... with objective explanation–e.g. if a tax is imposed on a good its price will tend to rise■Normative economics offers prescriptions based on value judgements–e.g. a tax SHOULD be imposed ... barrelTripled in 197 3-7 4, and doubled again in 197 9-8 0 … and affected people all over the world. 1.4An increase in the price of oil affects■What to produce–less oil-intensive products■How ... Chapter 1Economics and the EconomyDavid Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000Power Point presentation by Peter Smith 1.10Market...