost of rice falls, ceteris paribus, the request for rice will rise.” This implies that, in case other components, such as deflation, estimating targets, utility, and promoting strategies, don’t change, the diminish within the cost of rice will lead to an increment in request for it.

  60. Avatar Ejiofor Hilda Onyinyechi says:

    Name: Ejiofor Hilda Onyinyechi
    Reg no: 2021/243541
    Department: Nursing Science
    Faculty: Health Science

    Normative Economy
    Normative economics aims to determine people’s desirability or the lackthereof to various economic programs, situations, and conditions by asking what should happen or what ought to be. Therefore, normative statements typically present an opinion-based analysis in terms of what is thought to be desirable. For example, stating that the government should strive for economic growth of x% or inflation of y% could be seen as normative. Behavioral economics has also been accused of being normative in the sense that cognitive psychology is used to steer (“nudge”) people to make desirable decisions by engineering their choice architecture.
    As positive economics describe economic programs, situations, and conditions as they exist, normative economics aims to prescribe solutions. Normative economic statements are used to determine and recommend ways to change economic policies or to influence economic decisions.
    Normative economics looks at how the economy should be or should have been rather than how it actually is or was – it suggests policies for improving economic welfare. Normative means relating to an ideal model or standard, or based on what is considered to be the correct or normal way of doing something. It is a part of economics that expresses value (normative judgments) regarding economic fairness, or what the economic outcome or goals of public policy ought to be. According to the Economist’s glossary of terms, normative economics is: “Economics that tries to change the world, by suggesting policies for increasing economic welfare. The opposite of positive economics, describe the world as it is, rather than prescribe ways to make it better.”
    Positive Economics
    The term positive economics refers to the objective analysis in the study of economics. Most economists look at what has happened and what is currently happening in a given economy to form their basis of predictions for the future. This investigative process is positive economics. Conversely, a normative economic study bases future predictions on value judgments.
    Positive economics is an objective stream of economics that relies on facts or what is happening. Conclusions drawn from positive economics analyses can be tested and backed up by data. Positive economic theory does not provide advice or instruction. Statements based on normative economics include value judgments or what should be in the future. Positive economics and normative economics can work hand in hand when developing policy.
    Normative economics contrasts with positive economics, which aims to describe the economic world as it really is, instead of trying to prescribe ways to improve it. The normative economist tries to determine the desirability-undesirability of various economic conditions, situations or programs by asking the question: “What ought to or should be/have been?” The positive economist asks: “What is/was/has been?” While positive economics gathers and analyzes real data – about things that happen or have happened – normative economics relies heavily on value judgments and theoretical scenarios that present subjective results, i.e. how things should be or should have been. Normative economics tells us what things would be like or would have been like if public policy were or had been different.
    Ceteris Paribus
    A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.,
    In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect. An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease.
    Ceteris paribus assumptions help transform an otherwise deductive social science into a methodologically positive “hard” science. It creates an imaginary system of rules and conditions from which economists can pursue a specific end. Put another way; it helps the economist circumvent human nature and the problems of limited knowledge. Most, though not all, economists rely on ceteris paribus to build and test economic models. In simple language, it means the economist can hold all variables in the model constant and tinker with them one at a time. Ceteris paribus has its limitations, especially when such arguments are layered on top of one another. Nevertheless, it is an important and useful way to describe relative tendencies in markets.
    Application of ceteris paribus
    Supply and Demand
    As an example, take the laws of supply and demand. Economists say the law of demand demonstrates that ceteris paribus, more goods tend to be purchased at lower prices. Or that, if demand for any given product exceeds the product’s supply, ceteris paribus, prices will likely rise. In this situation, the price of an item is the only variable that should change. All else should remain ceteris paribus. If only the price were to change, we can appropriately forecast the outcome because of the laws of supply and demand.

    Supply Chain
    There are a tremendous amount of factors that go into a unit’s production. This includes delivery of raw materials, labor hours, equipment availability, ingredient pricing, packing and delivery, or distribution. Therefore, when considering how an item may move throughout the supply chain process, economists may make claims on outcomes assuming all other variables are constant. For example, ceteris paribus, higher raw material prices will decrease manufacturing supply if companies don’t increase their production budgets. This claim does not consider labor hours, packaging, or delivery.

  61. Avatar Umehonyefosim mercy chinelo says:

    Department: combine social science (economics and psychology)
    Course code:Eco 101

  62. Avatar Ugwoke Richard Nwachukwu says:

    Positive economics is a branch of economics that has an objective approach based on facts. It analyses and explains the casual relationship between variables. When the scientific methods are applied to economic phenomena and scarcity related issues, it is positive economics. Statements based on positive economics considers what’s actually occurring in the economy.
    On the other hand, the economics that uses value judgement, opinions, belief is called normative economics. This branch of economics considers values and results in statements that states, ‘what should be the things’. It incorporates subjective analysis and focuses on theoretical situations. Normative economics suggests how the economy ought to operate. It takes into account individual opinions and preferences.
    In summary, positive economics refers to a science which is based on data and facts while normative economics is a science based on opinions, values and judgement. Positive economics is descriptive but normative economics is prescriptive.

    CETERIS PARIBUS

    The concept of ceteris paribus is important in economics because, in the real world, it’s usually hard to isolate all the different variables that may influence or change the outcome of what you are studying and how an individual might make a decision. It’s used in economics to rule out the possibility of other factors changing which may have an impact on the outcome or decision-making process of individuals.
    E.g= say over a period of five years, the price of automobiles rises and so does the number of vehicles sold. That seems to violate the law of demand. The law of demand would have us believe that if the price of automobiles rose, the number of vehicles sold should have decreased.

  63. Avatar Anuka Daberechi Precious says:

    Name: Anuka Daberechi Precious
    Reg.No: 2021/242707
    Dept: NURSING
    Email: preshdabby2021@gmail.com
    DIFFERENCE BETWEEN POSITIVE AND NORMATIVE ECONOMICS:
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    What is Positive Economics?
    Positive economics is the stream of economics that has an objective approach, relied on facts. It concentrates on the description, quantification, and clarification of economic developments, prospects, and allied matters. This subdivision of economics relies on objective data analysis and relevant facts and figures. Therefore, it tries to establish a cause-and-effect relationship or behavioral relationship that can help determine as well as test the advancement of economic theories.
    Here, the study of economics is more objective and focuses more on facts. Moreover, the statements are precise, descriptive, and measurable. Such reports can be quantified with respect to noticeable evidence and historical references.
    A positive economics example is a statement, “Government-funded healthcare surges public expenditures.” This statement is based on facts and has a considerable value judgment involved in it. Therefore, its credibility can be proven or dis-proven via a study of the government’s involvement in healthcare.
    What is Normative Economics?
    Normative economics deals with prospective or theoretical situations. This division of economics has a more subjective approach. It focuses on the ideological, perspective-based, opinion-oriented statements towards economic activities. The aim here is to summarize the desirability quotient among individuals and quote factors like ‘what can happen’ or ‘what ought to be’.
    Normative economics statements are subjective and rely heavily on values originating from an individual opinion. These statements are often very rigid and perceptive. Therefore, they are considered political or authoritarian. A normative economics example is, “The government should make available fundamental healthcare to every citizen”. You can understand that this statement is based on personal perspective and satisfies the need for ‘should be’ or ‘ought to be’.
    Difference Between Positive and Normative Economics:
    1. Positive economics means more focus on data, facts, and figures rather than personal perspectives. The statements here are to the point and supported by relevant information. On the other hand, normative economics focuses more on personal perspectives and opinions rather than facts and figures. Here the statements are based on an individual’s point of view, and ample data is always available to support such claims.
    2. Their functions can distinguish between positive and normative economics. Positive economics describes the cause and outcome of the relationship among variables. On the other hand, normative economics provides value judgment.
    3. Positive economics is the study of ‘what is’; whereas normative economics describes ‘what should be’. One branch relies on a factual approach supported by data. Contrarily, normative economics relies more on personal opinions rather than actual data.
    4. The perspective of these two concepts is a significant point of difference between them. Positive economics is objective, whereas normative economics is subjective. The focus of positive economics is on presenting relevant and more focused statements backed by actual data. Contrarily, normative economics focuses on presenting statements that may or may not be possible in the future. Moreover, in some cases, such statements do not have any credible data to back them up.
    5. Positive economics provides a more scientific and calculated clarification on an economic issue. However, normative economics also provides such solutions but ones that are based on personal values.

    2. CONCEPT OF CETERIS PARIBUS IN ECONOMICS AND EXAMPLES:
    Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”
    In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect. An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one.
    Examples:
    Suppose that you wanted to explain the price of milk. With a little thought, it becomes apparent that milk costs are influenced by numerous things: the availability of cows, their health, the costs of feeding cows, the amount of useful land, the costs of possible milk substitutes, the number of milk suppliers, the level of inflation in the economy, consumer preferences, transportation, and many other variables. So an economist instead applies ceteris paribus, which essentially says if all other factors remain constant, a reduction in the supply of milk-producing cows, for example, causes the price of milk to rise.

  64. Avatar ORJI EVAN CHINAZA says:

    UNIT:ECONOMICS EDUCATION
    MATRIX NO:2021/242394
    DEPARTMENT:SOCIAL SCIENCE EDUCATION

    Normative and positive economics are known as the two arms of economics.Positive economics describes and explains various economic phenomena.while normative economics does not.
    Positive economics makes use of data,facts and figures while normative does not.

    Normative economics is subjective while positive economics is objective.
    Normative economics focuses more on personal perspectives and opinions,that is how economics should or ought to be.

    Ceteris paribus which we all know “all things being equal” is a Latin word ,because we may have come across it in one way or the other,in our primary schools which is home economics,and in our secondary schools as economics.
    In economics it is used in the law of supply which States that,the higher the price the higher the quantity supplied, but the lower price the lower the quantity supplied “all things being equal” and also applied in the law of demand.

  65. Avatar Ononuju uchenna Esther says:

    What Is Normative Economics?
    Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarioNormative economics aims to determine people’s desirability or the lack thereof to various economic programs, situations, and conditions by asking what should happen or what ought to be. Therefore, normative statements typically present an opinion-based analysis in terms of what is thought to be desirable. For example, stating that the government should strive for economic growth of x% or inflation of y% could be seen as normative.
    IMPORTANCE OF NORMATIVE ECONOMICS
    Normative economics is important because it can help determine people’s desire for various economic situations. It allows those in leadership positions to better understand others’ economic preferences and how the public may react to their decisionsNormative Decision Making:
    The normative approach to decision making predicts the outcomes of taking an option by factoring in assumptions to determine if it leads to optimal results. It is value-based and objective.

    Answer and Explanation:
    This approach is advantageous in that it offers prescriptive pragmatics for maximizing the utility of options. It provides rational standards for cultural behavior via objective, numerical data, and thus yields the benefits of well-executed game theory. This approach exploits the practical nature of data, and its proponents rely on analysis software and models to determine metrics regarding marginal costs, inventory and pricing.

    This approach presents some minor disadvantages. Decision-makers often rely on assumptions and operate under incomplete knowledge. For example, the Dupont analysis does not inform investors of the opportunity costs involved when evaluating profitability.
    POSITIVE ECONOMICS

    ‘Positive economics’ refers to the view that economic theories consistent with all conceivable observations are empirically empty and that empirically useful theories need to be consistent with existing observations (thus passing the ‘sunrise test’) and predict something new. It is neither logical positivist, nor operationalist, nor naïve falsificationist; nor is it based on strict dichotomies between positive and normative statements and between positive analysis and normative advice. It rejects the views that theories can assist understanding the world without making refutable statements about it; that theories can be criticized only on their own terms; and that all distinctions inhibit useful.

    Milton Friedman’s book Essays in Positive Economics (1953) is a collection of earlier articles by the author with as its lead an original essay “The Methodology of Positive Economics.” This essay posits Friedman’s famous, but controversial, principle (called the F-Twist by Samuelson) that assumptions need not be “realistic” to serve as scientific hypotheses; they merely need to make significant predictions.

    Definition
    What is Ceteris Paribus
    Definition: This commonly-used phrase stands for ‘all other things being unchanged or constant’. It is used in economics to rule out the possibility of ‘other’ factors changing, i.e. the specific causal relation between two variables is focused.

    Description: This Latin phrase is generally used for saying ‘with other things being the same’. It is particularly crucial in the study of cause and effect relationship between two specific variables such that other relevant factors

  66. Avatar Jumbo Princess Omezikam says:

    Difference Between Positive and Normative Economics
    Positive economics is entirely based on facts which means it explains topics and issues related to the economy without judging them. At the same time, normative economics is merely based on values. Moreover, it is inherently subjective, which means it does not just explain issues and topics concerned with economics but also judges them.

    Economics is both science and art. And it is not only limited to fact or fiction. It is a combination of both.WallStreetMojo
    Home » Investment Banking Resources » Economics Resources » Positive vs Normative Economics
    Positive vs Normative Economics

    Normative Economics
    Positive economics is entirely based on facts which means it explains topics and issues related to the economy without judging them. At the same time, normative economics is merely based on values. Moreover, it is inherently subjective, which means it does not just explain issues and topics concerned with economics but also judges them.
    Positive economics talks about things that exist. They are facts that can be verifiable. You can prove it or disprove it. You can test it and find out whether these statements mentioned under positive economics
    are true or untrue.
    But normative economics is fiction. They aren’t facts; rather, they are economists’ opinions who tell us what they think. It can be true for some and false for some. And these statements mentioned under normative economics
    aren’t verifiable. They can’t be tested
    Question 2;
    All things being equal, if the price of milk increases, people will buy less milk. This assumption ignores how other substitutes are behaving, how household income is behaving, or non-economic factors such as the health benefits of milk. Ceteris paribus, people will buy less of a product if the price is higher.
    Reg number : 2021/244668

  67. Avatar Ugwu ifeoma promise says:

    NAME: UGWU IFEOMA PROMISE
    DEPARTMENT: NURSING SCIENCE
    REG NO: 10729560JB

    1.Positive Economics :Positive economics talks about various economic phenomena. It refers to objective analysis in the study of economics. It deals with the present economy, like whatever presently happening in the country is a part of positive economics.Positive economics relies on the facts and factual data. There are no assumptions made in positive economics. Positive economics can be tested and backed up by data. It is concerned with describing and explaining an economic process. While;Normative Economics :Normative economics is another branch of economics based on objective analysis and it is concerned with “what ought to be.” In other words, it reflects the opinions and theoretical situations than actual facts.In normative economics, people state their opinions and judgments without considering the facts. They make distinctions between good and bad policies and the right and wrong courses of action by using their judgments.

    2.Ceteris paribus: literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”
    It acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant).Examples:If the price of milk increases, people will buy less milk. When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.

  68. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful. Reg number:2021/242480 department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  69. Avatar Eya Vivian chinazaekpere, Reg:2021/243507, Dept:: Nursing science says:

    1: Normative economics refers to the beliefs that supports the valued judgement which is better for nation’s economic future and social welfare.It means the issues that involves value judgement or opinion.Example includes how the economy can be distributed evenly among citizens of a country.WHILE ,a Positive economics looks at the economic issues that can be studied by looking at the verifiable facts , that is what happens in the society.Example is the law of demand which states that the higher the price of a product, the lower the demand for that particular product and the lower the price of a product the higher the demand for that particular product.

    2: Ceteris paribus is an economics term which simply means “all things being equal,”It is a term used to rule out the possibility of other factors changing, that is, the specific casual relation between two variables is focused. It was used in economics contexts by Petrus Olivi in 1295 and also in the 16th century by Juan De Medina and Luis De Molina while discussing economics issues. Example of “Ceteris paribus”is the law of supply.
    Law of supply : It states that the higher the price, the higher the quantity of goods supplied while the lower the price, the lower the quantity of goods supplied.The Ceteris paribus” in the law of supply is the price of product and the quality supplied.

  70. Avatar Obiekwe Geneveive Chidinma says:

    Name: Obiekwe Geneveive Chidinma
    Reg no: 2021/245260
    Department: Nursing science
    Email: obiekwecg@gmail.com

    Normative or welfare economics deals with what ought to be rather than what is and contains prescriptive statements that may be based on value judgement. Having a belief that the income should be distributed evenly in the economy is an example of normative economics.
    Positive economics on the other hand deals with what is, rather than what ought to be. It involves descriptive statements that are objective and verifiable. There is presence of a theory with proven facts and figures that needs to be taken into account before developing the theory. Law of demand is an example of positive economics.

    The Latin term ceteris paribus means “all else being equal” in English. This means that single variables are studied to determine their affects on other variables in the consideration that nothing else changes in an effort to identify causal factors. By holding all variables constant, economists are able to experiment with each variable independently to observe how, and to what extent they influence one another. These relative tendencies can then be used to generate assumptions about what can be expected in the future, assuming nothing unforeseen occurs (ceteris paribus). Ceteris paribus is used in economical discussions to show that a change in a variable being observed is in the consideration that nothing else has changed. An example of expressing this in economics would be: If the price of cement increases, ceteris paribus, demand for buildings will decrease and if the price of fuel increases, ceteris paribus, then, the demand for cars will decrease

  71. Avatar Ireoba Gideon Chikamjieke says:

    Name: Ireoba Gideon Chikamjieke
    Department: Economics
    Matriculation Number: 2021/244132

    1. Differences Between Positive Economics And Normative Economics:
    A. Subjectivity And Objectivity: Positive economics is objective in nature because it is fact-based where the statements are precise, descriptive, and clearly measurable. While normative economics is subjective and value-based, originating from personal perspectives or opinions involved in the decision-making process. The statements of this type of economics are rigid and prescriptive in nature.
    B. Statements: Positive economics statements can be tested or proved because it is based on data and facts while normative economics cannot be tested, proved or even verified because it is based on individual options and value judgements.
    C. Use: Positive Economics describe economics issues while normative economics provide solutions based on value.
    D. Functions: Positive economics explains cause and effect relationship between variables but normative economics pass value conclusions.
    E. Base/Origin: Positive economics is based on data and facts but normative economics is based on opinions and value judgements.

    2. Ceteris paribus can be translated into “all other things being equal” or “holding other factors constant.” For economic analysis, ceteris paribus means that when considering the effect of one economic variable on another, all other factors that may affect the second variable are held constant. In essence, ceteris paribus sets up a starting point for economic discussion and policy making.

    Here are some examples of where the ceteris paribus law is used.

    A. Interest Rates
    When the interest rate increases (ceteris paribus), demand for debt goes down, as the cost of borrowing increases.
    What is not considered is the wider economy. For instance, if businesses are doing well and looking to expand, an increase in the interest rate is unlikely to hold them back from borrowing.
    We can logically conclude that higher interest rates will decrease the demand for debt. However, it is equally important for us to conclude that this may not always be the case.

    B. Minimum Wage
    When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.
    In turn, demand for employees has to grow, whether the wages are higher or not. In fact, it could be argued that wages would naturally go up anyway.
    If we start from the theory, we can either identify variables that prove it would not work in current circumstances. Or, that in these circumstances, it would work.

    C. Higher Taxes
    If the government taxes people more, it receives more money. For instance, if the rate of income tax goes from 20 percent to 25 percent, the government should bring in more money. This is based upon ceteris paribus, where no other variables change.
    There are many other factors, but tax receipts are more sensitive to other variables. In other words, higher taxes are only one small factor in a list of many. However, the economy is a better predictor of how much money the government would receive.

  72. Faculty of Physical Sciences
    Department of Pure and Industrial Chemistry
    2020/243947
    Lambert Favour Chidiebere.

    1. Concepts and difference between positive and normative economics.
    Positive economics is related to the analysis which is limited to cause and effect relationship. On the other hand, normative economics aims at examining real economic events from the moral and ethical point of view. It is used to judge whether the economic events are desirable or not.
    While positive economics is based on facts on the economy, normative economics is value judgement based.
    Most of the people think that the statements which are commonly affected are a fact but in reality, they are valued.

    2. Concept and examples of Ceteris Paribus.
    Ceteris paribus means “all other things being equal” in Latin. This concept can be used both to explain natural or scientific laws, as well as economic theories. For example, imagine that you’re testing the law of gravity. If you throw an apple from the top of a tree it will fall to the ground, provided there are no changes to normal circumstances or “ceteris paribus.”

