The Beechmont Crest Guide to Economics
Positive versus Normative Economics
Consider these two questions:
What affect does offshoring (moving manufacturing work to low-cost labor markets) have on U.S. wage levels?
Should offshoring be restricted by the government?
The first question falls within the domain of positive economics. This is simply an analysis of what is or what will happen.
The second question is one of normative economics. It asks: what should happen?
As you have probably already realized, the second question involves more than just the field of economics. The second question also involves value judgments and socio-political considerations.
Economics (as an academic subject) focuses on positive economics. (What is?) Of course, it is often possible to use positive economics analyses to decide what ought to be---but such questions exceed the realm of pure economics.