Applied economics involves applying basic economic theories and econometrics to real-world situations to determine what outcomes are most likely. The document discusses positive economics, which objectively studies existing economic phenomena; normative economics, which considers what policies should aim to achieve; and applied economics, which examines the relationship between positive and normative economics through industry-specific research. Applied economics programs focus on concrete examples and specific conclusions to interpret real-world issues.

1. WHAT ISTHE DIFFERENCE BETWEEN
ECONOMICS AND APPLIED
ECONOMICS?
If you are applying to a postgraduate program in economics in the
United States, you'll have to choose between programs in
economics and programs in applied economics. It will be a tough
choice if you don't know the difference. In fact, there are three basic
categories of economics: positive, normative and applied.

2. Positive Economics
The study of criteria of what is. Positive economists research economic
phenomena that exist and create theories to explain why these
phenomena exist. It is a pure, abstract science and is not very popular with
contemporary economists, because economists are under pressure to
research things that have relevance to policy. All positive economic
statements must be demonstrable to be either true or false based upon
hard data culled from the real world. For example, a positive economist
might say predatory lending caused inflation in the housing market. This
would be a positive statement, because the economist could objectively
prove it to be either true or false. Positive economists avoid making value
judgments.

3. Normative Economics
The study of how things ought to be. Normative economists consider factors
such as the social and ethical implications of economic phenomena and make
arguments about the goals of public policies should be.You could say that
normative economics is subjective, because not everyone agrees on what is
economically fair and what the goals of public policy should be. For example,
a normative economist might say that mortgage lending should be federally
regulated so that banks do not make loans to people who won't be able to
repay them, drive the housing prices up, then cause these people to lose
those homes.This argument includes the value judgment that policy should
prevent people from losing their homes and inflating the housing market.

4. Applied Economics
The study of the relationship between positive and normative economics.
These days, if you attend a postgraduate program in applied economics, you
will probably be attending a program that focuses on a specific industry or
commodity. For example, you could attend an applied economics program in
food systems or trade. You might study economic theories, microeconomic
analysis of a specific industry or resource, commodities, public policy or
economics and law. While doing your research, you may substitute the
variables of positive economic theory with concrete examples to come up with
more specific conclusions in your work. You may also use positive economic
theories to interpret real-world phenomena.

5. What are some of the economic
theories?
• Keynesianism the economic theories of John
Maynard Keynes who advocated government
monetary and fiscal programs intended to
stimulate business activity and increase
employment.

6. What are some of the economic
theories?
• liberalism - an economic theory
advocating free competition and
a self-regulating market.

7. What are some of the economic
theories?
• monetarism an economic theory
holding that variations in
unemployment and the rate of inflation
are usually caused by changes in the
supply of money.

8. What are some of the economic
theories?
• Malthusian theory, Malthusianism
Malthus' theory that population increase
would outpace increases in the means of
subsistence

9. Business Project Plan
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10. Business Project Plan
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11. Business Project Plan
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12. Business Project Plan
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13. Business Project Plan
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15. Business Project Plan
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16. Business Project Plan
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17. Business Project Plan
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18. Business Project Plan
Presenter Name | Company Name

19. What is Applied Economics?
-Application of basic assumptions of economics to real-world situations.
-with an eye determining what can reasonably be expected to happen.
ISTHE APPLICATIONOF ECONOMICTHEORYAND
ECONOMETRICS IN SPECIFIC SETTINGS.

20. Project Description
Brief description of the project

21. Project Scope
 Describe the work to be accomplished
 What’s the purpose or business need for this project?
 Is there a relationship to other projects?
 Who are the stakeholders?
 What work is out of scope for this project?

22. Objectives
 Identify overall project objectives:
 Technical objectives
 Schedule objectives
 Cost objectives
 Special objectives
 Non-goals

23. Deliverables
 What products or services will your project deliver?
 Include client requirements

24. Success Factors
 Identify elements that are key to the success of the project, such as:
 Satisfied clients or stakeholders
 Met project objectives
 Completed within budget
 Delivered on time

25. ProjectTeam Roles and Responsibilities
[Full Name]
Project Manager
[Full Name]
Member Role
[Full Name]
Member Role
[Full Name]
Member Role
[Full Name]
Member Role
[Full Name]
Administrative
Assistant

26. Implementation
 Tasks/activities
 Procedures
 Tools/technology
 Project change control process
DYA: define your acronyms!

27. Resources
People
Resource 1
Resource 2
Resource 3
Resource 4
Notes
Equipment
Resource 1
Resource 2
Resource 3
Resource 4
Notes
Locations
Resource 1
Resource 2
Resource 3
Resource 4
Notes
Outside
Services
Resource 1
Resource 2
Resource 3
Resource 4
Notes
Manufacturing
Resource 1
Resource 2
Resource 3
Resource 4
Notes
Sales
Resource 1
Resource 2
Resource 3
Resource 4
Notes

28. Cost Analysis
Annual Cost, Parts and materials,
1,325,000
Annual Cost, Manufacturing
equipment, 900,500
Annual Cost, Salaries, 575,000
Annual Cost, Maintenance,
395,000
Annual Cost, Office lease, 295,000Annual Cost, Warehouse lease,
250,000
Annual Cost, Insurance, 180,000Annual Cost, Benefits and
pensions, 130,000Annual Cost, Vehicles, 125,000
Annual Cost, Research, 75,000
ChartTitle

29. Project Schedule and Milestones
Milestone 1
• Date
Milestone 2
• Date
Milestone 3
• Date
Milestone 4
• Date

30. Risk Management Plan
Risk Probability Impact Owner Mitigation Plan
Budget cuts may
reduce staff, affecting
project scope and
schedule
Medium High
Project
Manager
See appendix for a phased
implementation plan

31. Quality Management and Performance Measures
 Define quality management plans
 How will you monitor and control costs?
 How will you monitor and control schedule?

32. Appendix
 Reference supplementary materials
and resources