    However, what if a freak storm is passing through and a tornado picks up the apple? It might not fall to the ground, but this doesn’t mean it defies the law of gravity. Instead, it’s an example of things not being equal, or outside the norm.
    The ceteris paribus meaning in economics is concerned more with the effect of one variable on another. Economics involves numerous fluctuations according to outside influences, which is why the concept of ceteris paribus makes it easier to craft laws. If you can imagine a situation where there are only two variables, all other factors or fluctuations not included, you can more accurately consider cause and effect.

    In this way, ceteris paribus offers economists a way to build and test their models, barring extraneous variables. The concept creates an instant system of conditions, keeping out the fluctuations that make economic modelling difficult.

    Ceteris paribus examples
    One example of ceteris paribus would be the economic law of supply. According to this law, an increase in price results in an increase in quantity supplied, when keeping others factors constant or ceteris paribus.

    Using ceteris paribus, economists can focus solely on the two factors involved: price and supply. When producers are paid higher prices for a product, they will be willing to offer more of the product for sale by increasing production. While the real world is never as simple as this, the idea of ceteris paribus allows economists to look at the theoretical relationship between price and supply.

    A secondary example could be an explanation of the cost of eggs. In the real world, there’s a multitude of factors that would influence this cost, including the availability and health of chickens, the property values of farmland, the growing popularity of veganism reducing demand, or the level of currency inflation. To keep it simple and look solely at supply vs. cost, an economist could apply ceteris paribus. With all other factors constant, a reduction in the supply of egg-laying hens would cause egg prices to rise.

    Additional examples might include two-factor relationships between:

    Currency supply and inflation

    Interest rates and GDP

    Minimum wage and unemployment

    Rent control and housing supply.

  73. Faculty of Physical Sciences
    Department of Pure and Industrial Chemistry
    2020/243947
    Lambert Favour Chidiebere.

    1. Concepts and difference between positive and normative economics.
    Positive economics is related to the analysis which is limited to cause and effect relationship. On the other hand, normative economics aims at examining real economic events from the moral and ethical point of view. It is used to judge whether the economic events are desirable or not.
    While positive economics is based on facts on the economy, normative economics is value judgement based.
    Most of the people think that the statements which are commonly affected are a fact but in reality, they are valued.

    2. Concept and examples of Ceteris Paribus.
    Ceteris paribus means “all other things being equal” in Latin. This concept can be used both to explain natural or scientific laws, as well as economic theories. For example, imagine that you’re testing the law of gravity. If you throw an apple from the top of a tree it will fall to the ground, provided there are no changes to normal circumstances or “ceteris paribus.”

    However, what if a freak storm is passing through and a tornado picks up the apple? It might not fall to the ground, but this doesn’t mean it defies the law of gravity. Instead, it’s an example of things not being equal, or outside the norm.
    The ceteris paribus meaning in economics is concerned more with the effect of one variable on another. Economics involves numerous fluctuations according to outside influences, which is why the concept of ceteris paribus makes it easier to craft laws. If you can imagine a situation where there are only two variables, all other factors or fluctuations not included, you can more accurately consider cause and effect.

    In this way, ceteris paribus offers economists a way to build and test their models, barring extraneous variables. The concept creates an instant system of conditions, keeping out the fluctuations that make economic modelling difficult.

    Ceteris paribus examples
    One example of ceteris paribus would be the economic law of supply. According to this law, an increase in price results in an increase in quantity supplied, when keeping others factors constant or ceteris paribus.

    Using ceteris paribus, economists can focus solely on the two factors involved: price and supply. When producers are paid higher prices for a product, they will be willing to offer more of the product for sale by increasing production. While the real world is never as simple as this, the idea of ceteris paribus allows economists to look at the theoretical relationship between price and supply.

    A secondary example could be an explanation of the cost of eggs. In the real world, there’s a multitude of factors that would influence this cost, including the availability and health of chickens, the property values of farmland, the growing popularity of veganism reducing demand, or the level of currency inflation. To keep it simple and look solely at supply vs. cost, an economist could apply ceteris paribus. With all other factors constant, a reduction in the supply of egg-laying hens would cause egg prices to rise.

    Additional examples might include two-factor relationships between:

    Currency supply and inflation

    Interest rates and GDP

    Minimum wage and unemployment

    Rent control and housing supply.

  74. Avatar Ezinne Odigbo says:

    Name: Odigbo Ezinne
    Reg no: 2021/243523
    Department: Nursing
    Positive Economics is a system of economics that is based on objective, factual information that can be proven true or false by using a scientific approach. It can be used as a reliable source for decision-making purposes for a business or government authority. To be proven true or false, positive economics can be tested to validate whether its claims are correct. The scientific approach is used for positive economics to establish a cause and effect relationship. To do so, one must perform a scientific experiment in the form of research that proves the statements that positive economics is establishing.
    Normative Economics are in contrast to positive economics because they based not on facts, but on someone’s opinion or recommendation. A scientific approach cannot be taken to prove normative economics, since it is based on subjective information that changes from person to person. The main difference between normative and positive economics is that normative economics is created by biased opinions of an individual, while positive economics is based on unbiased findings that, when proven, are universally accepted and cannot be denied. These two separate divisions of economics have different purposes, but should be used in conjunction with each other.
    Ceteris peribius; all things being equal Suppose that you wanted to explain the price of milk. With a little thought, it becomes apparent that milk costs are influenced by numerous things: the availability of cows, their health, the costs of feeding cows, the amount of useful land, the costs of possible milk substitutes, the number of milk suppliers, the level of inflation in the economy, consumer preferences, transportation, and many other variables. So an economist instead applies ceteris paribus, which essentially says if all other factors remain constant, a reduction in the supply of milk-producing cows, for example, causes the price of milk to rise.

  75. Avatar Ugwueke-Roland Pamela Nonso says:

    Ugwueke-Roland Pamela Nonso
    Reg No: 10616332IB
    Email address: seeilolochambers@gmail.com
    1. Positive economics describes and explains various economic phenomena. Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.
    2. In essence, Ceteris Paribus means ‘other things equal’. With regards to economics, it assumes that other influencing factors are held constant. Ceteris paribus is where all other variables are kept equal. For example, if the price of Coca-Cola falls, ceteris paribus, its demand will increase.

  76. Avatar Enete mmaduabuchi Elijah 2020/245175 SLT says:

    ANSWERS
    1. Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economic theories.

    Normative economics focuses on value-based judgments aimed at improving economic development, investment projects, and the distribution of wealth. Its goal is to summarize the desirability (or lack thereof) of various economic developments, situations, and programs by asking what should happen or what ought to be.
    Normative economics is subjective and value-based, originating from personal perspectives or opinions involved in the decision-making process. The statements of this type of economics are rigid and prescriptive in nature. They often sound political, which is why this economic branch is also called “what should be” or “what ought to be” economics.
    An example of a normative economic statement is: “The government should provide basic healthcare to all citizens.” As you can deduce from this statement, it is value-based, rooted in personal perspective, and satisfies the requirement of what “should” be.

    2. Ceteris paribus is a Latin phrase that generally means “all other things being equal.”
    In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.
    Many economists rely on ceteris paribus to describe relative tendencies in markets and to build and test economic models.
    The difficulty with ceteris paribus is the challenge of holding all other variables constant in an effort to isolate what is driving change.
    In reality, one can never assume “all other things being equal.”

  77. Avatar Nnadi Agatha Ngozika reg no 19736885IF says:

    1.positive economics describes and explains various economic phenomena it’s also focuses on date and facts. Positive economics is based on fact and cannot be approved or disapproves example is law of demand.
    Normative economics focuses on the value of economic fairness or what the economic “should be” or “ought to be”example equal right.normative economics is based on value judgments.
    2.ceteris paribus means other things being equal with regards to economics,it assumes that other influencing factors are held constant.ceteris paribus is where all the other variables are kept equal for example if the price of biscuit falls its demand will increase another example would be the economic law of supply.

  78. Avatar Ike Gina Chinyere says:

    1. Normative Economics is the that economics uses value judgments, opinions, beliefs.This branch of economics considers values and results in statements that state, ‘what should be the things’. It incorporates subjective analyses and focuses on theoretical situations. It suggests how the economy ought to operate. It is also known as policy economics, as it takes into account individual opinions and preferences. Hence, the statements can neither be proven right nor wrong.

    Positive Economics is a branch of economics that has an objective approach, based on facts. It analyses and explains the casual relationship between variables. It explains people about how the economy of the country operates. Positive economics is alternatively known as pure economics or descriptive economics.
    When the scientific methods are applied to economic phenomena and scarcity related issues, it is positive economics. Statements based on positive economics considers what’s actually occurring in the economy.

    In comparison, normative economics is a perspective on economics that reflects ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios.
    Unlike positive economics which relies on objective data analysis, normative economics heavily concerns itself with value judgments and statements of “what ought to be” rather than facts based on cause-and-effect statements. It expresses ideological judgments about what may result in economic activity if public policy changes are made. Normative economic statements can’t be verified or tested.
    Normative economics aims to determine people’s desirability or the lack thereof to various economic programs, situations, and conditions by asking what should happen or what ought to be. Therefore, normative statements typically present an opinion-based analysis in terms of what is thought to be desirable.
    As positive economics describe economic programs, situations, and conditions as they exist, normative economics aims to prescribe solutions. Normative economic statements are used to determine and recommend ways to change economic policies or to influence economic decisions.
    Normative economics may be useful in establishing and generating new ideas from different perspectives, but it cannot be the only basis for making decisions on important economic issues, as it does not take an objective angle that focuses on facts and causes and effects.
    Economic statements coming from the positive economics angle can be broken down into determinable and observable facts that can be examined and tested. Because of this characteristic, economist and analysts often practice their professions under the positive economic angle. Positive economics, being the measurable perspective, helps policymakers and other government and business authorities decide on important matters that affect particular policies under the guidance of fact-based findings.
    However, policymakers, business owners, and other organizational authorities also typically look at what is desirable and what is not for their respective constituents, making normative economics an important part of the equation when deciding on important economic matters. Paired with positive economics, normative economics can branch into many opinion-based solutions that mirror how an individual or one whole community portrays particular economic projects. These kinds of views are especially important for policymakers or national leaders.

    2. The Latin term “ceteris paribus” is a concept used to help explain certain economic theories. Learn more about the importance of ceteris paribus and how it’s used below. Ceteris paribus means “all other things being equal” in Latin. This concept can be used both to explain natural or scientific laws, as well as economic theories.

    Examples
    One example of ceteris paribus would be the economic law of supply. According to this law, an increase in price results in an increase in quantity supplied, when keeping others factors constant or ceteris paribus.
    Using ceteris paribus, economists can focus solely on the two factors involved: price and supply. When producers are paid higher prices for a product, they will be willing to offer more of the product for sale by increasing production. While the real world is never as simple as this, the idea of ceteris paribus allows economists to look at the theoretical relationship between price and supply.

    Further example could be an explanation of the cost of eggs. In the real world, there’s a multitude of factors that would influence this cost, including the availability and health of chickens, the property values of farmland, the growing popularity of veganism reducing demand, or the level of currency inflation. To keep it simple and look solely at supply vs. cost, an economist could apply ceteris paribus. With all other factors constant, a reduction in the supply of egg-laying hens would cause egg prices to rise.

  79. Avatar Amah Maureen Amarachukwu....... 2020/247219 says:

    1a. Normative Economics focuses on value base judgement aired at improving economics development, investment, projects and the distribution of wealth. It’s goal is to summarize the desirability ( or lack thereof ) of various economics development, situations and programs asking what should happen or what ought to be.
    Normative Economics is subjective and value base, originating from personal perspectives or opinions involved in the decision making process. The situation of this type of economics are rigid and prescriptive in nature. They often sound political, which is why this economics branch is called “what should be” or “what ought to be”.
    Positive Economics is stream of economics that focuses on description, qualifications and explanation of economics development, expectations and associated phenomena. It replies on objective data analysis, relevant facts and associated figures. It attempts to establish any cause – and – effect relationship or behavioral associations which can help as certain to test the development of economics theories.
    Positive Economics is objective and fact based where the statement can be measured against tangible evidence or historical instances. There are no instances of approval – disapproval in positive Economics
    2. All things being equal, if the price of milk increases, people will buy less milk. The assumption ignores how other substitutes are behaving, how household income is behaving, or non – economics factors such as the health benefits of milk . Ceteris paribus will buy less of a product if the price is high.

  80. Avatar NWOKEDI CHIOMA MIRACLE says:

    1.Normative statements are based on opinions or ethics—what someone believes should be. Positive statements, on the other hand, are testable, even if they may not necessarily be true.
    For instance, arguing for a higher minimum wage for the benefit of workers would be an example of a normative argument, in that this argument is based on subjective values. However, an assertion that higher minimum wages would lead to a higher GDP would be considered positive economics.

    2.Ceteris paribus is where all other variables are kept equal. For example, if the price of Coca-Cola falls, ceteris paribus, its demand will increase. Ceteris paribus means that other factors are not considered, or are considered to remain constant.

  81. Avatar Amah Maureen Amarachukwu says:

    1a. Normative Economics focuses on value base judgement aired at improving economics development, investment, projects and the distribution of wealth. It’s goal is to summarize the desirability ( or lack thereof ) of various economics development, situations and programs asking what should happen or what ought to be.
    Normative Economics is subjective and value base, originating from personal perspectives or opinions involved in the decision making process. The situation of this type of economics are rigid and prescriptive in nature. They often sound political, which is why this economics branch is called “what should be” or “what ought to be”.
    Positive Economics is stream of economics that focuses on description, qualifications and explanation of economics development, expectations and associated phenomena. It replies on objective data analysis, relevant facts and associated figures. It attempts to establish any cause – and – effect relationship or behavioral associations which can help as certain to test the development of economics theories.
    Positive Economics is objective and fact based where the statement can be measured against tangible evidence or historical instances. There are no instances of approval – disapproval in positive Economics
    2. All things being equal, if the price of milk increases, people will buy less milk. The assumption ignores how other substitutes are behaving, how household income is behaving, or non – economics factors such as the health benefits of milk . Ceteris paribus will buy less of a product if the price is high.

  82. Avatar ILO DESTINY CHINASA says:

    NAME: ilo destiny chinasa
    FACULTY: social sciences
    DEPT: Combined social sciences
    COURSE: Economics
    Reg No:2021/243714
    COURSE CODE: Eco 101

    DIFFERENCE BETWEEN POSITIVE ECONOMICS AND NORMATIVE
    Positive Economics is an objective and a stream of economics that relies on fact or whats happening and any conclusions drawn from positive economic analysis can be tested and backed up by data. for example, the prediction that more people will save money if interest rate rise, would be based on Positive Economics because past behaviors support the theory. Positive economic theory can help policy makers implement normative value judgment for example, it can describe how the government can impact inflation by printing more money ,and it can support that statement with facts and analysis of behavior relationship between inflation and growth in the money supply. While Normative Economics focuses on the value of economic fairness or what the economy should be . it is also considered the branch of economic that tries to determine the desirability of different economic programs and conditions by asking what “should ” or what “ought” to be . Normative economic is subjective and value -based, originating from personal perspective or opinion involved in decision making process. An example of a Normative economic statement is “the government should provide basic health care to all citizens” As you can deduce from the statement, it is value base,rooted in personal perspective and satisfies the requirement of what “should ” be.

  83. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful. Reg number:2021/242480 nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  84. Avatar Mbaeze chidera marycynthia says:

    Positive Economics
    Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economic theories

    Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. These statements can be measured against tangible evidence or historical instances. There are no instances of approval-disapproval in positive economics.
    Positive economics was popularized by the economist Milton Friedman, who said that economic science should o.bjectively analyze data without any bias or agenda

    Normative Economics
    Normative economics focuses on value-based judgments aimed at improving economic development, investment projects, and the distribution of wealth. Its goal is to summarize the desirability (or lack thereof) of various economic developments, situations, and programs by asking what should happen or what ought to be.

    Normative economics is subjective and value-based, originating from personal perspectives or opinions involved in the decision-making process. The statements of this type of economics are rigid and prescriptive in nature. They often sound political, which is why this economic branch is also called “what should be” or “what ought to be” economics.

    Why is Ceteris Paribus Important in Economics
    Ceteris paribus is important in economics as it helps us develop some form of understanding of economic mechanisms. In other words, it allows us to form a basic understanding and principle by which we can build on.

    One of the classic examples of ceteris paribus is the supply and demand curve. As prices increase (ceteris paribus), demand falls. Now we can accept this fact when all other things are equal. However, there are also other factors such as the price of substitutes, taxes, economic climate, and so on.

    By applying ceteris paribus, we have a base to work from. Then we can start applying other factors and looking at the impact they would have. After all, we are only human and we do have cognitive limitations. We cannot plausibly factor in all variables.

    “Ceteris paribus simplifies economic analysis by looking at the most influential variables.”
    Ceteris paribus is also important because it allows economists to identify a relationship. Although there may be other variables, there may be one overwhelming factor that has a direct correlation with another. For instance, the theory of supply and demand.

    Whilst there are a plethora of other variables, the most common explanation for a decline in demand is the price. In the same fashion, supply will tend to increase when demand rises. The normal supply and demand mechanisms work 95 percent of the time.

    They help us explain economic actions most of the time and it’s for that reason that ceteris paribus is important. Without assuming other factors are consistent, we would not have developed a basic understanding of

    Ceteris Paribus Examples
    Ceteris paribus is an economic term where all other variables are kept constant. Examples include interest rates, the minimum wage, and higher taxes. When examining each of those, economists must often assume ceteris paribus in order to create some meaningful insight – due to the complexity and number of other variables.

    1. Interest Rates
    When the interest rate increases (ceteris paribus), demand for debt goes down, as the cost of borrowing increases.

    2. Minimum Wage
    When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.2. Minimum Wage
    When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.

    3. Higher Taxes
    If the government taxes people more, it receives more money. For instance, if the rate of income tax goes from 20 percent to 25 percent, the government should bring in more money. This is based upon ceteris paribus, where no other variables change.

    What is not considered is the impact on individuals, particularly rich individuals. They may leave the country altogether and what they contribute in taxes as well.

  85. NAME: Maduabuchi precious Chidinma
    EMAIL: preciousnma757@gmail.com
    REG NUMBER:10859954BD
    1) In normative economic analysis, we study what ought to be the desired situation or the ways economic problems should be solved. While in positive economics,we study what happened and what is currently happening in a given economy to form their basis of predictions for the future .

    2) Ceteris paribus is a Latin phrase that means “all other things being equal”.Experts use it to explain the theory behind laws of economics and nature. An example would be the economic law of supply. According to this law, an increase in price results in an increase in quantity supplied ,when other factors remain constant .
    When using Ceteris paribus , economists focus solely on supply and price factors.Also if the prices of milk increases, people will buy less milk. This assumption ignores how other substitutes ,household income or non_inconomic factors such as health benefits of milk are behaving.The higher the price of a commodity, the lower the quantity supplied.

  86. Avatar Ugwuanyi faustinus Arinze 10896440gi says:

    1) Positive economics is based on facts about the economy. They are related to the analysis which is limited to cause and effect relationship. It analyses and explains the casual relationship between variables. It explains people about how the economy of the country while Normative economics is the division of economics that has a more subjective approach and presents statements based on personal opinions. It incorporates subjective analyses and focuses on theoretical situations. It suggests how the economy ought to operate.

    2) Ceteris paribus means a situation where one determinant of supply or demand changes while all other factors affecting supply and demand remain unchanged. It assumes that other influencing factors are held constant.
    Eg If the price of a phone, Ceteris paribus, its demand will increase

  87. Egiekhina Winifred Onoste
    Reg no:10026710FF
    Department: Molecular Genetics and Biotechnology

  88. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful.
    Reg number:2021/242480 department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  89. Discuss and analyse the differences between normative and positive economics
    Normative economics is a branch of economics incorporating subjective approach of analysis based on value judgements,opinions and beliefs in statents stating “what should be the things” that focuses on theoretical solutions. It considers individual opinions and preferences hence statements can neither be proven right or wrong.It is also known as policy economics
    Positive economics is a branch of economics incorporating objective approach of analysis based on facts explaining casual relationship between variables.Statements related to the occurances in the economy are considered thereby helping policy makers decide whether the proposed action will fulfill the objectives. Acceptance and rejection of statements is permitted

    Differences between normative and positive economics

    Normative Positive economics
    Economics
    Based on opinions, Based on data and
    judgements and facts
    Values

    Prescriptive in descriptive in
    nature. nature

    Subjective. Objective

    What ought to. What actually is
    be

    No Scientific scientific testing
    testing Of of statements
    statements.

