Final answer:
The orthodox economy principle emphasizes free-market principles and minimal government intervention, while the heterodox economy principle challenges these assumptions and advocates for government intervention to address market failures.
Step-by-step explanation:
The orthodox economy principle and heterodox economy principle are two different approaches to understanding and analyzing economic systems.
In orthodox economics, the focus is on free-market principles, rational decision-making by individuals and firms, and the efficient allocation of resources through price mechanisms. This approach assumes that markets are generally self-regulating and that government intervention should be minimal.
In contrast, heterodox economics challenges the assumptions of orthodox economics and emphasizes the role of institutions, social factors, and power dynamics in shaping economic outcomes. Heterodox economists argue that markets are not always efficient or fair and that government intervention is necessary to address market failures and promote social welfare.