5. The textbook model assumes that individuals have enough knowledge to follow the economic decision rule.

a. How did you decide what college you would attend?

b. Did you have enough knowledge to follow the economic decision rule?

c. For what type of decisions do you not use the economic decision rule?

d. What are the implications for economic analysis if most people don’t follow the economic decision rule in many aspects of their decisions? (Post-Keynesian)

6. Radical economists believe that all of economics, like all theorizing or storytelling, is value-laden. Theories and stories reflect the values of those who compose them and tell them. For instance, radicals offer a different analysis than most economists of how capitalism works and what ought to be done about its most plaguing problems:

inequality, periodic economic crises with large-scale unemployment, and the alienation of the workers.

a. What does the radical position imply about the distinction between positive economics and normative economics that the text makes?

b. Is economics value-laden or objective and is the distinction between positive and normative economics tenable or untenable? (Radical)