Chapter Two – Book Report/Review Example
Book Review Book Review Macroeconomics, 3rd Edition Chapter Two As I had indicated before, Macroeconomics, 3rd Edition is one of themost resourceful economic books I have ever read in my life as a student. It has lots of insightful information which educates me on various principles and aspects of economics. In this regard, I would like to point out that the most important lesson learnt in chapter two of this book is about positive and normative economic statements. In their explanations, Paul Krugman and Robin Wells clearly demonstrated, by the use of examples, the differences between these concepts.
Whereas positive economic statement are more objective and based on facts, normative statements are subjective and value-based. Moreover, the positive statements which essentially uses the words like ‘was,’ ‘is’ and ‘will’ can be tested, proved or disproved (Lipsey, R.G., 2007).. However, the normative statements can neither be tested, proved nor disapproved since they are not facts, but are opinions. Unlike the positive statements, they are simply grounded on words such as ‘would’ ‘should’ and ‘could.’
This kind of information is of great benefits to me. As an economic student, I am concerned about the welfare of the larger society. Therefore, these ideas will enable me to mindful of the decisions I make. Even if I start a business or become a leader, I will apply the concept of economic statements in the making of decisions. In order to ensure that I win the confidence of my people, I will have to base my decisions on facts, but not opinions. Meaning, the use of positive economic statement will help me to be more focused and objective in whatever I do.
Lipsey, R.G. (2007). An introduction to positive economics (Fourth Edition).
Weidenfeld & Nicolson. pp. 4–6.