RMET6053 Research Methods

Motivating Question

• How is every household a firm?

• The main reason is because of amount of production at home.

• The production of children.

• The production of health.

• The production of housing services.

Positive analysis

• The U.S. automakers learned that a household is a firm from the Japanese automakers.

• They learned this because of the activities that are involved with a household.

• In a household there is the investment of time.

• Every person in the house works towards meeting a certain goal(Reed, 2009).

• The aspect of delivering the goal through processes can be associated with value addition.

• The setbacks at the household can be associated with losses in a firm.

Normative analysis

• The U.S. automakers learned that a house can be compared with a firm.

• The contribution of people in a home can almost compare to the contribution of employees in a company.

• An essential amount of time is dedicated to home activities.

• The members of a house can work hard when they want to meet a certain goal.

• When they work hard, they are likely to meet the goal.

• Setbacks in the household come represent failures in the firm.

Textbook Application

• Positive economics state facts.

• The points outlined can be measured.

• Positive analysis has no biases.

• The points stated can be substantiated without favoring any side.

• There is evidence for every point that is passed across.
• The points are used to help solve a specific situation.
• Normative analysis does not concentrate on facts (Reed, 2009).

• Subjectivity is evident in normative analysis.

• Normative analysis looks at the judgment.

• Biases can be evident in normative analysis.

• The points outlined cannot be substantiated.

• At time the points can be assumptions.

Table

Conclusion

• How is household a firm?

• The question has been answered from normative and positive perspective.

• In positive perspective, the facts were outlined.

• The points that were provided were in line with real life situations (Páez, Scott, & Morency, 2012).

• The activities of the home and those of the firm were compared.

• Therefore, it is evident that positive analysis looks into ways of providing nothing less than facts.

• How is household a firm?

• Normative analysis has been used to answer the question as well.

• Looking at the normative analysis, there is one thing which is evident and that is lack of clarity.

• The answers in normative are more of opinions than facts.

• The answers given from the normative perspective cannot be substantiated.

• The normative analysis has made judgment rather than outline the facts.

References

• Páez, A., Scott, D. M., & Morency, C. (2012). Measuring accessibility: positive and normative implementations of various accessibility indicators. Journal of Transport Geography, 25, 141-153.

• Reed, D. (2009). What do corporations have to do with fair trade? Positive and normative analysis from a value chain perspective. Journal of Business Ethics, 86(1), 3-26.