    Discuss and analyse the concept of ceteris paribus in economics with practical examples
    Ceteris paribus is a latin word meaning “other things being equal”.In regards to economics,it means the state in which influencing factors or variables are constant or equal OR all other factors not being considered or considered to be constant.
    For eg:
    According to ceteris paribus,if coca cola falls its demand will increase.Pepsi may react and change their prices as well.In other words it means the demand remains unchanged. Alternatively Coca cola may have to compromise the quality of their ingredients to reduce their prices leading to a decline in demand over long term.
    Also,If United States drill more oil domestically there would be more
    supply of gasoline hence dropping the price of gas
    It is known as natural law.There is no law that defines that it would happen.Its simply an assumed outcome based on how variables interact or flow together

  90. Avatar Chukwuma Arinzechukwu Franklin Reg no. 2021/243242. says:

    1

    Positive economics describes and explains various economic phenomena.
    positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.

    While

    Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.”
    Most public policy is based on a combination of both positive and normative economics.

    2

    Ceteris paribus in economics is a reference to how one isolated variable may change an economic environment assuming all other variables remain the same. In economics, ceteris paribus is often highly hypothetical as national economics and macroeconomic conditions are highly intricate and complex. However, ceteris paribus is the practice of seeing how a single economic concept (i.e. inflation) can impact broader concepts.

    Eg when there is inflation on price goods like pen the demand will reduce but when there is deflation in price of goods the demand will increase..

  91. Avatar Chukwuma Arinzechukwu Franklin Reg no. 2021/243242. says:

    1

    Positive economics describes and explains various economic phenomena.
    positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.

    While

    Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.”
    Most public policy is based on a combination of both positive and normative economics.

    2

    Ceteris paribus in economics is a reference to how one isolated variable may change an economic environment assuming all other variables remain the same. In economics, ceteris paribus is often highly hypothetical as national economics and macroeconomic conditions are highly intricate and complex. However, ceteris paribus is the practice of seeing how a single economic concept (i.e. inflation) can impact broader concepts.

    Eg when there is inflation on price goods like pen the demand will reduce but when there is deflation in price of goods the demand will increase.

  92. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful. Reg number:2021/242480 department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  93. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful. Reg number:2021/242480 . department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  94. Avatar Nwoye Michael Chukwunonso says:

    UNIVERSITY OF NIGERIA NSUKKA
    NAME :Nwoye Michael Chukwunonso
    REG. NUMBER :2021/242473
    DEPARTMENT :Nursing
    EMAIL nwoyemichael20@gmail.com

    What Is Normative Economics?
    Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios.

    Unlike positive economics, which relies on objective data analysis, normative economics heavily concerns itself with value judgments and statements of “what ought to be” rather than facts based on cause-and-effect statements. It expresses ideological judgments about what may result in economic activity if public policy changes are made. Normative economic statements can’t be verified or tested.
    Normative economics refers to the beliefs that support the valued judgement which is better for the nation’s economic future and for social welfare. Having a belief that the income should be distributed evenly in the economy is an example of normative economics.
    Normative economics predicates itself upon maximizing both an agents social and political utility, recognized as “aggregating interests”.

    Subfields of normative economics include social choice theory, cooperative game theory, and mechanism design.

    Some earlier technical problems posed in welfare economics and the theory of justice have been sufficiently addressed as to leave room for consideration of proposals in applied fields such as resource allocation, public policy, social indicators, and inequality and poverty measurement.
    An example of a normative economic statement is as follows:

    The price of milk should be $6 a gallon to give dairy farmers a higher living standard and to save the family farm.
    This is a normative statement, because it reflects value judgments. This specific statement makes the judgment that farmers deserve a higher living standard and that family farms ought to be saved.

    Normative economics predicates itself upon maximizing both an agents social and political utility, recognized as “aggregating interests”.
    Positive and normative economics are often synthesized in the style of practical idealism. In this discipline, sometimes called the “art of economics,” positive economics is utilized as a practical tool for achieving normative objectives, which often involve policy changes or states of affairs.
    What is Positive Economics?

    Positive economics is the stream of economics that has an objective approach, relied on facts. It concentrates on the description, quantification, and clarification of economic developments, prospects, and allied matters. This subdivision of economics relies on objective data analysis and relevant facts and figures. Therefore, it tries to establish a cause-and-effect relationship or behavioral relationship that can help determine as well as test the advancement of economic theories.
    Here, the study of economics is more objective and focuses more on facts. Moreover, the statements are precise, descriptive, and measurable. Such reports can be quantified with respect to noticeable evidence and historical references.
    Positive economics is an objective stream of economics that relies on facts or what is happening.
    Conclusions drawn from positive economics analyses can be tested and backed up by data.
    Positive economic theory does not provide advice or instruction.
    Statements based on normative economics include value judgments or what should be in the future.
    Comparison Chart

    BASIS FOR COMPARISON
    POSITIVE ECONOMICS
    NORMATIVE ECONOMICS

    Meaning
    A branch of economics based on data and facts is positive economics.(POSITIVE ECONOMICS )
    A branch of economics based on values, opinions and judgement is normative economics.(NORMATIVE ECONOMICS)

    Nature
    Descriptive(POSITIVE ECONOMICS)
    Prescriptive(NORMATIVE ECONOMICS)

    What it does?
    Analyses cause and effect relationship.(POSITIVE ECONOMICS)
    Passes value judgement.(NORMATIVE ECONOMICS)

    Perspective
    Objective(POSITIVE ECONOMICS)
    Subjective(NORMATIVE ECONOMICS)

    Study of
    What actually is(POSITIVE ECONOMICS )
    What ought to be(NORMATIVE ECONOMICS)

    Testing
    Statements can be tested using scientific methods.(POSITIVE ECONOMICS )
    Statements cannot be tested.(NORMATIVE ECONOMICS)

    Economic issues
    It clearly describes economic issue.(POSITIVE ECONOMICS)
    It provides solution for the economic issue, based on value.(NORMATIVE ECONOMICS)

    2.What Is Ceteris Paribus?
    Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”

    A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.
    Applications of Ceteris Paribus
    Suppose that you wanted to explain the price of milk. With a little thought, it becomes apparent that milk costs are influenced by numerous things: the availability of cows, their health, the costs of feeding cows, the amount of useful land, the costs of possible milk substitutes, the number of milk suppliers, the level of inflation in the economy, consumer preferences, transportation, and many other variables. So an economist instead applies ceteris paribus, which essentially says if all other factors remain constant, a reduction in the supply of milk-producing cows, for example, causes the price of milk to rise.

  95. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful. Reg number:2021/242480
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  96. Avatar Orih somtochukwu faithful says:

    me: Orih somtochukwu faithful. Reg number:2021/242480
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  97. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful.
    Reg number:2021/242480
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  98. Avatar TOCHUKWU ADAORAH DESTINY says:

    NAME: TOCHUKWU ADAORAH DESTINY
    REG. NO.11246747EF
    DEPARTMENT: ECONOMICS
    EMAIL ADDRESS:: destinyadaorah@gmail.com

    1.DIFFERENCES BETWEEN POSITIVE ECONOMICS AND NORMATIVE ECONOMICS
    a.) Positive Economics refers to a science or objective stream of economics that relies on facts or what is happening, it heavily concerns itself with value judgments and statements of “what ought to be” rather than facts.

    While on the other hand Normative economics (as opposed to positive economics) is the part of economics that focuses on the idea of fairness and what the outcome of the economy or goals of public policy ought to be.
    Normative economics is value judgment based. Most of the people think that the statements which are commonly accepted are a fact but in reality, they are valued. By, understanding the difference between positive and normative economics, you will learn about how the economy operates and to which extent the policy makers are taking correct decisions

    b). Positive Economics are already in place and has no need of approval from economists because they are already facts.
    While
    Many normative (value) judgments, however, are held conditionally, to be given up if facts or knowledge of facts changes, so that a change of values may be purely scientific.

    c). The perspective of positive economics is objective because it explains ‘what is’ while normative economics have a subjective perspective because it explains what should be’.

    d.) Positive economics is related to the analysis which is limited to cause and effect relationship.
    On the other hand, Normative economics aims at examining real economic events from the moral and ethical point of view. It is used to judge whether the economic events are desirable or not.

    e.) The perspective of positive economics is objective while normative economics have a subjective perspective.
    Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.

    f.)The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    Positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.

    2. DEFINITION OF CETERIS PARIBUS
    This commonly-used phrase stands for ‘all other things being unchanged or constant’. It is used in economics to rule out the possibility of ‘other’ factors changing, i.e. the specific causal relation between two variables is focused.

    In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect.
    For example: an economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one.

    Ceteris paribus assumptions help transform an otherwise deductive social science into a methodologically positive “hard” science. It creates an imaginary system of rules and conditions from which economists can pursue a specific end. Put another way; it helps the economist circumvent human nature and the problems of limited knowledge.

    Most, though not all, economists rely on ceteris paribus to build and test economic models. In simple language, it means the economist can hold all variables in the model constant and tinker with them one at a time. Ceteris paribus has its limitations, especially when such arguments are layered on top of one another. Nevertheless, it is an important and useful way to describe relative tendencies in markets.

    As an example, take the laws of supply and demand. Economists say the law of demand demonstrates that ceteris paribus, more goods tend to be purchased at lower prices. Or that, if demand for any given product exceeds the product’s supply, ceteris paribus, prices will likely rise. In this situation, the price of an item is the only variable that should change. All else should remain ceteris paribus. If only the price were to change, we can appropriately forecast the outcome because of the laws of supply and demand.

    Macroeconomics/GDP
    In general, economists and other social scientists will report how variables influence one another while holding all else constant. So, if we say that low unemployment is associated with higher inflation, ceteris paribus, it means holding everything else constant like GDP growth, balance of trade, money supply, and so on. However, each of these other factors, among others, also can play into inflation.

  99. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful.
    Reg number:2021/242480 department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  100. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful.
    Reg number:2021/242480 department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  101. Avatar TOCHUKWU ADAORAH DESTINY says:

    NAME: TOCHUKWU ADAORAH DESTINY
    REG. NO.11246747EF
    EMAIL ADDRESS:: destinyadaorah@gmail.com

    1.DIFFERENCES BETWEEN POSITIVE ECONOMICS AND NORMATIVE ECONOMICS
    a.) Positive Economics refers to a science or objective stream of economics that relies on facts or what is happening, it heavily concerns itself with value judgments and statements of “what ought to be” rather than facts.

    While on the other hand Normative economics (as opposed to positive economics) is the part of economics that focuses on the idea of fairness and what the outcome of the economy or goals of public policy ought to be.
    Normative economics is value judgment based. Most of the people think that the statements which are commonly accepted are a fact but in reality, they are valued. By, understanding the difference between positive and normative economics, you will learn about how the economy operates and to which extent the policy makers are taking correct decisions

    b). Positive Economics are already in place and has no need of approval from economists because they are already facts.
    While
    Many normative (value) judgments, however, are held conditionally, to be given up if facts or knowledge of facts changes, so that a change of values may be purely scientific.

    c). The perspective of positive economics is objective because it explains ‘what is’ while normative economics have a subjective perspective because it explains what should be’.

    d.) Positive economics is related to the analysis which is limited to cause and effect relationship.
    On the other hand, Normative economics aims at examining real economic events from the moral and ethical point of view. It is used to judge whether the economic events are desirable or not.

    e.) The perspective of positive economics is objective while normative economics have a subjective perspective.
    Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.

    f.)The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    Positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.

    2. DEFINITION OF CETERIS PARIBUS
    This commonly-used phrase stands for ‘all other things being unchanged or constant’. It is used in economics to rule out the possibility of ‘other’ factors changing, i.e. the specific causal relation between two variables is focused.

    In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect.
    For example: an economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one.

    Ceteris paribus assumptions help transform an otherwise deductive social science into a methodologically positive “hard” science. It creates an imaginary system of rules and conditions from which economists can pursue a specific end. Put another way; it helps the economist circumvent human nature and the problems of limited knowledge.

    Most, though not all, economists rely on ceteris paribus to build and test economic models. In simple language, it means the economist can hold all variables in the model constant and tinker with them one at a time. Ceteris paribus has its limitations, especially when such arguments are layered on top of one another. Nevertheless, it is an important and useful way to describe relative tendencies in markets.

    As an example, take the laws of supply and demand. Economists say the law of demand demonstrates that ceteris paribus, more goods tend to be purchased at lower prices. Or that, if demand for any given product exceeds the product’s supply, ceteris paribus, prices will likely rise. In this situation, the price of an item is the only variable that should change. All else should remain ceteris paribus. If only the price were to change, we can appropriately forecast the outcome because of the laws of supply and demand.

    Macroeconomics/GDP
    In general, economists and other social scientists will report how variables influence one another while holding all else constant. So, if we say that low unemployment is associated with higher inflation, ceteris paribus, it means holding everything else constant like GDP growth, balance of trade, money supply, and so on. However, each of these other factors, among others, also can play into inflation.

  102. Avatar Orih somtochukwu faithful says:

    : Orih somtochukwu faithful.
    Reg number:2021/242480 department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  103. Avatar Onyeocha Blessing Chinyere says:

    NAME: ONYEOCHA BLESSING CHINYERE. EMAIL: OnyeochaBlessing2@gmail.com. REG NUMBER:11057986EC. COURSE COD: ECO 101. DATE:27 JANUARy 2023
    QUESTION 1 ANALYSE THE DIFFERENCE BETWEEN
    NORNATIVE ECONOMIC AND POSITIVE
    ECONOMIC.
    POSITIVE ECONOMIC is a branch of economic that has an objective approach, based on facts. It analyses and explain the casual relationship between variable. It explains to people about how the economy of the country operates. Positive economic is alternatively know as pure economic or descriptive economics. When the scientific method are applied to economic phenomena and scarcity related issues, it is positive economics. Statement based on positive economic cosiders what’s actually occurring in the economy. it help the policy makers to decide whether the proposed action, will be able fulfill our objective or not.
    NORMATIVE ECONOMIC: this is the economic that uses value, judgements, opinions, beliefs is called normative economic. This branch of economic considers value and results in the statement that state, ‘what should be the things. It incorporates subjective analyses and focuses on theoretical situations. Normative economic suggests how the economy ought to operate. it is also know as policy economics. DIFFERENCE BETWEEN POSITIVE AND NORMATIVE ECONOMIC. (I) positive economic clearly define economic issues unlike normative economics,in which the remedies are provided for the economic issues,on the basis of value judgment. (ii) The statement of positive economic can be scientifically tested, proved or disprove, which cannot be done with statement of normative economics. (III) Positive economic explains ‘what is’ whereas normative economic explains ‘what should be’. (vi) The perspective of positive economic is objective while normative economics have a subjective perspective. (v) positive economic explains cause and effect relationship between variables on the hand, normative economic pass value judgment. (iv) positive economic is descriptive, but normative economic is prescriptive. (iiv) positive is base on data and fact why normative is described as a science be on opinion, value and judgment.
    QUESTION 2 DISCUSS AND ANALYSE THE CONCEPT OF CETERIS PARIBUS IN ECONOMIC WITH PRACTICE EXAMPLE.
    Ceteris paribus is a Latin phrase that means all things being equal. it’s often used in economics to make theoretical assumption about how one variable will respond to change in another variable. for example if we assume ceteris paribus,then A decrease in the price of goods it should lead to an increase in the demand for goods B for course in the real world, other things are rarely equal,so economist often have to make simplifying assumption when they build models and predictions. Example: if the price of Dettol soap is 300 Nair and the price of Dove soap is 500 Nair the quantity demanded of Dettol soap will be hight than dove soap. When ever the price of any commodity increase, it’s quantity demanded decrease, vice versa. It will happed accured to the law of demand and supply. If all the factor are constant the are. (I) The taste of consumer. (ii) The government rules. (III) The income of the consumer. (iv) No change in substitute products.
    Hence demand or supply law is proved due to the condition of ceteris paribus.

  104. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful
    Reg number:2021/242480 . department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  105. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful.
    Reg number:2021/242480 department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  106. Avatar Orih somtochukwu faithful says:

    me: Orih somtochukwu faithful.
    Reg number:2021/242480 department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  107. Avatar AGU KELECHI FAVOUR says:

    AGU KELECHI FAVOUR
    NURSING SCIENCES
    10973724EG
    In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect. An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one.
    Suppose that you wanted to explain the price of milk. With a little thought, it becomes apparent that milk costs are influenced by numerous things: the availability of cows, their health, the costs of feeding cows, the amount of useful land, the costs of possible milk substitutes, the number of milk suppliers, the level of inflation in the economy, consumer preferences, transportation, and many other variables. So an economist instead applies ceteris paribus, which essentially says if all other factors remain constant, a reduction in the supply of milk-producing cows, for example, causes the price of milk to rise.

  108. Avatar Orih somtochukwu faithful says:

    me: Orih somtochukwu faithful.
    Reg number:2021/242480.department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  109. Avatar Madu Ugochi Juliet says:

    Name: Madu Ugochi Juliet
    Faculty: Social science
    Department: Public Administration and Local government
    Reg. No: 10956654EA
    Level: 100L
    Course: Eco 101
    Email: madujuliet34@gmail.com

    1: Meaning of one normative economy:Normative economics is a perspective on economic that reflect normative or ideology,perspective judgment towards economic development and scenario’s.While positive economics referes to the objective analysis in the study of economics,most economist look at what has happened and what is currently happening in a given economy to form their basis of prediction for positive economics.

    Difference between positive and normative economic, positive economics tells economics phenomena while normative economics tells what the economy should be or ought to be while positive economics is centered on fact and cannot be approved or disapproved,it is based on judgment

    Ceteris paribus is a latin phrase meaning other things equal:some other english translation of the phrase are all other things being equal most things held stagnant,unchanged and all equal

    Practical Examples of Ceteris Paribus:if a price of maize falls the demand will increase,other commodities are not considered,sugar company may bring down their prices causing the demands to remain untouchable.

  110. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful.
    Reg number:2021/242480.department nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  111. Avatar Aruma happiness chinwekene. 2020/244692 says:

    1)DIFFERENCE BETWEEN NORMATIVE AND POSITIVE ECONOMICS
    Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios.

    Unlike positive economics, which relies on objective data analysis, normative economics heavily concerns itself with value judgments and statements of “what ought to be” rather than facts based on cause-and-effect statements. It expresses ideological judgments about what may result in economic activity if public policy changes are made. Normative economic statements can’t be verified or tested.
    Normative economics may be useful in establishing and generating new ideas from different perspectives, but it cannot be the only basis for making decisions on important economic issues, as it does not take an objective angle that focuses on facts and causes and effects.

    Economic statements coming from the positive economics angle can be broken down into determinable and observable facts that can be examined and tested. Because of this characteristic, economists and analysts often practice their professions under the positive economic angle. Positive economics, being the measurable perspective, helps policymakers and other government and business authorities decide on important matters that affect particular policies under the guidance of fact-based findings.
    Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. These statements can be measured against tangible evidence or historical instances. There are no instances of approval-disapproval in positive economics.

    Here’s an example of a positive economic statement: “Government-provided healthcare increases public expenditures.” This statement is fact-based and has no value judgment attached to it. Its validity can be proven (or disproven) by studying healthcare spending where governments provide healthcare.

    Positive economics was popularized by the economist Milton Friedman, who said that economic science should objectively analyze data without any bias or agenda.

    Normative economics is subjective and value-based, originating from personal perspectives or opinions involved in the decision-making process. The statements of this type of economics are rigid and prescriptive in nature. They often sound political, which is why this economic branch is also called “what should be” or “what ought to be” economics.

    An example of a normative economic statement is: “The government should provide basic healthcare to all citizens.” As you can deduce from this statement, it is value-based, rooted in personal perspective, and satisfies the requirement of what “should” be.

    One of the most famous normative economists is Amartya Sen, a Nobel prize winner who devoted his career to studying development economics.

    2) CETERIS PARIBUS IN ECONOMICS

    Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”
    The concept of ceteris paribus is important in economics because, in the real world, it’s usually hard to isolate all the different variables that may influence or change the outcome of what you are studying and how an individual might make a decision. It’s used in economics to rule out the possibility of other factors changing, which may have an impact on the outcome or decision-making process of individuals.

