ECO 122
COURSE CODE: ECO 122
COURSE TITLE: PRINCIPLES OF ECONOMICS II
CONTENTS
PAGE
Introduction…………………………………………………. iv
What you will Learn in this Course………………………… iv
Course Aims…………………………………………………. iv
Course Objectives……………………………………………. iv
Working through the Course………………………………... vi
Course Materials……………………………………………... vi
Study Units…………………………………………………... vi
Textbooks and References…………………………………… viii
Assignment File……………………………………………... x
Assessment…………………………………………………... xi
Tutor-Marked Assignments…………………………………. xi
Final Examination and Grading…………………………….. xii
Presentation Schedule……………………………………….. xii
Course Marking Scheme…………………………………….. xii
Course Overview…………………………………………….. xii
How to Get the Most from this Course……………………..
xiv
Tutors and Tutorials…………………………………………. xvi
Summary…………………………………………………….. xvii
137
, ECO 122 PRINCIPLES OF
ECONOMICS II
INTRODUCTION
ECO 122: Principle of Economics II is a three-credit unit course for
undergraduate students offering Economics. The course is made up of
21 units spread across 15 weeks. This course guide gives you an insight
to the course in an elementary way and how to study the economy in
larger dimension. It tells you about the course materials and how you
can work your way through these materials. It suggests some general
guidelines for the amount of time required of you on each unit in order
to achieve the course aims and objectives successfully.
WHAT YOU WILL LEARN IN THIS COURSE
This course is basically an introductory course on Macroeconomics.
The topics covered include the field of macroeconomics; national
income accounting; money and banking; components of gross domestic
product; aggregate demand and aggregate supply; government and the
economy; and open economy macroeconomics.
COURSE AIMS
The aim of this course is to give you in-depth understanding of
macroeconomics as a fundamental concept and practices of
macroeconomics. The overall aims of this course are to:
• familiarise you with national income accounting
• stimulate your knowledge of money and banking
138
,ECO 122
• Acquaint you with the components of gross domestic product
• expose you to differences between aggregate demand and
aggregate supply
• provide you with information about the government and the
economy
• introduce you to open economy in a macroeconomics context.
COURSE OBJECTIVES
To achieve the aims of this course, there are overall objectives which
the course is out to achieve though, there are set out objectives for each
unit. The unit objectives are included at the beginning of a unit; you
should read them before you start working through the unit. You may
want to refer to them during your study of the unit to check on your
progress. You should always look at the unit objectives after completing
a unit. This is to assist you in accomplishing the tasks entailed in this
course. In this way, you can be sure you have done what is required of
you by the unit. The objectives serve as study guides. At the end of the
course, you should be able to:
• define macroeconomics as a field of study and know the basic
macroeconomics concepts, as well as distinguish between
microeconomics and macroeconomics
• explain the transition from microeconomics to macroeconomics
analysis with various reasons macroeconomics analysis is
important
• describe how macroeconomics works in an economy
• explain the terms and measurement of national income as well as
the importance of national income and discuss the meaning of
consumption and its components
• explain the meaning of savings and its components and
investment and its components as well as the meaning of
economic welfare and national income
• discuss the relationship between economic welfare and national
income and to explain the meaning of money and the history of
money with its characteristics, functions and types of money as
well as the Keynesian motive of holding money
• trace the history of Nigeria banking system and the meaning of
commercial bank and its functions as well as the growth and
development of commercial banks in Nigeria
• explain merchant banking in Nigeria and to discuss the evolution
of central bank in Nigeria and the world at large. However, to
also state the functions of central bank as well as the relationship
between central bank and the government
• describe the concept of personal consumption expenditure and to
evaluate the concept of gross private domestic investment and
139
, ECO 122 PRINCIPLES OF
ECONOMICS II
net exports with the concept of government consumption and
gross investment
• describe the concept of gross private domestic investment and
the concept of net export and discuss how to measure gross
private domestic investment and net exports
• explain the meaning and concept of government consumption
and the national accounts measurement of government as well as
to define the meaning and concept of gross investment
• explain the meaning and nature of aggregate demand and its
curve and state the differences between short-run and long-run
aggregate demand and supply
• explain the meaning and nature of aggregate supply and its curve
and also to discuss the meaning aggregate supply-aggregate
demand model
• describe the analysis of shifts in aggregate demand-aggregate
supply in aggregate supply-aggregate demand model, to explain
the meaning of government spending and state reasons for
increase in government spending
• discuss the meaning of government spending and to give the
reasons for increase in government spending as well as to state
how government spending is financed
• explain the meaning of government revenue and to state different
types of taxation as a source of government revenue as well as to
explain the use of attributes or principles of taxation
• give the meaning of government budget and the reasons for
increase in government expenditure as well as to explain how
government expenditure is financed
• give reasons for international trade and also state the basis or
theory of international trade as well as the analysis of gain from
trade
• explain the basis of terms of trade and understand the reason for
international trade as well as the basis or theory of international
trade
• describe the gain from trade and also the terms of trade.
