Discuss the Difference Between Formal and Substantive Theory in Terms

question 15

Essay

Discuss the difference between formal and substantive theory in terms of focus. What are the strengths and weaknesses of each theoretical focus? Is there any relationship between the research audience basic vs. applied) and research focus formal vs. substantive theory)?

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Definitions:

Normative Economics

A branch of economics that expresses value judgments about economic fairness or what the economy ought to be like.

Positive Economics

The branch of economics that concerns the description and explanation of economic phenomena.

Consequences

The outcomes or effects that stem from a particular action or decision, which can be intended or unintended and positive or negative.

Stability

The condition of an economy characterized by constant or predictable levels of growth, inflation, and employment.