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Glite Dictionary
normative economics

normative economics

8.0
Expressing opinions about how the economy should be and what governments should do
  • noun
  • /ˈnɔːrmətɪv ɪˌkɒnəmɪks/
  • Specialized
translation icon : economía normativa
  • Positive economics is the study of the way things are, while normative economics is the study of the way things should be.

Positive economics is the study of the way things are, while normative economics is the study of the way things should be.

Examples

  • "Normative economics and the art of economics," on the other hand, cannot be independent of positive economics.

    Death Wish (2018)

  • Understanding normative economics helps policymakers decide what the economy should prioritize.

  • Economists often debate the implications of normative economics in shaping public policy.

  • The principles of normative economics guide discussions about income distribution and welfare.

Antonyms

positive economics
  • Specialized
1 6.3

Part of economics that describes, explains, and predicts how the economy works without giving opinions

How Prescriptive

advocacy
145 4.4
normative economics
  • Specialized
8.0
positive economics
  • Specialized
1 6.3

Surface Forms

normative economics singular
normative economics plural

Morphology

normative + economics

The meaning is directly compositional: 'normative' (relating to norms or value judgments) modifies 'economics' (the study of the economy), so a learner can infer it refers to economics concerned with what the economy should be or recommended policies. This construction is transparent and parallels formulations in many languages, so a B1 learner who knows both constituents would readily grasp the intended meaning.

Etymology

Normative economics comes from the word norm, meaning a rule or standard, plus economics, the study of money and resources. It is the part of economics that gives opinions about what 'should' happen, so it tells us what policies people think are right or wrong.