Question

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?

2. Does your textbook present only positive economics and avoid and normative economics? If not, give some examples of normative issues covered in your textbook.
3. What did Adam Smith believe serves to curb self-interest in an economy?
4. What does it mean to seek the kingdom of God in a democratic capitalist economy? How can it be done?

Answer 1

1.

I believe it can be quite difficult to distinguish between self-interest and selfishness. In my opinion, selfishness is choosing your own desires over those of others, and when you do so, you hurt other people. In my opinion, self-interest entails protecting your interests while avoiding harming others. As acceptable for society, this distinction can be crucial in the competitive market economy. One reason why I believe it's crucial to understand when self-interest is being served is when one is merely chasing personal gain at the expense of others. To succeed in the cutthroat market economy and in society, you must have some self-interest.

2.

Normative economics may be helpful for producing fresh ideas from a variety of angles, but it cannot be the sole foundation for judgments on significant economic issues since it lacks an objective viewpoint that lays an emphasis on facts, causes, and effects. Normative statements—i.e., statements about what one thinks ought to be—are founded on "beliefs or ethics. Contrarily, even though they may not be accurate, positive economics can still be evaluated.