    For example, in economics, we may say that an increase in the price of beef will decrease the quantity demanded for beef. We often add the phrase or assume, ‘all else constant,’ at the end. Why, you might ask? We know from the law of demand that if the price of beef goes up, less beef will be demanded, all else constant. Now assume we take away the phrase, ‘all else constant.’ It now becomes extremely difficult to study the relationship between price and quantity demanded. We open up the entire world to known and unknown factors that may also affect the demand for beef.
    Example of Ceteris Paribus in Economics?
    All things being equal, if the price of milk increases, people will buy less milk. This assumption ignores how other substitutes are behaving, how household income is behaving, or non-economic factors such as the health benefits of milk. Ceteris paribus, people will buy less of a product if the price is higher.

  112. Answer 1
    Positive economics is a stream of economics that focuses on the description, qualification and a explanation of economic developments, expectations and associated phenomena. It relies on objective data analysis, relevant facts and associated figures. It attempts to establish any cause and effect relationships or behavioral associations which can help ascertain and test the development of economic theories. Positive economics is objective and fact- based where the statements are precise, descriptive, and clearly measurable.
    While, Normative economics focuses on value based judgements aimed at improving economic development, investments, projects and the distribution of wealth. It’s goal is to summarize the desirability of various economic development, situations and programs by asking what should happen or what ought to be.
    Normative economics is subjective and value based, originating from personal perspectives or opinions involved in decision making process.
    Answer 2
    ceteris paribus in economics is a reference to how one isolated variable may change an economic environment assuming all other variables remain the same. In economics, ceteris paribus is often highly hypothetical as national and macro economic conditions are highly intricate and complex. E.gs, all things being equal, if the piece of milk increases, people buy less milk. This assumption ignores how other substitutes are behaving, how household income is behaving or non-economic factors such as the health benefits of milk. Ceteris paribus, people will buy less of a product if the price is higher.

  113. Avatar Okolo Jennifer Ifebuche says:

    1). DIFFERENCE BETWEEN NORMATIVE AND POSITIVE ECONOMICS
    Positive economics and normative economics are two standard branches of modern economics. Positive economics describes and explains various economic phenomena, while normative economics focuses on the value of economic fairness or what the economy should be.

    To put it simply, positive economics is called the “what is” branch of economics. Normative economics, on the other hand, is considered the branch of economics that tries to determine the desirability of different economic programs and conditions by asking what “should” or what “ought” to be.
    Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economic theories. While
    Normative economics focuses on value-based judgments aimed at improving economic development, investment projects, and the distribution of wealth. Its goal is to summarize the desirability (or lack thereof) of various economic developments, situations, and programs by asking what should happen or what ought to be.
    Normative economics may be useful in establishing and generating new ideas from different perspectives, but it cannot be the only basis for making decisions on important economic issues, as it does not take an objective angle that focuses on facts and causes and effects.

    Economic statements coming from the positive economics angle can be broken down into determinable and observable facts that can be examined and tested. Because of this characteristic, economists and analysts often practice their professions under the positive economic angle. Positive economics, being the measurable perspective, helps policymakers and other government and business authorities decide on important matters that affect particular policies under the guidance of fact-based findings.
    However, policymakers, business owners, and other organizational authorities also typically look at what is desirable and what is not for their respective constituents, making normative economics an important part of the equation when deciding on important economic matters. Paired with positive economics, normative economics can branch into many opinion-based solutions that mirror how an individual or one whole community portrays particular economic projects. These kinds of views are especially important for policymakers or national leaders.
    As positive economics describe economic programs, situations, and conditions as they exist, normative economics aims to prescribe solutions. Normative economic statements are used to determine and recommend ways to change economic policies or to influence economic decisions.

    2) CETERIS PARIBUS IN ECONOMICS
    What Is Ceteris Paribus?
    Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”
    A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.
    CETERIS PARIBUS IN ECONOMICS
    Ceteris paribus in economics is a reference to how one isolated variable may change an economic environment assuming all other variables remain the same. In economics, ceteris paribus is often highly hypothetical as national economics and macroeconomic conditions are highly intricate and complex. However, ceteris paribus is the practice of seeing how a single economic concept (i.e. inflation) can impact broader concepts.
    In economics, ceteris paribus is the term used to denote that other factors are held constant.

    Importance of ceteris paribus in economics
    The concept of ceteris paribus is important in economics because, in the real world, it’s usually hard to isolate all the different variables that may influence or change the outcome of what you are studying and how an individual might make a decision. It’s used in economics to rule out the possibility of other factors changing, which may have an impact on the outcome or decision-making process of individuals.
    For example, in economics, we may say that an increase in the price of beef will decrease the quantity demanded for beef. We often add the phrase or assume, ‘all else constant,’ at the end. Why, you might ask? We know from the law of demand that if the price of beef goes up, less beef will be demanded, all else constant. Now assume we take away the phrase, ‘all else constant.’ It now becomes extremely difficult to study the relationship between price and quantity demanded. We open up the entire world to known and unknown factors that may also affect the demand for beef.

    What if the price of pork or chicken went down? Would some people buy less beef and substitute more pork and chicken? Certainly. What if a new study came out linking red meat to high rates of cancer or diabetes? Could that alone affect the demand for beef? Certainly. How about if the beef industry simply increased advertisements about the benefits of eating red meat? Could a large population increase affect the price and demand for beef? Again, the answers are: certainly

    I give you all of those other possibilities to show you that if you don’t include or assume the phrase, ‘all else constant,’ in economics, it can be almost impossible to identify the true effect of one variable on another. Or, in this case, the simple relationship between a price change for beef and the corresponding change in quantity demanded for beef.

    In the real world, it may be a combination of several things affecting the demand for beef. But to understand the influence of each one of those factors on price or quantity demanded, we must ignore all the other possibilities. It’s only then that we can see how each variable affects the other without interference of other outside forces.

    Example of Ceteris Paribus in Economics?
    All things being equal, if the price of milk increases, people will buy less milk. This assumption ignores how other substitutes are behaving, how household income is behaving, or non-economic factors such as the health benefits of milk. Ceteris paribus, people will buy less of a product if the price is higher.

  114. Avatar Orih somtochukwu faithful says:

    Name: Orih somtochukwu faithful. Reg number:2021/242480 department: nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  115. Avatar Eke Goodness Chisom says:

    Name: Eke Goodness Chisom
    Reg. No.: 10588203HI
    Department: Public Administration and Local Government
    Level: 100
    Eco 101 Assignment
    Understanding Normative and Positive Economics and Ceteris Paribus

    Introduction
    Economic principles can be used or obtained in two different forms. In one form, the past and present conditions can be taken as a reference while in another future prediction can be used as the base. Depending on such types of assumptions, economics is divided into two types, namely:

    Normative Economics
    Positive Economics

    Normative Economics: As opposed to positive economics is the part of economics that deals with normative statements. It focuses on the idea of fairness and what the outcome of the economy or goals of public policy ought to be which is commonly preferred by economists to distinguish normative economics (what is).

    Normative economics predicates itself upon maximizing both an agent social and political utility, recognizes as “Aggregating Interest”.

    Normative and positive economics are often synthesized in the style of practical idealism. Positive economics is utilized as a practical tool for achieving normative objective which often involve policy change or state of affairs.

    Subfields of Normative Economics include;
    1. Social Choice Theory
    2. Cooperative Game Theory
    3. Mechanism Design

    Example of Normative Economics
    We should cut taxes in half to increase disposal income levels. By contrast, a positive or objective economics would help many people but government budge constraints that make option unfeasible.

    Characteristics of Normative Economics
    1. It aims to determine what should happen or ought to.
    2. Aims to prescribe solutions.
    3. Expresses idea logical judgement about what may result in economic activity if public policy changes are made.
    4. Behavioral economics tends to be a normative project.
    5. Normative economics cannot be verified or tested.
    6. Useful in generating new ideas from different perspective but it cannot be the only bases for making decision on important economic issue.

    Advantage of Normative Economics
    1. The freedom to make choices.
    2. Normative economics is based on ideas.
    3. It is not necessary for economists to be 100% accurate in their judgments.
    4. Expresses ideological judgement about what may result in economic activity.

    Disadvantages of Normative Economics
    1. Too many variations from real situations and unrealistic considerations that cannot be applied to real lives.
    2. It is ahistorical inevitable.
    3. It is judgmental and
    4. Can cause offences.

    Positive Economics: Refers to the objective analysis in the study of economics. Most economists look at what has happened in a given economy to form their bases of predictions for the future. It is also an objective stream of economics that relies on facts or what is happening. Conclusions drawn can be tested and backed up by data, does not provide advice or instruction and work hand in hand with normative economics.

    Characteristics of Positive Economics
    1. Statement from positive economics can be broken down into determinable and observable facts that can be examined and tested.
    2. Being the measurable perspective helps policy makers and other governments and business authorities decide on important matters that affect particular policies.
    3. Positive Economics is known for fact based findings.

    Pros of Positive Economics
    1. Is easily verifiable because it is based on objective data
    2. Gives policymakers more power to make decisions
    3. Allows individuals to make wiser choices with their economic and financial lives

    Cons of Positive Economics
    1. We can’t always separate our emotions from the facts
    2. Economics isn’t an exact science, so there are no fool-proof solutions or conclusions
    3. Policies and solutions that arise from positive economics don’t affect everyone the same way.

    Importance of Positive and Normative types
    of economics

    1. Although positive and normative economics address economic assumptions differently, they can act together to create an ideal economic situation for the members of the economy.
    2. Normative economics can assume the results and positive economics can check whether the facts and data could be used to obtain the desired outcome in a due course of time.
    3. Positive economics is unavoidable for the measurement of various economic factors. It is widely used for the verification and testing of economic principles. On the other hand, normative economics is used to assume the ideal outcomes for the economies and it shows the path to follow for an ideal economic situation.
    4. The combined use of positive and normative economics is considered ideal for the formation of public policies. As positive economics offers the best information and normative economics gives the ideal solutions, a mix of the two is considered ideal for formulating the best public policies.
    5. Positive economics offers the exact fact that can be used as a milestone for reaching the values proposed by normative economics. Although normative economics is subjective, its principles can act as the torchbearers and can motivate economists to strive for a better economic situation.

    Differences between Positive and Normative economics

    Positive and normative economics are two branches of economics that deal with different aspects of the economy considered.

    1. Positive economics describes different economic phenomena.
    2. Normative economics deals with the desirability of the results of economic activities.
    3. Positive economics just relies on past and present data to determine future situations. It has nothing to do with fairness or the well-being of individuals and societies.
    4. On the other hand, normative economics deals with fairness and the value of economic principles.
    5. For example, while positive economics can suggest that the inflation of the economy may rise 1% over the next quarter.
    6. Normative economics would revolve around the suggestion that the rate should be halved for the betterment of the economy.
    7. Positive economics is based on facts that can either be approved or disapproved.
    8. The branch of normative economics can therefore be termed as ideological and non-fact-based.
    9. Positive economics uses facts and data and tries to find behavioral assessments to depend upon in order to formulate assumptions.
    10. Normative economics makes assumptions and lets economists fulfil the assumption in a due period of time.

    Therefore, in these ways mentioned above, we can say that positive economics is more practical than normative economics which is more ideological in nature.

    Conclusion
    Both positive and normative economics has their own merits and demerits and they can be used in different aspects to get better results.

    Concept of Ceteris Paeibus with example

    Ceteris paribus in economics is a reference to how one isolated variable may change an economic environment assuming all other variables remain the same. In economics, ceteris paribus is often highly hypothetical as national economics and macroeconomic conditions are highly intricate and complex. However, ceteris paribus is the practice of seeing how a single economic concept (i.e. inflation) can impact broader concepts.

    Ceteris paribus is considered natural law. It is not codified by any government; instead, it is thought to naturally occur based on how certain variables interact.

    For example: if the United States drilled for more oil domestically, there would be more supply for gasoline and the price of gas would drop. There is no law that defines that this would happen; it’s simply assumed as the outcome based on how situations naturally flow together.

    Basic Facts about Ceteris Paribus
    It drives demand and supply curve expectations. The relationship between quantity and price can only be determined if the variable in question are influenced and the rest are held constant.

    Applications of Ceteris Paribus
    1. Interest Rate: Ceteris Paribus higher interest rates causes decreased demand for debt. However, higher interest rate mean higher loan costs which decreases demand.
    2. Macroeconomics/GDP: Economists and other social scientists will report how variables influence one another while holding all else constant.
    3. Minimum Wage: Ceteris Paribus raising the minimum wage is thought to lower employment as business cuts across but this also ignores many other social and political factors.
    4. Demand and Supply: Economists say the law of demand demonstrates that in Ceteris Paribus, more goods tends to be purchased at lower prices. In this situation, the price of an item variable will change.
    5. Supply Chain: When considering the movement of an item through the supply chain process, economist may make claims on outcomes assuming all other variables are constant.

    Importance of Ceteris Paribus
    1. Its assumption helps transform an otherwise deductive social science into a methodological positive “Hard Science”
    2. It creates an imaginary system of rules and conditions from which economists can pursue a specific end.
    3. Helps the economist circumvent human nature and the problems of limited knowledge.
    4. It enables price discovery.
    5. Overcomes impossible scenarios.

    Advantages of Ceteris Paribus

    1. Employs a scientific method approach to solving for variables
    2. Uses positive economics that can test theories
    3. Is extensively used in both macroeconomics and microeconomics.
    4. Allows for otherwise impossible situations to be analyzed
    5. May aid in helping form price discovery or demand charts.

    Disadvantages of Ceteris Paribus

    1. May represent impossible situations which may hold little to not analytical value.
    2. Often omit the human element as it assumes all actions are rational and follow strict economic law.
    3. Does not consider the subjective value consumers may pursue.
    4. May detract from focusing on the aspects of a situation that do change in tandem with other variables.
    Conclusion
    Ceteris paribus helps determine what variables impact outcomes. By holding one variable constant or assuming that only one variable changes, it is inferred that any corresponding change is directly correlated to that single variable. Ceteris paribus may help drive metrics on customer taste, customer preference, consumer spending, the price of goods, market expectations, or government policy.

    Economists cite ceteris paribus to clarify that their assumptions on a given outcome are only valid if all other variables are remaining the same. Though ceteris paribus is truly unlikely due to the complexity of macroeconomic factors, it may still be useful in testing variables and determining what causes outcomes.

  116. Avatar Okafor Francisca Ijeoma says:

    Name: Okafor Francisca Ijeoma
    Registration number: 10578107AF
    Department: Economics
    Academic Session: 2021/2022
    Assignment Given On Eco 101: Understanding Normative And Positive Economics And Ceteris Paribus.

    Positive And Normative Economics
    What is Positive Economics?
    Positive Economics is a simple statement about what is, what was or will be often written in “If ………then”. If A happens then B will follow. It is very essential cause it allows us to test statement with data. It is written or spoken in a way that allow it to be treated with data. You can use the data, look at the numbers to see if the statement is true or false.
    Another essential note to know is that Positive statement is not always true. It can also be false statement.

    What is Normative Economics?
    Normative Economics are values, opinions and judgements. It often goes with a phrase that says “I think we should do this” or “We ought to do that”. “Do we think this is good or bad”. It is an opinion that cannot be tested to be true or false.

    Examples Of Positive Economics
    ▪︎Programs like welfare reduce the incentive for people to work.
    ▪︎Raising taxes on the wealthy to pay for government programs grows the economy.
    ▪︎Raising taxes on the wealthy slows economic growth.

    Examples Of Normative Economics
    ▪︎Paying people who aren’t working even though they could work is wrong and unfair.
    ▪︎The government should raise taxes on wealthy to pay for helping the poor.

    Advantages And Disadvantages Of Positive
    Economics
    Positive Economics deeply and logically analysis the causing effect between variables. It is described and explained with the help of statistical data.
    Advantages: The advantages of Positive Economics include the fact that the choices of Positive Economics are based on true data. Therefore, they can be used for real purposes rather than in making decisions in fancy. As there is no value judgements in Positive Economics, individuals can make better economic decisions as the facts of Positive Economics are based on facts.
    Disadvantages: Disadvantages of Positive Economics include the fact that people often decide based on emotions rather than depending on data. So, Positive Economics is often overlooked. Moreover, having a present or past fact does not mean that future facts will be similar. So, Positive Economics cannot be 100% accurate in measuring economic outcomes.

    Advantages And Disadvantages Of Normative
    Economics
    Normative Economics encompasses judgements which suggests “What ought to be” done in specific situation.
    Advantages: The advantages of Normative analysis include the freedom to make choices. As Normative Economics is based on ideas, it is not necessary for economists to be 100% accurate in their judgements.
    Disadvantages: The same stated above can be considered a disadvantage in some situations too. Disadvantages include too many variations from real situations and unrealistic considerations that cannot be applied to real lives.

    Differences Between Positive And Normative
    Economics
    ▪︎Positive Economics is descriptive in nature while Normative Economics is prescriptive in nature.
    ▪︎Positive Economics is based on scientific logic and facts while Normative Economics is based on individual opinions and values.
    ▪︎Positive Economics clearly explains economic problem and issues while Normative Economics provides solutions for economic problems based on value.
    ▪︎Positive Economics is described by classical economists while Normative Economics is described by neo – classical economists.
    ▪︎Positive Economics statement can be tested and verified while Normative Economics statement cannot be tested and verified.

    Conclusion
    Both Positive and Normative Economics has their own merits and demerits and they can be used in different aspects to get better results. Some may argue that Positive Economics is better than Normative Economics as it deals with facts, but sometimes dealing with ideas is also important.
    In a nutshell, using Positive and Normative Economics to their full potential can lead an economy to obtain the highest value in the long run.

    Ceteris Paribus
    What is Ceteris Paribus?
    Ceteris Paribus is a Latin phrase generally used by saying “All other things being equal”. Ceteris Paribus is often used when making arguments about case and effect. The world is so complex, it’s basically impossible to consider every possible variable. So, Ceteris Paribus assumption simplifies the equation so that the direct effect of X on Y can be isolated.

    Examples Of Ceteris Paribus
    ▪︎If the price of Pepsi falls, Ceteris Paribus, it’s demand will increase.
    ▪︎If I increase the price of a product, Ceteris Paribus, what will happen to demand?
    ▪︎if the minimum wage is increased, what will happen to productivity?

    Importance Of Ceteris Paribus
    ▪︎In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.
    ▪Many economists rely on Ceteris Paribus to describe relative tendencies in markets and to build and test economic models.
    ▪︎It helps us to develop some form of understanding of economic mechanisms.
    ▪︎It allows us to form a basic understanding and principle by which we can build on.

    Conclusion
    Although the real world is generally too messy to test economic theories that rely on Ceteris Paribus assumptions, there are ways to get around this. Behavioral economists design experiments that essentially create Ceteris Paribus conditions within a controlled laboratory setting. Participants in the experiments are asked to make decisions under certain conditions. The experiments is then able to isolate the direct effects of policy changes by altering one condition at a time while holding all else equal: Ceteris Paribus!.

  117. Avatar Ochin Lilian Chidinma says:

    Ceteris Paribus is a latin word commonly translated into English as “all things being equal”.
    In economics, it acts as an indication of the effect one economic variable has on another, provided all other variables remain the same. It is often used when making arguments about cause and effect. Experts use it to explain the theory behind laws of economics and nature. It means that something will occur as a result of something else most of the time, if nothing else changes.
    Ceteris Paribus can’t predict absolutes and certainties but it offers a base knowledge of tendencies or probabilities.
    Examples: “If the price of milk falls, Ceteris Paribus says the demand for milk will rise”.
    Name: OCHIN LILIAN CHIDINMA
    Matric Number: 2021/243551
    Department: Nursing Sciences

  118. Avatar Ochin Lilian Chidinma says:

    Normative economics:
    This is a branch of economics that is based on values, opinions and judgement. It deals with normative statements that is statements that cannot be tested. It focuses on the idea of fairness and what the outcome of the economy “ought to be”. It passes value judgements and provides solutions for economic issues.
    Positive economics:
    A branch of economics based on data and facts. It also deals with positive statements meaning that the statements can be tested using scientific methods. Positive economics as a science concerns analysis of economic behavior to determine “what actually is ” true, it also analyses cause and effect relationship. It clearly describes economic issues.

    Differences between Normative and Positive Economics
    1. Normative economics is based on value judgement while positive economics is based on facts and cannot be approved or disapproved
    2. Normative economics is related to the analysis which is limited to cause and effect relationship while positive economics is aimed

    Name: OCHIN LILIAN CHIDINMA
    Matric Number: 2021/234551
    Department: Nursing Sciences

  119. Avatar Ochin Lilian Chidinma says:

    Normative economics:
    This is a branch of economics that is based on values, opinions and judgement. It deals with normative statements that is statements that cannot be tested. It focuses on the idea of fairness and what the outcome of the economy “ought to be”. It passes value judgements and provides solutions for economic issues.

