Obama = government spending to decrease unemployment, rejected the view that the government has no role; Burr says government spending money does not work!

Labor theory of value; but value of good also affected by utility!

Keynesian = need government spending to stabilize economy and spend out of recession; Monetarist = spending won't work and simply leads to inflation

Consumers' satisfaction affected by psychological biases (e.g. prices of wines)

supported the laissez faire approach and believed that ‘supply creates its own demand’

Intervention (e.g. intervene to stabilize economy), choice (helping the economy heres means giving up the choice to spend elsewhere), equity

Scientific methodology to build knowledge (scientific) + deals with human behavior (social)

profit oriented = maximize profits & minimize costs + competition adds to more efficient allocation of resources

The opportunity cost of funding a new product may be to expand into a new geographical location, assuming it's the best choice forgone.

They arise due to the need to make choices as there are scarce resources.

What to produce, how to produce, for whom to produce.

Positive: raising income taxes decreases consumption, normative: the government should raise income taxes to increase its budget.