These simplified models help to see different aspects of economy such as trade. Instead of having dozens of different materials being traded if you only use two materials it is much easier to see such things as who is benefiting from the trade and why it is cheaper to trade for some materials than it is to manufacture them. As well as to see which nations can make materials for cheaper and would be more willing to trade for other materials that are more expensive for them to make.
A statement such as "Government should provide all citizens with healthcare" is a normative statement. Which means that it is an attempt to show how the world should be as compared to a positive statement which is a claim that attempts to describe the world as it is right now.
No comments:
Post a Comment