Final Exam - NUR2063 / NUR2063 (Latest MAY 2023) : Essentials of Pathophysiology - Rasmussen

Final Exam - NUR2063 / NUR2063 (Latest MAY 2023) : Essentials of Pathophysiology - Rasmussen Economics - Lecture notes 16 Economics (University of Nairobi) lOMoAR cPSD| ECONOMICS PART 1 CPA SECTION 2 CCP SECTION 2 CIFA SECTION 2 CS SECTION 2 STUDY TEXT GENERAL OBJECTIVES Page 2 ECONOMICS lOMoAR cPSD| This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to apply the fundamental principles of economics in decision making 4.0 LEARNING OUTCOMES A candidate who passes this paper should be able to: • Apply basic mathematical and graphical techniques to analyse economic relationships and interpret the results • Apply the knowledge of economics in decision making • Analyse economic problems and suggest possible policy related recommendations • Apply knowledge of economics in international trade and finance • Apply economic principles in the development and implementation of policies in agriculture and industry Demonstrate an understanding of emerging economic issues. CONTENT 4.1 Microeconomics 4.1.1 Introduction to economics - Definition of economics - Micro and macro economics - The methodology of economics and its basic concepts - Economic descriptions and analysis - Scarcity, choice, opportunity cost and production possibility frontiers and curves - Economic systems: free economy, planned economy and mixed economy - Specialisation and exchange 4.1.2 Demand, supply and determination of equilibrium 4.1.2.1 Demand analysis - Definition - Individual demand versus market demand - Factors influencing demand - Exceptional demand curves - Types of demand - Movement along and shifts of demand curves - Elasticity of demand - ECONOMICS lOMoAR cPSD| - Types of elasticity: price, income and cross elasticity - Measurement of elasticity; point and arc elasticity - Factors influencing elasticity of demand Application of elasticity of demand in management and economic policy decision making 4.1.2.2 Supply analysis - Definition - Individual versus market supply - Factors influencing supply - Movements along and shifts of supply curves - Definition of elasticity of supply - Price elasticity of supply - Factors influencing elasticity of supply - Application of elasticity of supply in management and economic policy decision making 4.1.2.3 Determination of equilibrium - Interaction of supply and demand, equilibrium price and quantity - Mathematical approach to equilibrium analysis - Stable versus unstable equilibrium - Effects of shifts in demand and supply on market equilibrium - Price controls - Reasons for price fluctuations in agriculture 4.1.3 The theory of consumer behaviour - Approaches to the theory of the consumer- cardinal versus ordinal approach - Utility analysis, marginal utility (MU), law of diminishing marginal utility (DMU) - Limitations of cardinal approach - Indifference curve analysis - Budget line - Consumer equilibrium; effects of changes in prices and incomes on consumer equilibrium - Derivation of a demand curve - Applications of indifference curve analysis: substitution effect and income effect for a normal good, inferior good and a giffen good; derivation of the Engels curve - Consumer surplus 4.1.4 The theory of a firm 4.1.4.1 The theory of production - Factors of production Page 4 ECONOMICS lOMoAR cPSD| - Mobility of factors of production - Production function analysis - Short run analysis - Total product, average and marginal products - Stages in production and the law of variable proportions/ the law of diminishing returns - Long run analysis - Isoquant and isocost lines - The concept of producer equilibrium and firm's expansion curve - Law of returns to scale - - ECONOMICS lOMoAR cPSD| Demand and supply of factors of production Wage determination theories - Trade unions: functions and challenges - Producer surplus/economic rent 4.1.4.2 The theory of costs - Short run costs analysis and size of the firm's total cost, fixed cost, average cost, variable costs and marginal cost - Long run costs analysis - Optimal size of a firm - Economies and diseconomies of scale 4.1.5 Market structures - Definition of a market - Necessary and sufficient conditions for profit maximisation - Mathematical approach to profit maximisation - Output, prices and efficiency of: perfect competition, monopoly, monopolistic competition, oligopolistic competition