Economics study notes

ECONOMICS
INTRODUCTION
This module unit is intended to equip the trainee with knowledge, skills and attitudes to
enable him/her apply the economic concepts in day to day life.
General objectives
At the end of this module unit, the trainee should be able to:
a) Recognize the role of economics in day to day life
b) Apply the concept of demand and supply in economics analysis
c) Demonstrate an understanding of price determination
d) Apply production theory concept in a financial institution
e) Demonstrate an understanding of market structures
f) Relate the concept of money and banking to banking and financial services business
environments
g) Demonstrate an understanding of public finance concept
h) Assess the relationship of population and unemployment in an economy
i) Cope with emerging issues and trends in economics.
Module Unit Summary and time allocation
Code Sub- Content Time (
module hours)
units
8.1.01 Introductio  Meaning of economics 6
n to  Scope of economics
Economics  Human wants
 Economic resources
 Concepts of scarcity and choice
 Economic systems
 Concept of demand 6
8.1.02 Demand  Factors affecting demand of a product
analysis  Demand curve derivation
 Shift and movement along a demand curve
 Definition of elasticity of demand
 Types of elasticity of demand


8.1.03 Supply  Concept of supply 6
analysis  Factors affecting supply of a product
 Supply curve derivation
 Shift and movement along the supply curve
 Elasticity of supply

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,  Types of elasticity of supply
8.1.04 Price  Definition of price 10
determinati  Determination of price
on  Equilibrium position in the market
8.1.05 Production  Production concept 10
theory  Purpose of production
 Factors of production and their rewards
 Levels of production
 Law of diminishing returns
8.1.06 Theory of  Distinction between firm and industry 12
firm  Costs of production
 Concepts of revenue
 Economies of scale and diseconomies of scale
 Factors affecting location of an industry
 Optimal size of a firm


8.1.07 Market  Definition of market 12
Structures  Types of market structures
 Needs for control of power in market
structures
 Ways of controlling powers in different
market structures
8.1.08 National  Definition of national income 12
income  Concepts of national income
 Circular flow of National income
 Methods of measuring national income
 Importance of national income
 Factors affecting national income
 Causes of income disparities
 National income equilibrium
8.1.09 Money and  Definition of money 8
banking  Characteristics of money
 Functions of money
 Demand and supply of money
 Meaning of banking
 Functions of commercial banks
 Functions of central bank
 Non- banking financial institutions

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,8.1.10 Public  Definition of public finance 8
finance  Principle of public finance
 Effects of government expenditure
 Source of government revenue
 Purpose of taxation
 Types of taxes
 Meaning of fiscal policy
 National budget
 Public debt/borrowing


8.1.11 Inflation  Definition of inflation
 Types of inflation
 Causes of inflation
 Effects of inflation
 Measures used to control inflation


8.1.12 Internation  Definition of international trade
al trade  Importance of international trade
 Advantages and disadvantages of
international trade
 Theories of comparative advantage and
absolute advantage
 Balance of trade
 Balance of payment
 Barriers to international trade
 Exchange rate systems
 Economic integration/regional groupings
 Functions of international monetary fund (
IMF) and World Bank
8.1.13 Population  Definition of population 10
and  Population growth
unemploy  Effects of population growth
ment  Meaning of unemployment
 Causes of unemployment
 Solution to unemployment
8.1.14 Economic  Meaning of economic growth and economic 4
growth and development
developme  Factors determining growth and

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, nt development
 Need for development

8.1.15 Emerging  Emerging economic trends and issues
trends and  Challenges posed by emerging economic
issues in trends and issues
Economics  Approaches to manage emerging economic
trends and issues


Total 130




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