Week 1 Notes.docx - August 29, 2019 ECON 201 Five Factors...

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August 29, 2019ECON 201Five Factors of Production1.Natural Resources (Land)2.Labor3.Capitala.Human Capitalb.Physical Capital4.EntrepreneurshipPositive vs. Normative Analysis-Most modern economics is based on positive analysis-Positive analysis can be factually verified-Positive Analysis:answers the questions “what is?” or “what will be?”-A second type of economics reasoning is normative in nature:-Normative AnalysisPositive Questions-if the government, increases the minimum wage how many workers will lose their job?-How does a college education affect a person’s productivity and earnings?Vs. Normative Question-should the government increase the minimum wage?-Should the government subsidize a college education?
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