    Positive economics:
    A branch of economics based on data and facts. It also deals with positive statements meaning that the statements can be tested using scientific methods. Positive economics as a science concerns analysis of economic behavior to determine “what actually is ” true, it also analyses cause and effect relationship. It clearly describes economic issues.

    Differences between Normative and Positive Economics
    1. Normative economics is based on value judgement while positive economics is based on facts and cannot be approved or disapproved
    2. Normative economics is related to the analysis which is limited to cause and effect relationship while positive economics is aimed

  120. Avatar Abaligwe favour iheoma says:

    Name- Abaligwe favour iheoma
    Department- Biochemistry
    Registration Number- 2020/241486
    Economics Assignment ( Eco 101)
    1a.Normative economics is subjective and value-based, originating from personal perspectives or opinions involved in the decision-making process. 
    while
    1b.Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena.

    2. The concept of Ceteris Paribus in Economics is
    In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect. An economist might say raising the minimum wage  increases unemployment, increasing the supply of money causes inflation, reducing marginal cost boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. 
    The practical example of Ceteris Paribus are;
    1.One example of ceteris paribus would be the economic law of supply. According to this law, an increase in price results in an increase in quantity supplied, when keeping others factors constant or ceteris paribus. Using ceteris paribus, economists can focus solely on the two factors involved: price and supply.
    2. If the price of Coca-Cola falls, ceteris paribus, its demand will increase. Ceteris paribus means that other factors are not considered, or are considered to remain constant. Pepsi may react and reduce their prices as well, which may mean demand remains unchanged.

  121. Name: Okpara Chimezie Samuel
    Faculty: Social Science
    Department: Public Administration and Local Government
    Course Code: ECO 101
    Reg No: 10295145EE
    Level: 100L
    Email: okparachimezieroffmezie2001@gmail.com

    POSITIVE ECONOMICS

    Positive economics is a branch of economics that is based on facts, it shows, assertion and explains the informal relationship between variables. It portrays to people on how the economy of a given state us being administered and managed, a positive economics is also know as descriptive or pure economics

    NOMINATIVE ECONOMICS

    Nominative economics also known as belief economics is a branch of economics that deals with value, judgments and opinions, Nominative economics lays emphasis on how the economy is supposed to operate, it also takes account of individual opinion making it a policy economics

    DIFFERENCE BETWEEN POSITIVE ECONOMICS AND NOMINATIVE ECONOMICS.

    1) Positive economics is a branch of economics that is based on facts, data and objectives, it always have a goal or objective approach which make policy makers to decide whether a proposed action will be fit to accomplish their objectives, goals and achievements or not, while Nominative economics is based on values, judgments and opinions, it says more on things that can be done to achieve a given go so it is more of suggestions, ideas and opinions.

    2) Positive economics is descriptive, in other words it describes facts and relationship between variables, it is more of “what is” while Nominative economics is prescriptive, it gives room for opinions before actions so it’s more of “what should be”

    3) In positive economics facts and data’s can be tested, proved or disproved cause it is an already existing thing but nominative economics can’t be tested, proved or disproved cause it is a result of opinions and suggestions that are valid and generally accepted.

    CETERIS PARIBUS

    Ceteris Paribus is a latin phrase that is generally used for saying “with other things being the same” it is specifically essential in the study of effects and causes between two variables such that other pertinent factors are considered constant as a result of the assumption of ceteris paribus, “Mutantis mutandis” is the opposite of “ceteris paribus” which means changing in some factors that needs to be changed.

    A practical example of ceteris paribus is when the price of cornflakes increases, people will no longer purchase cornflakes as they use to, ceteris paribus does not consider the price of competing products, the availability of cornflakes or other factors that would affect consumer’s decreasing desire to buy less cornflakes. It only considers the cause (increased price) with one effect (decreased sakes of cornflakes).

  122. Avatar Odo Abigail chidimma. reg no:2021/243726 says:

    1 . positive economics describes and explain various economic phenomena.normative economics focuses on the value of economic fairness or what the economy “should to be”or “ought to be”. while positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgements. normative economics aims to determine what should happen or what ought to y, while positive economics describe economic programs, situations and conditions.
    2 . ceteris paribus means’other things equal’with regards to economics,it assumes that other influencing factors are held constant. ceteris paribus is where all other variables are kept equal. for example:if the price of Coca-Cola Falls, ceteris paribus it’s demand will increase. in economics ceteris paribus is the term used to denote that other factors are held constant.

  123. Avatar Ugwu chinecherem colette. 2020/241360 says:

    1) Difference between normative and Positive economics

    Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios.

    Unlike positive economics, which relies on objective data analysis, normative economics heavily concerns itself with value judgments and statements of “what ought to be” rather than facts based on cause-and-effect statements. It expresses ideological judgments about what may result in economic activity if public policy changes are made. Normative economic statements can’t be verified or tested.
    Normative economics may be useful in establishing and generating new ideas from different perspectives, but it cannot be the only basis for making decisions on important economic issues, as it does not take an objective angle that focuses on facts and causes and effects.

    Economic statements coming from the positive economics angle can be broken down into determinable and observable facts that can be examined and tested. Because of this characteristic, economists and analysts often practice their professions under the positive economic angle. Positive economics, being the measurable perspective, helps policymakers and other government and business authorities decide on important matters that affect particular policies under the guidance of fact-based findings.

    However, policymakers, business owners, and other organizational authorities also typically look at what is desirable and what is not for their respective constituents, making normative economics an important part of the equation when deciding on important economic matters. Paired with positive economics, normative economics can branch into many opinion-based solutions that mirror how an individual or one whole community portrays particular economic projects. These kinds of views are especially important for policymakers or national leaders.

    2). Ceteris paribus in economics
    Ceteris paribus is the commonly used Latin phrase meaning ‘all other things remaining constant.’ When using ceteris paribus in economics, it is often safe to assume that all other variables, except those under immediate consideration, are held constant.

    Importance of ceteris paribus in economics
    The concept of ceteris paribus is important in economics because, in the real world, it’s usually hard to isolate all the different variables that may influence or change the outcome of what you are studying and how an individual might make a decision. It’s used in economics to rule out the possibility of other factors changing, which may have an impact on the outcome or decision-making process of individuals.

    FOR EXAMPLE, in economics, we may say that an increase in the price of beef will decrease the quantity demanded for beef. We often add the phrase or assume, ‘all else constant,’ at the end. Why, you might ask? We know from the law of demand that if the price of beef goes up, less beef will be demanded, all else constant. Now assume we take away the phrase, ‘all else constant.’ It now becomes extremely difficult to study the relationship between price and quantity demanded. We open up the entire world to known and unknown factors that may also affect the demand for beef.

    What if the price of pork or chicken went down? Would some people buy less beef and substitute more pork and chicken? Certainly. What if a new study came out linking red meat to high rates of cancer or diabetes? Could that alone affect the demand for beef? Certainly. How about if the beef industry simply increased advertisements about the benefits of eating red meat? Could a large population increase affect the price

  124. Avatar Blessed Adaeze Francis says:

    1.faculty: social science
    2.reg no:11228041JH
    3 department: public administration and local government
    4.level:100l
    5.course code.Eco 101
    Definition of Normative Economics
    This can be seen as a focus on value based judgement,whose aim is to improve the economic growth and development, investment project to distribute the economy’s wealth.
    Definition of Positive Economics
    Can be said to be the study of analysis in economics,in a sense that what happened is currently happening in the economy can be used to predict or assume the future of that economy.
    Difference between positive and normative economy.
    Positive economics describes the various phenomenal that takes place in the economy while normative economics focuses on what the economy “should be” or “ought to be,” or the importance of economic fairness.
    Normative economics is based on value judgments, whereas positive economics is founded on truth and cannot be approved or condemned.
    Analysis that only considers cause and effect relationships is related to positive economics. The goal of normative economics, on the other hand, is to examine actual economic occurrences from a moral and ethical standpoint. It is employed to determine whether or not certain economic occurrences are desirable.
    In order to build economic theories, positive economics looks at cause-and-effect links, behavioral finance, and fact-based economic relationships. Policymakers can adopt normative value judgments by using positive economic theory to analyze behavioral relationships and back up claims. Making assessments of economic value is profitable in this study of economic behavior while normative economics examines what ought to occur as opposed to what is now taking place. This area of economics specializes in the concept of fairness and deals with normative claims. It is impacted by value judgments because it is an analysis that is based on opinions. Results are graded in normative economics as either good or negative. There is no way to support or refute an opinion because of the nature of this area of economics.
    Due to the availability of evidence, the majority of economists favor a positive view of the economy. This aids them in later, necessary, verification of the statements. However, normative economics offers the best strategies for achieving an optimal economic condition. To create the best public policies, it is crucial to use both positive and normative economics.

    2) Ceteris paribus literally translates to “everything else equal” in Latin.

    Its English equivalent is frequently used in economics. Without taking into account changes to any other external circumstances, it ensures that changes detected fall within the purview of two important elements. The Latin phrase mutatis mutandis, which can be translated as “with all appropriate distinctions being considered,” is the reverse of this. Therefore, mutatis mutandis takes into account the final outcome of events after all relevant modifications have taken place, whereas ceteris paribus concentrates on the relationship between only two variables.
    This is exactly the same as using a constant in mathematics, where one variable in an equation may change but another remains constant in all circumstances. The idea of ceteris paribus is fundamental to comprehending economics, just as scarcity is.

    For instance, these variables should be taken into account in isolation from any other reasonable aspects to comprehend what might happen to the price or availability of a specific resource considering changes to the quantity required (desired) by customers. It would be far too difficult, if not impossible in most cases, to draw useful inferences from an equation if all pertinent components were observed.
    In a similar vein, experts forecast that when fuel prices rise, consumer demand will decline and other factors stay the same. If we take into account some unknowable elements in this case, such as whether the buyers enjoy using fuel and whether it is highly useful to them, then they won’t stop doing so even if costs rise.

  125. Avatar Ibeh-Chris Victor. 2020/243522 says:

    1.Positive economics describes and explains different economic phenomena. Normative economics centers on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.

    2.In essence, Ceteris Paribus means ‘other things equal’. With regards to economics, it assumes that other influencing factors are held constant. Ceteris paribus is where all other things are kept equal. For example, if the price of tomatoes falls, ceteris paribus, the demand of the product will increase.

  126. Avatar Ifeanyi Blessed Ebube 2020/241358 says:

    1. Analysis that only considers cause and effect relationships is related to positive economics. The goal of normative economics, on the other hand, is to examine actual economic occurrences from a moral and ethical standpoint. It is employed to determine whether or not certain economic occurrences are desirable.

    2. Ceteris Paribus essentially means “other things equal.” It makes the assumption that other influencing elements will remain constant when discussing economics. When all other factors are held constant, the phrase “ceteris paribus” is used. For instance, if Coca-price Cola’s drops, ceteris paribus, its demand will rise.

  127. Avatar Ugwuanyi Dumebi Dominic says:

    Name: Ugwuanyi Dumebi Dominic
    Reg No: 2021/241948
    Mail: dumebidominic04@gmail.com
    1)We have two economic reasoning they Positive economics and Normative economics.Positive economics explains “what is ” while Normative economics does with “what should be”. These are the difference between the both.
    a) Positive economics is descriptive but normative economics is prescriptive.
    b)All statements in Positive economics can be scientifically tested, proved or disproved but those of Normative economics cannot.
    c) Positive economics can clearly define issues but Normative economics has remedies for economic issues that is value judgement.
    d) Positive economics also explains relationship between variables whereas Normative economics still emphasis on value judgement.
    e) Positive economics has an objective perspective while Normative economics has a subjective perspective.
    Examples:
    Positive economics:
    i) How will an increase in price of internet affect the number of subscribers.
    ii) How will an increase in rates affect investment in factories.
    iii) How will an increase in the wage of fast food workers affect the number of workers.
    Normative economics:
    i) Should the government increase the minimum wage of civil servants
    ii) Should government provide free education for all students in tertiary institutions.
    iii) Should the course representative not give attendance to late students.
    If i am to say more I would say that both Positive economics and Normative economics are not contradictory,they are only complementary to each other. When laying down laws and theories Positive economics is preferred and for practical application economics should be treated as Normative economics.
    2) Ceteris paribus: The word Ceteris paribus is from a latin word which means “all things being equal or all other being equal”
    The Ceteris paribus is a rule that indicates how all variables are fixed.Some science engage in experimentation but economics doesn’t that’s to show how variables are being connected.
    But in the real world some economic variables mainly price and income are constantly changing this creates a problem in demonstrating the relationship between variables.For example: a fall in price could lead to arise in consumers demand if we assume nothing else changes.
    In all for a independent reason , income doesn’t use it.

  128. Avatar Ibeh-Chris Victor. 2020/243522 says:

    1.Positive economics describes and explains various economic phenomena. Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.

    2.In essence, Ceteris Paribus means ‘other things equal’. With regards to economics, it assumes that other influencing factors are held constant. Ceteris paribus is where all other variables are kept equal. For example, if the price of Coca-Cola falls, ceteris paribus, its demand will increase.

  129. Avatar ODIFE SANDRA EBERECHUKWU says:

    ODIFE SANDRA EBERECHUKWU
    2020/241161
    SCIENCE LABORATORY TECHNOLOGY
    1)Normative economics refers to the beliefs that support the valued judgement which is better for the nation’s economic future and for social welfare. Having a belief that the income should be distributed evenly in the economy is an example of normative economics. WHILE Positive economics refers to the matter of the presence of the theory along with the proven facts and figures that are taken into account before developing a theory. Law of demand is an example of positive economics.
    2) Ceteris paribus is a Latin phrase that is generally used for saying ‘with other things being the same’. It is particularly crucial in the study of cause and effect relationship between two specific variables such that other relevant factors influencing these are assumed to be constant.For Example in economics “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  130. Avatar Uwah Confidence Kelechi. 2021/243042 says:

    2. Ceteris paribus is a Latin phrase that generally means all other things being equal.
    In economics it acts as a shorthand indication of the effect one economic variable has on another.
    Ceteris paribus is often used when making argument about cause and effect.
    Examples:(a). Interest rate: There’s often an inverse relationship between interest rate and demand for borrowing. This is because higher interest loan causes loan to become more expensive. Therefore, ceteris paribus, higher interest rate causes lower demand for debt
    (b). Minimum wage: Raising the minimum wage is thought to lower employment as business cuts cost.
    (c). An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal cost boosts economic profit for a company.
    (d). Economists and other social scientists reports how variable influence one another while holding all else constant. Low employment is associated with higher inflation. Ceteris paribus, it means holding everything else constant like GDP growth, balance of trade and money supply.

    1. Positive economic describes and explain various economic phenomenon .
    It is based on fact and cannot be approved or disapproved . While
    Normative economic focuses on the value of economic fairness or what the economy should be or ought to be.
    It is based on value judgement.

  131. Avatar Okolo Jennifer Ifebuche says:

    DIFFERENCE BETWEEN NORMATIVE AND POSITIVE ECONOMICS
    1)Positive economics and normative economics are two standard branches of modern economics. Positive economics describes and explains various economic phenomena, while normative economics focuses on the value of economic fairness or what the economy should be.

    To put it simply, positive economics is called the “what is” branch of economics. Normative economics, on the other hand, is considered the branch of economics that tries to determine the desirability of different economic programs and conditions by asking what “should” or what “ought” to be.
    Positive Economics
    Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economic theories. While
    Normative economics focuses on value-based judgments aimed at improving economic development, investment projects, and the distribution of wealth. Its goal is to summarize the desirability (or lack thereof) of various economic developments, situations, and programs by asking what should happen or what ought to be.

    Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios. While

    Positive economics which relies on objective data analysis, normative economics heavily concerns itself with value judgments and statements of “what ought to be” rather than facts based on cause-and-effect statements. It expresses ideological judgments about what may result in economic activity if public policy changes are made. Normative economic statements can’t be verified or tested.

    Normative economics may be useful in establishing and generating new ideas from different perspectives, but it cannot be the only basis for making decisions on important economic issues, as it does not take an objective angle that focuses on facts and causes and effects.

    Economic statements coming from the positive economics angle can be broken down into determinable and observable facts that can be examined and tested. Because of this characteristic, economists and analysts often practice their professions under the positive economic angle. Positive economics, being the measurable perspective, helps policymakers and other government and business authorities decide on important matters that affect particular policies under the guidance of fact-based findings.
    However, policymakers, business owners, and other organizational authorities also typically look at what is desirable and what is not for their respective constituents, making normative economics an important part of the equation when deciding on important economic matters. Paired with positive economics, normative economics can branch into many opinion-based solutions that mirror how an individual or one whole community portrays particular economic projects. These kinds of views are especially important for policymakers or national leaders.

    2) Ceteris Paribus in Economics
    Ceteris paribus in economics is a reference to how one isolated variable may change an economic environment assuming all other variables remain the same. In economics, ceteris paribus is often highly hypothetical as national economics and macroeconomic conditions are highly intricate and complex. However, ceteris paribus is the practice of seeing how a single economic concept (i.e. inflation) can impact broader concepts.

    Why Is It Important in Economics?
    The concept of ceteris paribus is important in economics because, in the real world, it’s usually hard to isolate all the different variables that may influence or change the outcome of what you are studying and how an individual might make a decision. It’s used in economics to rule out the possibility of other factors changing, which may have an impact on the outcome or decision-making process of individuals.

    For example, in economics, we may say that an increase in the price of beef will decrease the quantity demanded for beef. We often add the phrase or assume, ‘all else constant,’ at the end. Why, you might ask? We know from the law of demand that if the price of beef goes up, less beef will be demanded, all else constant. Now assume we take away the phrase, ‘all else constant.’ It now becomes extremely difficult to study the relationship between price and quantity demanded. We open up the entire world to known and unknown factors that may also affect the demand for beef.

    What if the price of pork or chicken went down? Would some people buy less beef and substitute more pork and chicken? Certainly. What if a new study came out linking red meat to high rates of cancer or diabetes? Could that alone affect the demand for beef? Certainly. How about if the beef industry simply increased advertisements about the benefits of eating red meat? Could a large population increase affect the price and demand for beef? Again, the answers are: certainly!

    I give you all of those other possibilities to show you that if you don’t include or assume the phrase, ‘all else constant,’ in economics, it can be almost impossible to identify the true effect of one variable on another. Or, in this case, the simple relationship between a price change for beef and the corresponding change in quantity demanded for beef.

    In the real world, it may be a combination of several things affecting the demand for beef. But to understand the influence of each one of those factors on price or quantity demanded, we must ignore all the other possibilities. It’s only then that we can see how each variable affects the other without interference of other outside forces.

    Example of Ceteris Paribus in Economics
    All things being equal, if the price of milk increases, people will buy less milk. This assumption ignores how other substitutes are behaving, how household income is behaving, or non-economic factors such as the health benefits of milk. Ceteris paribus, people will buy less of a product if the price is higher.

