Explain the differences between positive economic analysis and ...

[mikaylakyoung]

Explain the differences between positive economic analysis and normative economic analysis. Which of these approaches do economists generally adhere to and why?
 
  What will be an ideal response?

Question 2

Explain what it means to have a mixed-strategy equilibrium in a zero-sum game. What happens if a player deviates from this mixed-strategy equilibrium?
 
  What will be an ideal response?

[ricroger]

Answer to Question 1

Positive economic analysis is an objective analysis of what is in the economy. Normative economic analysis is a subjective analysis of what should be in the economy. Economists generally stick to positive economic analysis in an attempt to remain objective and avoid making judgments about fairness.

Answer to Question 2

At a mixed-strategy equilibrium in a zero-sum game, both players are playing their ideal mixtures, given the ideal mixture of their opponent. If a player deviates from this equilibrium (and therefore from his or her ideal mixture), the player's payoff will fall.

[mikaylakyoung]

TYSM

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