similarities and differences between conventional and islamic marketplace Essay

similarities and differences between typical and islamic economic system

Ecn 401 (MICRO ECONOMICS). THE NATURE OF ECONOMICS

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ADVANTAGES. Economic h is the analyze of man allocates his limited solutions among different alternatives found in other to satisfy his desires or desires. Economics is a social science that research individual economical behaviour, financial phenomena as well as how person agents just like consumer organization and government agencies make advantage choice that allocate limited resources between competing users. Man desire a lot of issues goods and services although resources are much less than successful to satisfy all his desires. These assets can be classified into two ie Economic resources such as land, time and capital and totally free resources including air. The free methods command simply no price and therefore are readily available whilst economic methods are comparatively scarce consequently economics comes into play in order for the economic unit to set aside these methods in order worth addressing to satisfy his want. ECONOMICS IS BOTH A POSITIVE AND A NORMATIVE SCIENCE Economics is both normative and positive technology, it is the analyze of facts as well as suitable theories and principles discussed as follows: A) POSITIVE ECONOMICS: Positive economics is a branch of economics that focuses on information and description of tendency as well as their particular casual romance. It concentrates primaryly in facts, and cause and effect behavioural relationship which includes developing and testing financial theories. Like a science, positive economics worth judgments such as positive economic theory would describe how money supply growth impacts inflation nonetheless it does not offer any guidance on what plan should be implemented. Economics like a positive science is the analyze of specifics or flings in reality or perhaps existing. B) NORMATIVE ECONOMICS: Normative economics is a subset of economics that expresses values or normative judgement about economic fairness. An example of ordre economic declaration...