  132. Avatar Odife Sandra Eberechukwu says:

    1)Normative economics refers to the beliefs that support the valued judgement which is better for the nation’s economic future and for social welfare. Having a belief that the income should be distributed evenly in the economy is an example of normative economics. WHILE Positive economics refers to the matter of the presence of the theory along with the proven facts and figures that are taken into account before developing a theory. Law of demand is an example of positive economics.
    2) Ceteris paribus is a Latin phrase that is generally used for saying ‘with other things being the same’. It is particularly crucial in the study of cause and effect relationship between two specific variables such that other relevant factors influencing these are assumed to be constant.For Example in economics “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  133. Avatar NAME:CHUKWUNENYE MIRACLE NMESOMA , DEPARTMENT:PUBLIC ADMINISTRATION, REG. NO:2021/243720, COURSE CODE:ECO 101 says:

    Definition of terms
    NORMATIVE (synonym; descriptive): In this context, means describing or setting standards or rules of language or behavior which should be followed.
    ECONOMICS: Is the principles of the production and distribution of goods and services and development of wealth.
    POSITIVE: in this context, means having a helpful and constructive intention or attitude towards something. e.i effort to be positive rather the true, in solving a problem.
    Normative economics: normative economics is view on economics that reflects normative or ideologically prescriptive judgments toward economic development, investments and imagined sequence of future events .it expresses ideological judgment about what may result in economic activities if public policy changes are made. Normative economic cannot be verified or tested. Its objective is to summarize people’s desirability (or the lack thereof) to various economic program, situation and conditions by asking what should happen or what is to be. Examples of normative economics statements:
    1. “the government should make available fundamental healthcare to every citizen” you can see that this statement is based on personal perspective and satisfies the need for “should be”
    2. “women should be provided higher education than men”
    3. “laborers should receive greater part of capital profits”
    4. “working citizens should not pay for hospital care”
    All this statement typically contains a keyword in the decision-making process(‘should be’).Normative economics is subjective and value based, originating from personal perspective or opinions involved.
    POSITIVE ECONOMICS: positive economics is a stream of economics that deals with positive statements. That is, it focuses on the description, quantification and explanation of economics phenomena. It deals with empirical facts as well as cause-and-effect behavioral relationships and emphases that economic theories must be consistent with existing observations and produce testable, precise prediction about the phenomena under question. It is concerned with analysis of economic behavior to determine what is true. Examples of positive economics statements:
    1. “ the unemployment in France is higher than that in the united states”
    2. “an increase in government spending would lower the unemployment rate”
    Either of these is potentially falsifiable and maybe contradicted by evidence. Positive economics as such avoids economic value judgments. For example, a positive economic theory might describe how money supply growth affects inflation, but it does not provide any instruction on what policy ought to be followed. This contrasts with the normative statements, in which an opinion is given. For example,” government spending should be increased.
    DIFFERENCES BETWEEN NORMATIVE AND POSITVE ECONOMICS
    In a simpler explanation, positive economics is called the “what is” branch of economics. Normative economics on the other hand, is considered the branch of economics by asking what or what ought not to be.
    DIFFERENCES
     Positive economics describes and explains phenomena
     Normative economics focuses on the value of fairness, or what the economy “should be” or “ought to be”
     While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.
     Positive economics statement has to be tested verified.
     Normative economics statements are generalized and subjective in nature, they act as the necessary channels for out-of-the-box thinking.

    BRIEF ANLYISIS ON CATERIS PARIBUS
    Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”
    A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.
    THINGS TO NOTE
    • Ceteris paribus is a Latin phrase that generally means “all other things being equal.”
    • In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.
    • Many economists rely on ceteris paribus to describe relative tendencies in markets and to build and test economic models.
    • The difficulty with ceteris paribus is the challenge of holding all other variables constant in an effort to isolate what is driving change.
    • In reality, one can never assume “all other things being equal.”
    Understanding Ceteris Paribus
    In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect. An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation reducing marginal cost, boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one.
    Ceteris paribus assumptions help transform an otherwise deductive social science into a methodologically positive “hard” science. It creates an imaginary system of rules and conditions from which economists can pursue a specific end. Put another way; it helps the economist circumvent human nature and the problems of limited knowledge.
    Most, though not all, economists rely on ceteris paribus to build and test economic models. In simple language, it means the economist can hold all variables in the model constant and tinker with them one at a time. Ceteris paribus has its limitations, especially when such arguments are layered on top of one another. Nevertheless, it is an important and useful way to describe relative tendencies in market.
    Applications of Ceteris Paribus
    Suppose that you wanted to explain the price of milk. With a little thought, it becomes apparent that milk costs are influenced by numerous things: the availability of cows, their health, the costs of feeding cows, the amount of useful land, the costs of possible milk substitutes, the number of milk suppliers, the level of inflation in the economy, consumer preferences, transportation, and many other variables. So an economist instead applies ceteris paribus, which essentially says if all other factors remain constant, a reduction in the supply of milk-producing cows, for example, causes the price of milk to rise.
    Supply and Demand
    As an example, take the laws of supply and demand. Economists say the law of demand demonstrates that ceteris paribus, more goods tend to be purchased at lower prices. Or that,if demand for any given product exceeds the product’s supply, ceteris paribus, prices will likely rise. In this situation, the price of an item is the only variable that should change. All else should remain ceteris paribus. If only the price were to change, we can appropriately forecast the outcome because of the laws of supply and demand

  134. Avatar Nwakanma Nnenna Gift. 2020/245117 says:

    1.Positive economics describes and explains various economic phenomena. Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.

    2.In essence, Ceteris Paribus means ‘other things equal’. With regards to economics, it assumes that other influencing factors are held constant. Ceteris paribus is where all other variables are kept equal. For example, if the price of pepsi falls, ceteris paribus, its demand will increase.

  135. Avatar NWACHUKWU CHIBUGO VICTORIA, Department: public administration and local government, Reg number: 10741089DG says:

    1) Positive economics describes and explains various economic phenomena while Normative economics focuses on the value of economics fairness, or what the economy “should be” or “ought to be”.
    2) Positive economics relies on objective data analysis, relevant facts and associated figures while Normative economics focuses on value based judgements aimed at improving economic development, investment, projects and distribution of wealth.
    3) Positive economics was popularized by the economist MILTON FRIEDMAN, who said that economic science should objectively analyze data without any bias or agenda while one of the most famous Normative economist is AMARTYA SEN, a Nobel prize winner who devoted his career to studying development economics.

    CETERIS PARIBUS
    CETERIS PARIBUS means a commonly used phrase which stands for “all other things being unchanged or constant”. It is used in economics to rule out the possibility of ‘other’ factors changing i.e the specific causal relation between two variables is focused.

  136. Avatar Obetta Cynthia Chinaza Reg no:2020/244993 says:

    1. Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios.

    Unlike positive economics, which relies on objective data analysis, normative economics heavily concerns itself with value judgments and statements of “what ought to be” rather than facts based on cause-and-effect statements. It expresses ideological judgments about what may result in economic activity if public policy changes are made. Normative economic statements can’t be verified or tested.

    Normative economics aims to determine what should happen or what ought to be.
    While positive economics describe economic programs, situations, and conditions as they exist, normative economics aims to prescribe solutions.
    Normative economics expresses ideological judgments about what may result in economic activity if public policy changes are made.
    Behavioral economics tends to be a normative project.
    Normative economics cannot be verified or tested.

    2.Ceteris paribus constant,” is a Latin phrase that is commonly translated into English as “all else being equal.”

    A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variable.
    In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect. An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one.

    Ceteris paribus assumptions help transform an otherwise deductive social science into a methodologically positive “hard” science. It creates an imaginary system of rules and conditions from which economists can pursue a specific end. Put another way; it helps the economist circumvent human nature and the problems of limited knowledge.

    Most, though not all, economists rely on ceteris paribus to build and test economic models. In simple language, it means the economist can hold all variables in the model constant and tinker with them one at a time. Ceteris paribus has its limitations, especially when such arguments are layered on top of one another. Nevertheless, it is an important and useful way to describe relative tendencies in markets.

    Suppose that you wanted to explain the price of milk. With a little thought, it becomes apparent that milk costs are influenced by numerous things: the availability of cows, their health, the costs of feeding cows, the amount of useful land, the costs of possible milk substitutes, the number of milk suppliers, the level of inflation in the economy, consumer preferences, transportation, and many other variables. So an economist instead applies ceteris paribus, which essentially says if all other factors remain constant, a reduction in the supply of milk-producing cows, for example, causes the price of milk to rise.

    Supply and Demand
    As an example, take the laws of supply and demand. Economists say the law of demand demonstrates that ceteris paribus, more goods tend to be purchased at lower prices. Or that, if demand for any given product exceeds the product’s supply, ceteris paribus, prices will likely rise. In this situation, the price of an item is the only variable that should change. All else should remain ceteris paribus. If only the price were to change, we can appropriately forecast the outcome because of the laws of supply and demand.
    Macroeconomics/GDP
    In general, economists and other social scientists will report how variables influence one another while holding all else constant. So, if we say that low unemployment is associated with higher inflation, ceteris paribus, it means holding everything else constant like GDP growth, balance of trade, money supply, and so on. However, each of these other factors, among others, also can play into inflation.

    Minimum Wage
    We can also say the same thing about the minimum wage: ceteris paribus, raising the minimum wage is thought to lower employment as businesses cut costs. But this also ignores many other social and political factors. For example, employees may work harder and be more productive with higher wages. Or, better-paid workers may spend more and increase aggregate demand.

    Interest Rates
    There is often an inverse relationship between interest rates and the demand for borrowing. This is because higher interest rates cause loans to become more expensive. Therefore, ceteris paribus, higher interest rates cause decreased demand for debt. Of course, other factors (consumer demand, consumer preference, consumer creditworthiness) are all considers that may change the outcome of the statement. However, when all factors regarding the borrower are isolated, higher interest rates mean higher loan costs which decreases demand.

    Supply Chain
    There are a tremendous amount of factors that go into a unit’s production. This includes delivery of raw materials, labor hours, equipment availability, ingredient pricing, packing and delivery, or distribution. Therefore, when considering how an item may move throughout the supply chain process, economists may make claims on outcomes assuming all other variables are constant. For example, ceteris paribus, higher raw material prices will decrease manufacturing supply if companies don’t increase their production budgets. This claim does not consider labor hours, packaging, or delivery.

    Since economic variables can only be isolated in theory and not in practice, ceteris paribus can only ever highlight tendencies, not absolutes.
    Ceteris Paribus and Economic Science
    Two major publications helped move mainstream economics from a deductive social science based on logical observations and deductions into an empirically positivist natural science. The first was Léon Walras’ Elements of Pure Economics, published in 1874, which introduced general equilibrium theory.
    2
    The second was John Maynard Keynes’ The General Theory of Employment, Interest, and Money, first published in 1936, which created modern macroeconomics.
    3

    In an attempt to be more like the academically respected “hard sciences” of physics and chemistry, economics became math-intensive. Variable uncertainty, however, was a major problem; economics could not isolate controlled and independent variables for math equations. There was also a problem with applying the scientific method, which isolates specific variables and tests their interrelatedness to prove or disprove a hypothesis.

    Economics does not naturally lend itself to scientific hypothesis testing as does physics. In the field of epistemology, scientists can learn through logical thought experiments, also called deduction, or through empirical observation and testing, also called positivism. Geometry is a logically deductive science.

    Physics is an empirically positive science. Unfortunately, economics and the scientific method are naturally incompatible. No economist has the power to control all economic actors, hold all of their actions constant, and then run specific tests. No economist can even identify all of the critical variables in a given economy. For any given economic event, there could be dozens or hundreds of potential independent variables.

    Enter ceteris paribus. Mainstream economists construct abstract models where they pretend all variables are held constant, except the one they want to test. This style of pretending, called ceteris paribus, is the crux of general equilibrium theory.
    1

    As economist Milton Friedman wrote in 1953, “theory is to be judged by its predictive power for the class of phenomena which it is intended to ‘explain.'”
    4
    By imagining all variables save one are held constant, economists can transform relative deductive market tendencies into absolute controllable mathematical progressions. Human nature is replaced with balanced equations.

    Ceteris paribus drives supply and demand curve expectations. The relationship between quantity and price can only be determined if the variables in question are influenced and the rest are held constant.

    Benefits of Ceteris Paribus
    Uses Scientific Method Approach
    Suppose an economist wants to prove a minimum wage causes unemployment or that easy money causes inflation. They could not possibly set up two identical test economies and introduce a minimum wage law or start printing dollar bills. So the positive economist, charged with testing their theories, must create a suitable framework for the scientific method, even if this means making very unrealistic assumptions. The economist assumes buyers and sellers are price-takers rather than price-makers.

    Leverages Perfect Information
    The economist also assumes actors have perfect information about their choices since any indecision or incorrect decision based on incomplete information creates a loophole in the model. If the models produced in ceteris paribus economics appear to make accurate predictions in the real world, the model is considered successful. If the models do not appear to make accurate predictions, they are revised.

    Employs Positive Economics
    This can make positive economics tricky; circumstances might exist that make one model look correct one day but incorrect a year later. Some economists reject positivism and embrace deduction as the principal mechanism of discovery. The majority, however, accept the limits of ceteris paribus assumptions, to make the field of economics more like chemistry and less like philosophy.

    Enables Price Discovery
    As economists compile data from various scenarios, static supply and demand charts are formed to devise a strategic plan of pricing, supply, or other economic factors. As a single variable is tweaked, a demand curve should be formed that allows for theoretical pricing application without having to go to market with those actual prices.

    Overcomes Impossible Scenarios
    Without ceteris paribus, many scenarios that are analyzed simply would not be able to happen. For example, consider the situation where only variable along a supply chain changes and all other variables remain static and unchanged. This situation would not able to occur in real life as so many aspects of the supply chain are uncontrollable. Therefore, ceteris paribus allows for economists and analysts to devise scenarios that would otherwise not be able to exist.

    Criticisms of Ceteris Paribus
    Overcomes Impossible Scenarios
    Ceteris paribus assumptions are at the heart of nearly all mainstream microeconomic and macroeconomic models. Even so, some critics of mainstream economics point out that ceteris paribus gives economists the excuse to bypass real problems about human nature.
    5
    Though this can be a benefit for theoretical application, these scenarios also may never play out in the real world which contests how applicable some findings may be.

    Let’s go back to the example of supply and demand, one of the favorite uses of ceteris paribus. Every introductory textbook on microeconomics shows static supply and demand charts where prices are given to both producers and consumers; that is, at a given price, consumers demand and producers supply a certain amount.

    This is a necessary step, at least in this framework, so that economics can assume away the difficulties in the price-discovery process. But prices are not a separate entity in the real world of producers and consumers. Rather, consumers and producers themselves determine prices based on how much they subjectively value the good in question versus the quantity of money for which it is traded.

    Dilutes Logical Value
    Economists admit these assumptions are highly unrealistic, and yet these models lead to concepts such as utility curves, cross elasticity, and monopoly. Antitrust legislation is actually predicated on perfect competition arguments. The Austrian school of economics believes ceteris paribus assumptions have been taken too far, transforming economics from a useful, logical social science into a series of math problems.
    5

    May Overshadow What Should Be Analyzed
    Financial consultant Frank Shostak wrote that this supply-demand framework is “detached from the facts of reality.”
    6
    Rather than solving equilibrium situations, he argued, students should learn how prices emerge in the first place. He claimed any subsequent conclusions or public policies derived from these abstract graphical representations are necessarily flawed.

    Like prices, many other factors that affect the economy or finance are continuously in flux. Independent studies or tests may allow for the use of the ceteris paribus principle. But in reality, with something like the stock market, one can never assume “all other things being equal.” There are too many factors affecting stock prices that can and do change constantly; you can’t isolate just one.

    Ignores Human Nature and Emotions
    As nice as a black and white world would be, the truth is there are too many variables tied to human nature. Humans are naturally unpredictable and act in irrational ways. Though economic laws may make sense, there are situations in which people don’t do what is theoretically the best for them to do. In these cases, items like the law of supply and the law of demand may be broken, causing any analysis to falter
    Ceteris paribus in economics is a reference to how one isolated variable may change an economic environment assuming all other variables remain the same. In economics, ceteris paribus is often highly hypothetical as national economics and macroeconomic conditions are highly intricate and complex. However, ceteris paribus is the practice of seeing how a single economic concept (i.e. inflation) can impact broader concepts.
    All things being equal, if the price of milk increases, people will buy less milk. This assumption ignores how other substitutes are behaving, how household income is behaving, or non-economic factors such as the health benefits of milk. Ceteris paribus, people will buy less of a product if the price is higher.
    Ceteris paribus is considered natural law. It is not codified by any government; instead, it is thought to naturally occur based on how certain variables interact. For example, if the United States drilled for more oil domestically, there would be more supply for gasoline and the price of gas would drop. There is no law that defines that this would happen; it’s simply assumed as the outcome based on how situations naturally flow together.
    Ceteris paribus helps determine what variables impact outcomes. By holding one variable constant or assuming that only one variable changes, it is inferred that any corresponding change is directly correlated to that single variable. Ceteris paribus may help drive metrics on customer taste, customer preference, consumer spending, the price of goods, market expectations, or government policy.
    Ceteris paribus is a broad term that defines what variables are changing or what variables are remaining the same in a given situation. Often, to isolate only one variable, economists cite ceteris paribus to clarify that their assumptions on a given outcome are only valid if all other variables are remaining the same. Though ceteris paribus is truly unlikely due to the complexity of macroeconomic factors, it may still be useful in testing variables and determining what causes outcome.

  137. Avatar Obiekwe Chikamso Benita says:

    Obiekwe Chikamso Benita
    2020/242445
    Pure and industrial chemistry
    kamsobenita2003@gmail.com

    1. Positive economics is a stream of economics that focuses on the description, quantification and explanation of economic developments, expectations and associated phenomena. It relies on objective data analysis, relevant facts and associate figures. It is objective and fact-based where the statements are precise, descriptive and clearly measurable. There are no instances of approval-disapproval in positive economics.
    An example of positive economic statement: “Government provided healthcare increases public expenditures”. The statement is fact-based and has no value judgement attached to it.
    Normative economics focuses on value-based judgements aimed at improving economic development, investment projects and the distribution of wealth. Normative economics is subjective and value-based originating from personal perspectives or opinions involved in the decision-making process. The statements of this type of economics are rigid and prescriptive in nature.
    An example of a normative economic statement is, “The government should provide basic healthcare to all citizens”. The statement is value-based, rooted in personal perspective and satisfies the requirement of what “should be”.
    Therefore, Normative economics focuses on the value of economic fairness or what the economy “should be” or “ought to be”
    While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgements.

    2. Ceteris paribus is a Latin phrase with meaning, “holding other things constant” and translated into English as “all else being equal”.
    In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same. It is used when making arguments about cause and effect.
    An economist might say raising the minimum wage, increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one. It creates an imaginary system of rules and conditions from which economists can pursue a specific end. Put another way ; it helps the economist circumvent human nature and the problems of limited knowledge.

  138. Avatar Umehonyefosim mercy chinelo says:

    1) THE DIFFERENCE BETWEEN POSITIVE AND NORMATIVE ECONOMICS
    Positive economics is concerned with ” what is” and it do not involve value jugdement.They are statement about”what is,what was or what will be” it focus on statement with matter and fact and what is happening. While
    Normative economics is concerned with “what ought to be” .if an economist suggest that the government ought to try hard to reduce the level of unemployment and the level of inflation.This is a normative statement.when economist says that the government ought to do something this involves their making judgement about the value of various things that the government could do with it’s limited resources.

    CONCEPT ANALYSIS OF CETERUS PARIBUS IN ECONOMICS AND IT’S PRACTICAL ILLUSTRATION
    In economics context the use of ceteris paribus is first invented by petrus Olivia in 1295 in the 16th century. The assumption latin words ‘being all unchanged or held constant ” It is important in determining causation and in helping or isolation multiple independent variables affecting a dependent variable.
    However, all things being equal (ceteris paribus) in economics is referred to how how one isolated variable changes an economic environment when all other variable remain the same.it is highly hypothetical like macroeconomic condition and national economic which are highly intricated and wide or complex.
    Ceteris paribus people will buy less of a product if the price is higher.for instances, if the price of milk increases people will buy less milk.this assumption ignores how other substitutes are behaving or house hold income is reacting or even the non- economic factors such as the health benefits of milk. Another example is that economics as a law of supply: Accordingly to the law an increase in price result in an increase in quantity supplied, when keeping others factor constant or ceteris paribus.

    In conclusion, ceteris paribus is practically more of how a simple economic concept such as inflation can impact broader concept.

  139. Avatar Okafor Francisca Ijeoma says:

    Name: Okafor Francisca Ijeoma
    Registration number: 10578107AF
    Department: Economics
    Academic Session: 2021/2022
    Assignment Given On Eco 101: Understanding Normative And Positive Economics And Ceteris Paribus.

    Positive And Normative Economics
    What is Positive Economics?
    Positive Economics is a simple statement about what is, what was or will be often written in “If ………then”. If A happens then B will follow. It is very essential cause it allows us to test statement with data. It is written or spoken in a way that allow it to be treated with data. You can use the data, look at the numbers to see if the statement is true or false.
    Another essential note to know is that Positive statement is not always true. It can also be false statement.

    What is Normative Economics?
    Normative Economics are values, opinions and judgements. It often goes with a phrase that says “I think we should do this” or “We ought to do that”. “Do we think this is good or bad”. It is an opinion that cannot be tested to be true or false.

    Examples Of Positive Economics
    ▪︎Programs like welfare reduce the incentive for people to work.
    ▪︎Raising taxes on the wealthy to pay for government programs grows the economy.
    ▪︎Raising taxes on the wealthy slows economic growth.
    Examples Of Normative Economics
    ▪︎Paying people who aren’t working even though they could work is wrong and unfair.
    ▪︎The government should raise taxes on wealthy to pay for helping the poor.

