1.0 INTRODUCTION TO THE COURSE ........................................................... Page 1
• 1.1 Definition and Philosophy of Economics
• 1.2 The Economic Problem: Scarcity, Choice, and Opportunity Cost
• 1.3 Microeconomics vs. Macroeconomics
2.0 THE PRODUCTION POSSIBILITY FRONTIER (PPF) ................................... Page 3
• 2.1 Assumptions of the PPF
• 2.2 Efficiency, Underutilization, and Growth
• 2.3 Practical Applications in Project Planning
3.0 MARKET FORCES: DEMAND AND SUPPLY .............................................. Page 5
• 3.1 The Law of Demand and Determinants
• 3.2 The Law of Supply and Determinants
• 3.3 Market Equilibrium: Price Determination
• 3.4 Shifts vs. Movements along the Curves
4.0 ELASTICITY CONCEPTS .......................................................................... Page 8
• 4.1 Price Elasticity of Demand (PED)
• 4.2 Income and Cross-Price Elasticity
, • 4.3 Importance of Elasticity for Project Managers
5.0 THEORY OF THE FIRM & MARKET STRUCTURES ................................... Page 10
• 5.1 Perfect Competition vs. Monopoly
• 5.2 Oligopoly and Monopolistic Competition
• 5.3 Kenyan Case Studies (KPLC, Safaricom, and Local Markets)
6.0 NATIONAL INCOME ACCOUNTING .......................................................... Page 12
• 6.1 Understanding GDP, GNP, and NNP
• 6.2 The Circular Flow of Income
7.0 REVISION & EXAM PREPARATION .......................................................... Page 13
• 7.1 Sample CAT Questions
• 7.2 Past Exam Discussion Topics
TOPIC 1: INTRODUCTION TO ECONOMICS
1.1 Philosophy and Origin
1.2 Economics is not just about money or math; it is the study of Human Behavior. The term comes
from the Greek word Oikonomia, which means “Household Management.” Just as a house manager
• 1.1 Definition and Philosophy of Economics
• 1.2 The Economic Problem: Scarcity, Choice, and Opportunity Cost
• 1.3 Microeconomics vs. Macroeconomics
2.0 THE PRODUCTION POSSIBILITY FRONTIER (PPF) ................................... Page 3
• 2.1 Assumptions of the PPF
• 2.2 Efficiency, Underutilization, and Growth
• 2.3 Practical Applications in Project Planning
3.0 MARKET FORCES: DEMAND AND SUPPLY .............................................. Page 5
• 3.1 The Law of Demand and Determinants
• 3.2 The Law of Supply and Determinants
• 3.3 Market Equilibrium: Price Determination
• 3.4 Shifts vs. Movements along the Curves
4.0 ELASTICITY CONCEPTS .......................................................................... Page 8
• 4.1 Price Elasticity of Demand (PED)
• 4.2 Income and Cross-Price Elasticity
, • 4.3 Importance of Elasticity for Project Managers
5.0 THEORY OF THE FIRM & MARKET STRUCTURES ................................... Page 10
• 5.1 Perfect Competition vs. Monopoly
• 5.2 Oligopoly and Monopolistic Competition
• 5.3 Kenyan Case Studies (KPLC, Safaricom, and Local Markets)
6.0 NATIONAL INCOME ACCOUNTING .......................................................... Page 12
• 6.1 Understanding GDP, GNP, and NNP
• 6.2 The Circular Flow of Income
7.0 REVISION & EXAM PREPARATION .......................................................... Page 13
• 7.1 Sample CAT Questions
• 7.2 Past Exam Discussion Topics
TOPIC 1: INTRODUCTION TO ECONOMICS
1.1 Philosophy and Origin
1.2 Economics is not just about money or math; it is the study of Human Behavior. The term comes
from the Greek word Oikonomia, which means “Household Management.” Just as a house manager
