Risk-averse investors choose to preserve capital rather than receive a greater-than-average return. Investing is about price volatility. Volatilities can either make you wealthy or eat away at your savings. A conservative investment will grow steadily and slowly over a period of time. Low-risk investment…
Normative economics, positive economics- an overview
Economists prefer to differentiate normative economics (“what should be”) from positive economics (“what actually is”). However, much normative analysis (value judgments) are subject to change if facts or knowledge changes. Amartya Sen, a welfare economist, distinguishes between basic (normative) judgements that do not depend…