    Advantages And Disadvantages Of Positive
    Economics
    Positive Economics deeply and logically analysis the causing effect between variables. It is described and explained with the help of statistical data.
    Advantages: The advantages of Positive Economics include the fact that the choices of Positive Economics are based on true data. Therefore, they can be used for real purposes rather than in making decisions in fancy. As there is no value judgements in Positive Economics, individuals can make better economic decisions as the facts of Positive Economics are based on facts.
    Disadvantages: Disadvantages of Positive Economics include the fact that people often decide based on emotions rather than depending on data. So, Positive Economics is often overlooked. Moreover, having a present or past fact does not mean that future facts will be similar. So, Positive Economics cannot be 100% accurate in measuring economic outcomes.

    NAdvantages And Disadvantages Of Normative
    Economics
    Normative Economics encompasses judgements which suggests “What ought to be” done in specific situation.
    Advantages: The advantages of Normative analysis include the freedom to make choices. As Normative Economics is based on ideas, it is not necessary for economists to be 100% accurate in their judgements.
    Disadvantages: The same stated above can be considered a disadvantage in some situations too. Disadvantages include too many variations from real situations and unrealistic considerations that cannot be applied to real lives.

    Differences Between Positive And Normative
    Economics
    ▪︎Positive Economics is descriptive in nature while Normative Economics is prescriptive in nature.
    ▪︎Positive Economics is based on scientific logic and facts while Normative Economics is based on individual opinions and values.
    ▪︎Positive Economics clearly explains economic problem and issues while Normative Economics provides solutions for economic problems based on value.
    ▪︎Positive Economics is described by classical economists while Normative Economics is described by neo – classical economists.
    ▪︎Positive Economics statement can be tested and verified while Normative Economics statement cannot be tested and verified.

    Conclusion
    Both Positive and Normative Economics has their own merits and demerits and they can be used in different aspects to get better results. Some may argue that Positive Economics is better than Normative Economics as it deals with facts, but sometimes dealing with ideas is also important.
    In a nutshell, using Positive and Normative Economics to their full potential can lead an economy to obtain the highest value in the long run.

    Ceteris Paribus
    What is Ceteris Paribus?
    Ceteris Paribus is a Latin phrase generally used by saying “All other things being equal”. Ceteris Paribus is often used when making arguments about case and effect. The world is so complex, it’s basically impossible to consider every possible variable. So, Ceteris Paribus assumption simplifies the equation so that the direct effect of X on Y can be isolated.

    Examples Of Ceteris Paribus
    ▪︎If the price of Pepsi falls, Ceteris Paribus, it’s demand will increase.
    ▪︎If I increase the price of a product, Ceteris Paribus, what will happen to demand?
    ▪︎if the minimum wage is increased, what will happen to productivity?
    Importance Of Ceteris Paribus
    ▪︎In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.
    ▪Many economists rely on Ceteris Paribus to describe relative tendencies in markets and to build and test economic models.
    ▪︎It helps us to develop some form of understanding of economic mechanisms.
    ▪︎It allows us to form a basic understanding and principle by which we can build on.

    Conclusion
    Although the real world is generally too messy to test economic theories that rely on Ceteris Paribus assumptions, there are ways to get around this. Behavioral economists design experiments that essentially create Ceteris Paribus conditions within a controlled laboratory setting. Participants in the experiments are asked to make decisions under certain conditions. The experiments is then able to isolate the direct effects of policy changes by altering one condition at a time while holding all else equal: Ceteris Paribus!.

  140. Avatar omeogo mmesoma esther says:

    omeogo mmesoma esther
    reg no-2021/245468,
    e-mail-mmesomae464@gmail.com.
    department of social science education(unit-economics and education)

    1=positive economics describes and explain various economics phenomenom and is based on facts and data and cant be approved or disapproved ;it can equallybe tested and data and economic model built to conclude if it is true or not ;while normative economics is focused on the value of economic fairness ,what the economy should be or ought to be ,it is based on value judgement ,it is more like an opinion and cannot be truly tested.
    2=ceteris paribus is where all variables are equal;it is used to explain the theory behind the law of economics and nature for example if the price of yam decreases then the demand of yam increases if all factors or variables are not considered or do not change (remains the same ).

  141. Avatar Okafor Francisca Ijeoma says:

    Name: Okafor Francisca Ijeoma
    Registration number: 10578107AF
    Department: Economics
    Academic Session: 2021/2022
    Assignment Given On Eco 101: Understanding Normative And Positive Economics And Ceteris Paribus.

    Positive And Normative Economics
    What is Positive
    Economics?
    Positive Economics is a simple statement about what is, what was or will be often written in “If ………then”. If A happens then B will follow. It is very essential cause it allows us to test statement with data. It is written or spoken in a way that allow it to be treated with data. You can use the data, look at the numbers to see if the statement is true or false.
    Another essential note to know is that Positive statement is not always true. It can also be false statement.

    What is Normative Economics?
    Normative Economics are values, opinions and judgements. It often goes with a phrase that says “I think we should do this” or “We ought to do that”. “Do we think this is good or bad”. It is an opinion that cannot be tested to be true or false.

    Examples Of Positive Economics
    ▪︎Programs like welfare reduce the incentive for people to work.
    ▪︎Raising taxes on the wealthy to pay for government programs grows the economy.
    ▪︎Raising taxes on the wealthy slows economic growth.

    Examples Of Normative Economics
    ▪︎Paying people who aren’t working even though they could work is wrong and unfair.
    ▪︎The government should raise taxes on wealthy to pay for helping the poor.

    Advantages And Disadvantages Of
    Positive Economics
    Positive Economics deeply and logically analysis the causing effect between variables. It is described and explained with the help of statistical data.
    Advantages: The advantages of Positive Economics include the fact that the choices of Positive Economics are based on true data. Therefore, they can be used for real purposes rather than in making decisions in fancy. As there is no value judgements in Positive Economics, individuals can make better economic decisions as the facts of Positive Economics are based on facts.
    Disadvantages: Disadvantages of Positive Economics include the fact that people often decide based on emotions rather than depending on data. So, Positive Economics is often overlooked. Moreover, having a present or past fact does not mean that future facts will be similar. So, Positive Economics cannot be 100% accurate in measuring economic outcomes.

    Advantages And Disadvantages Of
    Normative Economics
    Normative Economics encompasses judgements which suggests “What ought to be” done in specific situation.
    Advantages: The advantages of Normative analysis include the freedom to make choices. As Normative Economics is based on ideas, it is not necessary for economists to be 100% accurate in their judgements.
    Disadvantages: The same stated above can be considered a disadvantage in some situations too. Disadvantages include too many variations from real situations and unrealistic considerations that cannot be applied to real lives.

    Differences Between Positive And
    Normative Economics
    ▪︎Positive Economics is descriptive in nature while Normative Economics is prescriptive in nature.
    ▪︎Positive Economics is based on scientific logic and facts while Normative Economics is based on individual opinions and values.
    ▪︎Positive Economics clearly explains economic problem and issues while Normative Economics provides solutions for economic problems based on value.
    ▪︎Positive Economics is described by classical economists while Normative Economics is described by neo – classical economists.
    ▪︎Positive Economics statement can be tested and verified while Normative Economics statement cannot be tested and verified.

    Conclusion
    Both Positive and Normative Economics has their own merits and demerits and they can be used in different aspects to get better results. Some may argue that Positive Economics is better than Normative Economics as it deals with facts, but sometimes dealing with ideas is also important.
    In a nutshell, using Positive and Normative Economics to their full potential can lead an economy to obtain the highest value in the long run.

    Ceteris Paribus
    What is Ceteris Paribus?
    Ceteris Paribus is a Latin phrase generally used by saying “All other things being equal”. Ceteris Paribus is often used when making arguments about case and effect. The world is so complex, it’s basically impossible to consider every possible variable. So, Ceteris Paribus assumption simplifies the equation so that the direct effect of X on Y can be isolated.

    Examples Of Ceteris Paribus
    ▪︎If the price of Pepsi falls, Ceteris Paribus, it’s demand will increase.
    ▪︎If I increase the price of a product, Ceteris Paribus, what will happen to demand?
    ▪︎if the minimum wage is increased, what will happen to productivity?

    Importance Of Ceteris Paribus
    ▪︎In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.
    ▪Many economists rely on Ceteris Paribus to describe relative tendencies in markets and to build and test economic models.
    ▪︎It helps us to develop some form of understanding of economic mechanisms.
    ▪︎It allows us to form a basic understanding and principle by which we can build on.

    Conclusion
    Although the real world is generally too messy to test economic theories that rely on Ceteris Paribus assumptions, there are ways to get around this. Behavioral economists design experiments that essentially create Ceteris Paribus conditions within a controlled laboratory setting. Participants in the experiments are asked to make decisions under certain conditions. The experiments is then able to isolate the direct effects of policy changes by altering one condition at a time while holding all else equal: Ceteris Paribus!.

  142. Avatar Okafor Francisca Ijeoma says:

    Name: Okafor Francisca Ijeoma
    Registration number: 10578107AF
    Department: Economics
    Academic Session: 2021/2022
    Assignment Given On Eco 101: Understanding Normative And Positive Economics And Ceteris Paribus.
    Positive And Normative Economics
    What is Positive Economics?
    Positive Economics is a simple statement about what is, what was or will be often written in “If ………then”. If A happens then B will follow. It is very essential cause it allows us to test statement with data. It is written or spoken in a way that allow it to be treated with data. You can use the data, look at the numbers to see if the statement is true or false.
    Another essential note to know is that Positive statement is not always true. It can also be false statement.
    What is Normative Economics?
    Normative Economics are values, opinions and judgements. It often goes with a phrase that says “I think we should do this” or “We ought to do that”. “Do we think this is good or bad”. It is an opinion that cannot be tested to be true or false.
    Examples Of Positive Economics
    ▪︎Programs like welfare reduce the incentive for people to work.
    ▪︎Raising taxes on the wealthy to pay for government programs grows the economy.
    ▪︎Raising taxes on the wealthy slows economic growth.
    Examples Of Normative Economics
    ▪︎Paying people who aren’t working even though they could work is wrong and unfair.
    ▪︎The government should raise taxes on wealthy to pay for helping the poor.
    Advantages And Disadvantages Of Positive
    Economics
    Positive Economics deeply and logically analysis the causing effect between variables. It is described and explained with the help of statistical data.
    Advantages: The advantages of Positive Economics include the fact that the choices of Positive Economics are based on true data. Therefore, they can be used for real purposes rather than in making decisions in fancy. As there is no value judgements in Positive Economics, individuals can make better economic decisions as the facts of Positive Economics are based on facts.
    Disadvantages: Disadvantages of Positive Economics include the fact that people often decide based on emotions rather than depending on data. So, Positive Economics is often overlooked. Moreover, having a present or past fact does not mean that future facts will be similar. So, Positive Economics cannot be 100% accurate in measuring economic outcomes.
    Advantages And Disadvantages Of Normative
    Economics
    Normative Economics encompasses judgements which suggests “What ought to be” done in specific situation.
    Advantages: The advantages of Normative analysis include the freedom to make choices. As Normative Economics is based on ideas, it is not necessary for economists to be 100% accurate in their judgements.
    Disadvantages: The same stated above can be considered a disadvantage in some situations too. Disadvantages include too many variations from real situations and unrealistic considerations that cannot be applied to real lives.
    Differences Between Positive And Normative
    Economics
    ▪︎Positive Economics is descriptive in nature while Normative Economics is prescriptive in nature.
    ▪︎Positive Economics is based on scientific logic and facts while Normative Economics is based on individual opinions and values.
    ▪︎Positive Economics clearly explains economic problem and issues while Normative Economics provides solutions for economic problems based on value.
    ▪︎Positive Economics is described by classical economists while Normative Economics is described by neo – classical economists.
    ▪︎Positive Economics statement can be tested and verified while Normative Economics statement cannot be tested and verified.
    Conclusion
    Both Positive and Normative Economics has their own merits and demerits and they can be used in different aspects to get better results. Some may argue that Positive Economics is better than Normative Economics as it deals with facts, but sometimes dealing with ideas is also important.
    In a nutshell, using Positive and Normative Economics to their full potential can lead an economy to obtain the highest value in the long run.
    Ceteris Paribus
    What is Ceteris Paribus?
    Ceteris Paribus is a Latin phrase generally used by saying “All other things being equal”. Ceteris Paribus is often used when making arguments about case and effect. The world is so complex, it’s basically impossible to consider every possible variable. So, Ceteris Paribus assumption simplifies the equation so that the direct effect of X on Y can be isolated.
    Examples Of Ceteris Paribus
    ▪︎If the price of Pepsi falls, Ceteris Paribus, it’s demand will increase.
    ▪︎If I increase the price of a product, Ceteris Paribus, what will happen to demand?
    ▪︎if the minimum wage is increased, what will happen to productivity?
    Importance Of Ceteris Paribus
    ▪︎In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.
    ▪Many economists rely on Ceteris Paribus to describe relative tendencies in markets and to build and test economic models.
    ▪︎It helps us to develop some form of understanding of economic mechanisms.
    ▪︎It allows us to form a basic understanding and principle by which we can build on.
    Conclusion
    Although the real world is generally too messy to test economic theories that rely on Ceteris Paribus assumptions, there are ways to get around this. Behavioral economists design experiments that essentially create Ceteris Paribus conditions within a controlled laboratory setting. Participants in the experiments are asked to make decisions under certain conditions. The experiments is then able to isolate the direct effects of policy changes by altering one condition at a time while holding all else equal: Ceteris Paribus

  143. Avatar Okoro Tope says:

    gggggggggdhdudg

  144. Avatar Eze ifeoma Ruth, Reg number 10980982JH, Department: public administration and local government, course code Eco 101 says:

    No1
    Positive economics is fact and objective based.in positive analysis we gain fact, what it is e.g I’m a female. This is a fact that you can prove or disapprove it.positive economic statements must not be correct but they must be tested and proved or disapproved. On the other hand normative economics is subjective and value based. In normative analysis we gain opinion judgement, we ask questions like what should be or what ought to be e.g girls are cooler than boys, it is an opinion and there’s no way we can prove wether it’s true. This makes it a normative statement.
    Disagreementsover public policies typically revolve around normative economic statements and the disagreements persist because neither side can prove that it’s correct or that its opponent is incorrect.
    Further differences between normative economics and positive economics.
    Positive economics can be proved or verified while normative economics can’t be proved.
    Positive economics is objective while normative economics is subjective.
    Positive economics is fact based while normative economics is not fact based.
    No2
    Ceteris paribus is a word gotten from Latin word that means all things being equal, unchanged or can.it is used in economics to rule out the factor the possibility of other factors changing, that is the casual relation between two variables is focused. Ceteris paribus is the economic law of supply, in the law an increase in price results in an increase in quantity e.g if the price of toothpaste fails there will be an increase demand.

  145. Avatar ORJI EVAN CHINAZA says:

    Positive economics makes use of data,facts and figures, while normative does not.
    Normative economics focuses more on personal perspectives and opinion.
    Positive economics is objective, but normative economics is subjective.

    Ceteris paribus which we all know is a Latin word meaning “all things being equal” .Then in economics,it is applied or used in the economic law of demand and supply,which state that “all things being equal ” the higher the price,the higher the quantity supplied.
    Then the lower the price the higher the quantity demanded

  146. Avatar Okafor Francisca Ijeoma says:

    Name: Okafor Francisca Ijeoma
    Registration number: 10578107AF
    Department: Economics
    Academic Session: 2021/2022
    Assignment Given On Eco 101: Understanding Normative And Positive Economics And Ceteris Paribus.

    Positive And Normative Economics
    What is Positive Economics?
    Positive Economics is a simple statement about what is, what was or will be often written in “If ………then”. If A happens then B will follow. It is very essential cause it allows us to test statement with data. It is written or spoken in a way that allow it to be treated with data. You can use the data, look at the numbers to see if the statement is true or false.
    Another essential note to know is that Positive statement is not always true. It can also be false statement.

    What is Normative Economics?
    Normative Economics are values, opinions and judgements. It often goes with a phrase that says “I think we should do this” or “We ought to do that”. “Do we think this is good or bad”. It is an opinion that cannot be tested to be true or false.

    , Examples Of Positive Economics
    ▪︎Programs like welfare reduce the incentive for people to work.
    ▪︎Raising taxes on the wealthy to pay for government programs grows the economy.
    ▪︎Raising taxes on the wealthy slows economic growth.

    Examples Of Normative Economics
    ▪︎Paying people who aren’t working even though they could work is wrong and unfair.
    ▪︎The government should raise taxes on wealthy to pay for helping the poor.

    Advantages And Disadvantages Of Positive
    Economics
    Positive Economics deeply and logically analysis the causing effect between variables. It is described and explained with the help of statistical data.
    Advantages: The advantages of Positive Economics include the fact that the choices of Positive Economics are based on true data. Therefore, they can be used for real purposes rather than in making decisions in fancy. As there is no value judgements in Positive Economics, individuals can make better economic decisions as the facts of Positive Economics are based on facts.
    Disadvantages: Disadvantages of Positive Economics include the fact that people often decide based on emotions rather than depending on data. So, Positive Economics is often overlooked. Moreover, having a present or past fact does not mean that future facts will be similar. So, Positive Economics cannot be 100% accurate in measuring economic outcomes.

    Advantages And Disadvantages Of Normative
    Economics
    Normative Economics encompasses judgements which suggests “What ought to be” done in specific situation.
    Advantages: The advantages of Normative analysis include the freedom to make choices. As Normative Economics is based on ideas, it is not necessary for economists to be 100% accurate in their judgements.
    Disadvantages: The same stated above can be considered a disadvantage in some situations too. Disadvantages include too many variations from real situations and unrealistic considerations that cannot be applied to real lives.

    Differences Between Positive And Normative
    Economics
    ▪︎Positive Economics is descriptive in nature while Normative Economics is prescriptive in nature.
    ▪︎Positive Economics is based on scientific logic and facts while Normative Economics is based on individual opinions and values.
    ▪︎Positive Economics clearly explains economic problem and issues while Normative Economics provides solutions for economic problems based on value.
    ▪︎Positive Economics is described by classical economists while Normative Economics is described by neo – classical economists.
    ▪︎Positive Economics statement can be tested and verified while Normative Economics statement cannot be tested and verified.

    Conclusion
    Both Positive and Normative Economics has their own merits and demerits and they can be used in different aspects to get better results. Some may argue that Positive Economics is better than Normative Economics as it deals with facts, but sometimes dealing with ideas is also important.
    In a nutshell, using Positive and Normative Economics to their full potential can lead an economy to obtain the highest value in the long run.

    Ceteris Paribus
    What is Ceteris Paribus?
    Ceteris Paribus is a Latin phrase generally used by saying “All other things being equal”. Ceteris Paribus is often used when making arguments about case and effect. The world is so complex, it’s basically impossible to consider every possible variable. So, Ceteris Paribus assumption simplifies the equation so that the direct effect of X on Y can be isolated.

    Examples Of Ceteris Paribus
    ▪︎If the price of Pepsi falls, Ceteris Paribus, it’s demand will increase.
    ▪︎If I increase the price of a product, Ceteris Paribus, what will happen to demand?
    ▪︎if the minimum wage is increased, what will happen to productivity?
    Importance Of Ceteris Paribus
    ▪︎In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.
    ▪Many economists rely on Ceteris Paribus to describe relative tendencies in markets and to build and test economic models.
    ▪︎It helps us to develop some form of understanding of economic mechanisms.
    ▪︎It allows us to form a basic understanding and principle by which we can build on.

    Conclusion
    Although the real world is generally too messy to test economic theories that rely on Ceteris Paribus assumptions, there are ways to get around this. Behavioral economists design experiments that essentially create Ceteris Paribus conditions within a controlled laboratory setting. Participants in the experiments are asked to make decisions under certain conditions. The experiments is then able to isolate the direct effects of policy changes by altering one condition at a time while holding all else equal: Ceteris Paribus!.

  147. Avatar Ononuju uchenna Esther says:

    Name: ononuju uchenna Esther
    Reg no 2021/243238
    Unit economics education
    What Is Normative Economics?
    Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarioNormative economics aims to determine people’s desirability or the lack thereof to various economic programs, situations, and conditions by asking what should happen or what ought to be. Therefore, normative statements typically present an opinion-based analysis in terms of what is thought to be desirable. For example, stating that the government should strive for economic growth of x% or inflation of y% could be seen as normative.
    IMPORTANCE OF NORMATIVE ECONOMICS
    Normative economics is important because it can help determine people’s desire for various economic situations. It allows those in leadership positions to better understand others’ economic preferences and how the public may react to their decisionsNormative Decision Making:
    The normative approach to decision making predicts the outcomes of taking an option by factoring in assumptions to determine if it leads to optimal results. It is value-based and objective.

