经济学EconomicsforToday3E1.pptVIP

* Positive economics Positive economics is an analysis limited to statements that are verifiable. Positive statements are testable ? they can be proven true or false. Examples ‘Airbags save lives.’ ‘Smoking is harmful to your health.’ * Normative economics Normative economics is an analysis based on value judgements. Normative statements cannot be proven by facts to be true or false. They express opinions – good, bad, ought to, should. Examples: ‘Every teenager who wants a job should have one.’ ‘The government should allocate more money to education.’ Appendix to Chapter 1 Applying graphs to economics * Key concepts Why use graphs in economics? What is a direct relationship? What is an inverse relationship? What is an independent relationship between two variables? How do we measure the slope of a line? How do graphs show three-variable relationships? * Graphs in economics Graphs are one of the simplest ways to present, aid and help us to understand relationships and to ‘see’ economic concepts at work. Graphs help economists to understand the relationships that exist between variables. You should learn to draw, describe and interpret them. * A direct relationship A direct relationship is a positive association between two variables. When one variable increases, the other also increases. When one variable decreases, the other also decreases. Note the line on the next slide has a positive slope. * A direct relationship * An inverse relationship An inverse relationship is a negative association between two variables. When one variable increases, the other decreases. When one variable decreases, the other increases. Note the line on the next slide has a negative slope. * An inverse relationship * An independent relationship An independent relationship is a zero association between two variables. When one variable changes, the other remains unchanged. * An independent relationship * The slope of a straight line The ratio of change in the variable on the vertical axis (t