Sunday, February 8, 2015

The theory of consumer behavior (15)

What really matter in the view of positive economics is:
ü “what is”
ü or “the matter of fact’
which is value free.
Thus, disregard any ethical or value loaded moral judgment of ‘what ought to be’.
An is-statement is simply one that is either materially true or false.
It asserts something about the state of the world, that is such and such and not otherwise and we can employ interpersonally testable methods to discover whether it is true or false
(Blaug, 1992, 113).
Shifted away from any ethical and moral judgments, positive economic principle develop and widely accepted in the western world especially through the concepts of rational economic man and laisez faire.

to be continued...

Source: Islamic Science University of Malaysia

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