    Answer and Explanation:
    This approach is advantageous in that it offers prescriptive pragmatics for maximizing the utility of options. It provides rational standards for cultural behavior via objective, numerical data, and thus yields the benefits of well-executed game theory. This approach exploits the practical nature of data, and its proponents rely on analysis software and models to determine metrics regarding marginal costs, inventory and pricing.

    This approach presents some minor disadvantages. Decision-makers often rely on assumptions and operate under incomplete knowledge. For example, the Dupont analysis does not inform investors of the opportunity costs involved when evaluating profitability.
    POSITIVE ECONOMICS

    ‘Positive economics’ refers to the view that economic theories consistent with all conceivable observations are empirically empty and that empirically useful theories need to be consistent with existing observations (thus passing the ‘sunrise test’) and predict something new. It is neither logical positivist, nor operationalist, nor naïve falsificationist; nor is it based on strict dichotomies between positive and normative statements and between positive analysis and normative advice. It rejects the views that theories can assist understanding the world without making refutable statements about it; that theories can be criticized only on their own terms; and that all distinctions inhibit useful.

    Milton Friedman’s book Essays in Positive Economics (1953) is a collection of earlier articles by the author with as its lead an original essay “The Methodology of Positive Economics.” This essay posits Friedman’s famous, but controversial, principle (called the F-Twist by Samuelson) that assumptions need not be “realistic” to serve as scientific hypotheses; they merely need to make significant predictions.

    Definition
    What is Ceteris Paribus
    Definition: This commonly-used phrase stands for ‘all other things being unchanged or constant’. It is used in economics to rule out the possibility of ‘other’ factors changing, i.e. the specific causal relation between two variables is focused.

    Description: This Latin phrase is generally used for saying ‘with other things being the same’. It is particularly crucial in the study of cause and effect relationship between two specific variables such that other relevant factors

  148. Avatar Nnam Leonard Tochukwu. 2020/241375 says:

    1a). Positive economics describes and explains various economic phenomena. But
    Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgements.
    Positive economics is called the “what is” branch of economics. While
    Normative economics, on the other hand, is considered the branch of economics that tries to determine the desirability of different economic programs and conditions by asking what “should” or what “ought” to be

    2.) Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “ALL THINGS BEING EQUAL”
    Practically mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant).
    In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.
    Ceteris paribus is related to demand as if everything related to demand varies too often. Therefore, the uncertainty in demand will be quite large, like if cancer becomes the cause of monkeypox due to eating chicken.

  149. Avatar Odoh chikamso maryann says:

    Name: odoh chikamso maryann
    Reg no: 2021/242478
    No2
    Understanding Ceteris Paribus
    In the fields of economics and finance, ceteris paribus is often used when making arguments about cause and effect. An economist might say raising the minimum wage increases unemployment, increasing the supply of money causes inflation, reducing marginal costs boosts economic profits for a company, or establishing rent control laws in a city causes the supply of available housing to decrease. Of course, these outcomes can be influenced by a variety of factors, but using ceteris paribus allows all other factors to remain constant, focusing on the impact of only one.An example of ceteris Paribus is if the price of beef increases the demand for beef will decrease.
    No1
    To put it simply, positive economics is called the “what is” branch of economics. Normative economics, on the other hand, is considered the branch of economics that tries to determine the desirability of different economic programs and conditions by asking what “should” or what “ought” to be.
    Though normative statements are generalized and subjective in nature, they act as the necessary channels for out-of-the-box thinking. Such opinions can form the foundation for any necessary changes that may have the potential to completely transform a particular project.

    But normative economics cannot be the sole basis for decision-making on key economic fronts. Positive economics fills in for the objective angle that focuses on facts and cause-and-effect. Coupled with positive economics, normative economics may be useful in establishing, generating, and fulfilling new ideas and theories for different economic goals and perspectives.
    A clear understanding of the difference between positive and normative economics may lead to better policy-making if policies are made based on a balanced mix of facts (positive economics) and opinions (normative economics). Nonetheless, numerous policies on issues ranging from international trade to welfare are at least partially based on normative economics.

  150. Avatar IDIKA DIVINE UDUMA says:

    NAME: IDIKA DIVINE UDUMA
    DEPARTMENT: NURSING SCIENCE
    REG NO: 2021/244496

    1. Positive Economics is the study of what and why an economy operates as it does. It is also known as Descriptive economics and is based on facts which can be subjected to scientific analysis in order for them to be accepted.
    It is based on factual information and uses statistical data, and scientific formula in determining how an economy should be. It deals with the relationship between cause and effect and can be tested. While;

    Normative Economics is the study of how the economy should be. It is also known as Policy economics wherein normative statements like opinions and judgments are used. It determines the ideal economy by discussion of ideas and judgments.
    In normative economics, people state their opinions and judgments without considering the facts. They make distinctions between good and bad policies and the right and wrong courses of action by using their judgments.

    2. Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “all else being equal.” It acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant).
    Examples:
    a. If the price of milk increases, people will buy less milk.
    b. When the minimum wage increase (ceteris paribus), demand for such workers will decrease. The logic is that employers will have to pay their employees more, so will hire fewer of them.

  151. Avatar Orih somtochukwu faithful says:

    me: Orih somtochukwu faithful. Reg number:2021/242480.department: nursing
    *Differences between normative economics and positive economics*
    Positive and Normative Economics is rightly known as the two arms of Economics. Positive economics deals with various economic phenomena, while normative economics focuses on what economics should be, this branch of economics talks about the value of the company’s fairness. In lucid language, positive economics answers the ‘what’ factor, whereas normative economics mandates the ‘should be’ or ‘ought to be’ section of economics.
    The differences between positive and normative economics are explained in the points given below:
    1).Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment.
    2).Positive economics is descriptive, but normative economics is prescriptive.
    3).Positive economics explains cause and effect relationship between variables. On the other hand, normative economics pass value judgments.
    4).The perspective of positive economics is objective while normative economics have a subjective perspective.
    5).Positive economics explains ‘what is’ whereas normative economics explains ‘what should be’.
    6).The statements of positive economics can be scientifically tested, proved or disproved, which cannot be done with statements of normative economics.
    7).positive economics clearly define economic issues. Unlike normative economics, in which the remedies are provided for the economic issues, on the basis of value judgment.
    * Lucidly discuss and analyse the concept of ceteris paribus in economics with example*
    Ceteris paribus a Latin phrase, meaning “other things equal”; some other English translations of the phrase are “all other things being equal”, “other things held constant”, “all else unchanged”, and “all else being equal”. A statement about a causal, empirical, or logical relation between two states of affairs is ceteris paribus if it is acknowledged that the statement, although usually accurate in expected conditions, can fail because of, or the relation can be abolished by, intervening factors.
    Economics’ ceteris paribus conditions include:
    1) .The number of consumers in the market
    2) .Consumer tastes or preferences
    3) .prices of substitute goods
    4) .consumer price expectations
    5). Personal income
    One of the disciplines in which ceteris paribus clauses are most widely used is economics, in which they are employed to simplify the formulation and description of economic outcomes. When using ceteris paribus in economics, one assumes that all other variables except those under immediate consideration are held constant. For example, it can be predicted that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease. In this example, the clause is used to operationally describe everything surrounding the relationship between both the price and the quantity demanded of an ordinary good.
    This operational description intentionally ignores both known and unknown factors that may also influence the relationship between price and quantity demanded, and thus to assume ceteris paribus is to assume away any interference with the given example. Such factors that would be intentionally ignored include: a change in the price of substitute goods, (e.g., the price of pork or lamb); a change in the level of risk aversion among buyers (e.g., due to an increase in the fear of mad cow disease); and a change in the level of overall demand for a good regardless of its current price (e.g., a societal shift toward vegetarianism).
    example in economics is “If the price of milk falls, ceteris paribus, the demand for milk will rise.” This means that, if other factors, such as deflation, pricing objectives, utility, and marketing methods, do not change, the decrease in the price of milk will lead to an increase in demand for it.

  152. Avatar Nnam Leonard Tochukwu... 2020/241375 says:

    1a). Positive economics describes and explains various economic phenomena. But
    Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgements.
    B. Positive economics is called the “what is” branch of economics. While
    Normative economics, on the other hand, is considered the branch of economics that tries to determine the desirability of different economic programs and conditions by asking what “should” or what “ought” to be

    2. Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “ALL THINGS BEING EQUAL”
    Practically mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.
    Ceteris paribus is related to demand as if everything related to demand varies too often. Therefore, the uncertainty in demand will be quite large, like if cancer becomes the cause of monkeypox due to eating chicken.

  153. Avatar Moka Nmesoma Chinecherem, Reg no: 2020/241549, Dept: Nursing Science. says:

    ECO 101 Assignment
    Name: Moka Nmesoma Chinecherem
    Reg no: 2020/241549
    Department: Nursing Science.

    Question 1: Difference between Positive and Normative Economics:
    Positive Economics:
    1. A part of Economics grounded on information and certainty: Positive economics is built on one sole tenet, which is to focus on facts and consider cause-and-effect behavioral relationships to explain situations in an economy and also make future projections.There are no instances of approval-disapproval in positive economics.
    2. Objective: Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. These statements can be measured against tangible evidence or historical instances.
    3. Statements can be tested: Positive economic statements are objective theories and therefore can be verified to know whether it is true or false.
    4. Evidently Elucidates the economic concerns and issues: Positive Economics is a part of economics that contemplates the explanation and elucidation of economic occurrence. It concentrates on certainty and cause-and-effect behavioural association, and incorporates the development and trial of economics thesis.
    while:
    Normative Economics:
    1. A part of Economics grounded on values, perspective and discernment: Normative statements are based on theory and opinion and reflect a viewpoint of how things should work or are supposed to happen. Normative statements are derived from the economist’s personal viewpoint, and stick to a strict structure that portrays an opinionated tone.
    2. Subjective: normative economics focuses on opinions and theoretical scenarios rather than actual facts. It is originating from personal perspectives or opinions involved in the decision-making process. It can be biased based on the author’s interpretation of the data.
    3. Statements cannot be tested: Normative economics is also known as policy economics, as it takes into account individual opinions and preferences. Hence, the statements can neither be proven right nor wrong.
    4. Provides a solution for the economic concerns, based on the value: Normative economics focuses on value-based judgements aimed at improving economic development, investment projects, and the distribution of wealth.

    Question 2: Concept of Ceteris Paribus:

    Ceteris paribus means all external factors acting on a variable subject are assumed to remain unchanged/constant while testing its relationship with other variable subjects. It measures the cause and effect in a relationship between two separate economic variables using probability and tendency knowledge.
    It is the most widely used and dominant concept in economics and finance for analysis of economic theory. It cannot predict anything with certainty or absoluteness. However, it provides a base for the possible way to determine causal relations.
    In economics, all the variables are constantly changing; this concept helps to understand any economic or financial mechanisms. Economists and financial analysts find it difficult to factor in all the dynamic variables together simultaneously and then study the variables’ relationship. Studying such relationships leads to chaos and complexity in the calculations. Moreover, this concept points out some important factors.
    Example includes price that directly impacts the connection between two variables like supply and demand.The price factor can associate multiple variables responsible for the change in demand for a commodity. Likewise, supply always increases when the demand for a product rise, provided other things like input cost, wages, and taxes remain the same. Thus, ceteris paribus comes into play, and one can say that supply falls whenever demand falls.

    PRACTICAL EXAMPLES OF APPLICATION OF CETERIS PARIBUS:
    1)When the price of a certain mobile phone, for example, iPhone manufactured by Apple Inc., decreases, it is assumed that its demand will increase more in the market. So, if a customer goes to an Apple store and finds that iPhones have 50% off on their base price, then one may buy more than one iPhone.

    2)Also, economists predict that if the price of pizza increases, other variables remain constant, and buyers will demand a lesser quantity of pizza. Here, if we consider some unknown factors like if the buyers like to consume pizza and if it gives them a high utility, then they will not give up on the consumption even if prices increase.

    Thus, ceteris paribus is a simple tool to assess the relation between demand and supply, but only when other factors remain constant.

  154. Avatar Nnam Leonard Tochukwu... 2020/241375 says:

    1a). Positive economics describes and explains various economic phenomena. But
    Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgements.
    B). Positive economics is called the “what is” branch of economics. While
    Normative economics, on the other hand, is considered the branch of economics that tries to determine the desirability of different economic programs and conditions by asking what “should” or what “ought” to be

    2. Ceteris paribus, literally “holding other things constant,” is a Latin phrase that is commonly translated into English as “ALL THINGS BEING EQUAL”
    Practically mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same (constant). In the scientific sense, if we claim that one variable influences another, ceteris paribus, we are essentially controlling for the effects of some other variables.
    Ceteris paribus is related to demand as if everything related to demand varies too often. Therefore, the uncertainty in demand will be quite large, like if cancer becomes the cause of monkeypox due to eating chicken

  155. Avatar Nnam Leonard Tochukwu... 2020/241375 says:

    1a) Positive economics describe and explains various economic phenomena. While
    Normative economic focuses on the value of economic fairness, or it can also be what the economy “ought to be” or “should b”
    b). Positive economics can be called the branch of economics. But
    Normative economics can be considered to the branch of economics that tries to determine the desirability of the different economic programs
    2). Ceteris Paribus literally “holding other things constant”, is a Latin phrase that is commonly translated into English as “ALL ELSE BEING EQUAL” It is related to demand as if everything related to demand varies too often. Therefore, the uncertainty in demand will be quite large, like if Cancer becomes the case of monkey pox box due to eating chicken.
    Practically, in the scientific sense if we claim that one variables influence another, ceteris Paribus we are essentially controlling for the effects of some other variables.

  156. Avatar Offordile Divine Favour. C. says:

    Offordile Divine Favour. C.
    Nursing sciences
    2021/242479

  157. Avatar Nwachukwu Josephine Oluchi says:

    NAME:- NWACHUKWU JOSEPHINE OLUCHI
    DEPARTMENT:- NURSING SCIENCE
    REG NO:- 244501

    Positive economics and normative economics are two standard branches of modern economics.

    Positive Economics

    This was popularized by the economist Milton Friedman, who said that economic science should objectively analyze data without any bias or agenda.
    Positive economics is a stream of economics that focuses on the description, quantification, and explanation of economic developments, expectations, and associated phenomena. It relies on objective data analysis, relevant facts, and associated figures. It attempts to establish any cause-and-effect relationships or behavioral associations which can help ascertain and test the development of economic theories. Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. These statements can be measured against tangible evidence or historical instances. There are no instances of approval-disapproval in positive economics.
    A typical example of positive economics statement is thus: “Government-provided healthcare increases public expenditures.” This statement is fact-based and has no value judgment attached to it. Its validity can be proven (or disproven) by studying healthcare spending where governments provide healthcare.

    Normative Economics

    Normative economics focuses on value-based judgments aimed at improving economic development, investment projects, and the distribution of wealth. Its goal is to summarize the desirability (or lack thereof) of various economic developments, situations, and programs by asking what should happen or what ought to be. Normative economics is subjective and value-based, originating from personal perspectives or opinions involved in the decision-making process. The statements of this type of economics are rigid and prescriptive in nature. They often sound political, which is why this economic branch is also called “what should be” or “what ought to be” economics.
    An example of a normative economic statement is: “The government should provide basic healthcare to all citizens.” As you can deduce from this statement, it is value-based, rooted in personal perspective, and satisfies the requirement of what “should” be. One of the most famous normative economists is Amartya Sen, a Nobel prize winner who devoted his career to studying development economics.
    A clear understanding of the difference between positive and normative economics may lead to better policy-making if policies are made based on a balanced mix of facts (positive economics) and opinions (normative economics). Nonetheless, numerous policies on issues ranging from international trade to welfare are at least partially based on normative economics.
    Though normative statements are generalized and subjective in nature, they act as the necessary channels for out-of-the-box thinking. Such opinions can form the foundation for any necessary changes that may have the potential to completely transform a particular project. But normative economics cannot be the sole basis for decision-making on key economic fronts. Positive economics fills in for the objective angle that focuses on facts and cause-and-effect. Coupled with positive economics, normative economics may be useful in establishing, generating, and fulfilling new ideas and theories for different economic goals and perspectives.
    Hence; Positive economics describes and explains various economic phenomena, while normative economics focuses on the value of economic fairness or what the economy should be.
    Highlighting the differences thus:,
    To put it simply, positive economics is called the “what is” branch of economics. Normative economics, on the other hand, is considered the branch of economics that tries to determine the desirability of different economic programs and conditions by asking what “should” or what “ought” to be.
    Positive economics describes and explains various economic phenomena, whereas, Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments.

    2 CETERIS PARIBUS is a Latin phrase that generally means “all other things being equal.” Ceteris paribus simply put means; all external factors acting on a variable subject are assumed to remain unchanged/constant while testing its relationship with other variable subjects. Economists use it for confirmation of a theory in economics. It measures the cause and effect in a relationship between two separate economic variables using probability and tendency knowledge.
    Ceteris paribus is considered natural law. It is not disposed by any government; instead, it is thought to naturally occur based on how certain variables interact. For example, if the United States drilled for more oil domestically, there would be more supply for gasoline and the price of gas would drop. There is no law that defines that this would happen; it’s simply assumed as the outcome based on how situations naturally flow together.
    Often, it is to isolate only one variable, economists cite ceteris paribus to clarify that their assumptions on a given outcome are only valid if all other variables are remaining the same. Though ceteris paribus is truly unlikely due to the complexity of macroeconomic factors, it may still be useful in testing variables and determining what causes outcomes.
    Ceteris Paribus or Caeteris Paribus helps in understanding the cause-and-effect relationship between two variables. In economics discussions, Juan de Medina and Luis de Molina first used it in the sixteenth century. It is the most widely used and dominant concept in economics and finance for analysis of economic theory. It cannot predict anything with certainty or absoluteness. However, it provides a base for the possible way to determine causal relations.
    Simply put, it assumes that two variables have a cause-and-effect relationship only when the external factors, which might affect the variables, remain the same. In economics, all the variables are constantly changing; this concept helps to understand any economic or financial mechanisms. Economists and financial analysts find it difficult to factor in all the dynamic variables together simultaneously and then study the variables’ relationship. Studying such relationships leads to chaos and complexity in the calculations. Moreover, this concept points out some important factors. Example includes price, that directly impacts the connection between two variables like supply and demand.
    A typical example Can be deducted thus; that if the price of beef increases—ceteris paribus—the quantity of beef demanded by buyers will decrease.
    if the price of Coca-Cola falls, ceteris paribus, its demand will increase.

  158. Avatar NAME:Anagor Chiamaka Getrude .DEPARTMENT-palg.FACULTY-social sciences.REG NO:2021/242152 says:

    Answer to no 1
    1) positive economics is a stream of economics that focuses on the description, quantification and explanation of economic development,expectation and associated phenomena WHILE Normative economics focuses on value based judgement aimed at improving economic development , investment,projects and the distribution Of wealth.

    2) positive economics is objective and fact based where the statements are precise,descriptive and clearly measurable whereas the normative economics is subjective and value based originating from personal perspective or opinions involved in the decision making processes.

    3)The statements of positive economics can be scientifically tested and it’s validity proved or disapproved whereas normative economics analyse and examine methodically and in detail typically inorder to explain and interprete it.

    4) positive economics clearly define economic issues whereas normative economics provides remedies to economic issues on the basis of value judgement.

    Answer to no 2
    The concept of ceterius paribus according to economics is a broad term that defines that variables are changing or remaining the same on a given situation often to isolate only one variable,economists cite ceterius paribus to clarify that their assumptions on a given outcome are only valid if all other variables are remaining the same.
    PRACTICAL EXAMPLES
    1)if the price of milk falls ,ceterius paribus the demand for milk will rise
    2)if the United States drilled for oil off its own shores,ceterius paribus the price of gasoline would drop.
    3)if government prints more money,ceterius paribus interest rates will go up-this means that a higher supply of money will lead to inflation which increases interest rates
    4)if the minimum wage increases,ceteris paribus unemployment rates will rise-he assumption here is that employers who pay their workers higher wages can’t afford to hire more employees.