1. What is the difference between self-interest and selfishness? Why is this distinction important when considering the competitive market economy as appropriate for a society?
Self-interest and selfishness are two terms that are talked about in Stapleford’s book BULLS, BEARS, AND GOLDEN CALVES. Frist we must define these two terms to help us understand the difference between them. Self-interest is when someone is trying to protect their interest, buy they also take into account how it may affect others. Now, selfishness is when one makes decisions based on self with no regard to others. Now that we have defined the two terms we can use this to consider the competitive market as it is appropriate for society. If someone is making decisions in a market economy based on self-interest, they are looking out for themselves, but they also are looking at how those decisions may affect the customer. These are the type of people you can trust and want to invest, time and money into. If someone is making decisions out of selfishness, they are really looking out for themselves only. It’s this kind of decision making we cannot trust, since they look out for themselves only they would have no problem with backing out, leaving customer.
2. Does your textbook present only positive economics and avoid any normative economics? If not, give some examples of normative issues covered in your textbook.
Positive economics is objective and fact based, and normative economics is subjective and value based. There is no way that our textbook can be just positive economics. It even states it in
Roger Miller’s comment: “…the very choice of which topics to include in an introductory textbook involves normative economics. There is not a value-free, or objective, way to decide which topics to use in a textbook” Just by choose the certain subjects to but in our textbook make it unable to be just positive.
3. What did Adam Smith believe serves to curb