WORKING THROUGH THE COURSE
To successfully complete this course, you are required to read the study
units, referenced books and other materials on the course.
Each unit contains self-assessment exercises. At some points in the
course, you will be required to submit assignments for assessment
purposes. At the end of the course there is a final examination. This
course should take about 15 weeks to complete and some components
of the course are outlined under the course material subsection.
140
COURSE CODE: ECO 122
COURSE TITLE: PRINCIPLES OF ECONOMICS II
CONTENTS
PAGE
Introduction…………………………………………………. iv
What you will Learn in this Course………………………… iv
Course Aims…………………………………………………. iv
Course Objectives……………………………………………. iv
Working through the Course………………………………... vi
Course Materials……………………………………………... vi
Study Units…………………………………………………... vi
Textbooks and References…………………………………… viii
Assignment File……………………………………………... x
Assessment…………………………………………………... xi
Tutor-Marked Assignments…………………………………. xi
Final Examination and Grading…………………………….. xii
Presentation Schedule……………………………………….. xii
Course Marking Scheme…………………………………….. xii
Course Overview…………………………………………….. xii
How to Get the Most from this Course……………………..
xiv
Tutors and Tutorials…………………………………………. xvi
Summary…………………………………………………….. xvii
137
, ECO 122 PRINCIPLES OF
ECONOMICS II
INTRODUCTION
ECO 122: Principle of Economics II is a three-credit unit course for
undergraduate students offering Economics. The course is made up of
21 units spread across 15 weeks. This course guide gives you an insight
to the course in an elementary way and how to study the economy in
larger dimension. It tells you about the course materials and how you
can work your way through these materials. It suggests some general
guidelines for the amount of time required of you on each unit in order
to achieve the course aims and objectives successfully.
WHAT YOU WILL LEARN IN THIS COURSE
This course is basically an introductory course on Macroeconomics.
The topics covered include the field of macroeconomics; national
income accounting; money and banking; components of gross domestic
product; aggregate demand and aggregate supply; government and the
economy; and open economy macroeconomics.
COURSE AIMS
The aim of this course is to give you in-depth understanding of
macroeconomics as a fundamental concept and practices of
macroeconomics. The overall aims of this course are to:
• familiarise you with national income accounting
• stimulate your knowledge of money and banking
138
,ECO 122
• Acquaint you with the components of gross domestic product
• expose you to differences between aggregate demand and
aggregate supply
• provide you with information about the government and the
economy
• introduce you to open economy in a macroeconomics context.
COURSE OBJECTIVES
To achieve the aims of this course, there are overall objectives which
the course is out to achieve though, there are set out objectives for each
unit. The unit objectives are included at the beginning of a unit; you
should read them before you start working through the unit. You may
want to refer to them during your study of the unit to check on your
progress. You should always look at the unit objectives after completing
a unit. This is to assist you in accomplishing the tasks entailed in this
course. In this way, you can be sure you have done what is required of
you by the unit. The objectives serve as study guides. At the end of the
course, you should be able to:
• define macroeconomics as a field of study and know the basic
macroeconomics concepts, as well as distinguish between
microeconomics and macroeconomics
• explain the transition from microeconomics to macroeconomics
analysis with various reasons macroeconomics analysis is
important
• describe how macroeconomics works in an economy
• explain the terms and measurement of national income as well as
the importance of national income and discuss the meaning of
consumption and its components
• explain the meaning of savings and its components and
investment and its components as well as the meaning of
economic welfare and national income
• discuss the relationship between economic welfare and national
income and to explain the meaning of money and the history of
money with its characteristics, functions and types of money as
well as the Keynesian motive of holding money
• trace the history of Nigeria banking system and the meaning of
commercial bank and its functions as well as the growth and
development of commercial banks in Nigeria
• explain merchant banking in Nigeria and to discuss the evolution
of central bank in Nigeria and the world at large. However, to
also state the functions of central bank as well as the relationship
between central bank and the government
• describe the concept of personal consumption expenditure and to
evaluate the concept of gross private domestic investment and
139
, ECO 122 PRINCIPLES OF
ECONOMICS II
net exports with the concept of government consumption and
gross investment
• describe the concept of gross private domestic investment and
the concept of net export and discuss how to measure gross
private domestic investment and net exports
• explain the meaning and concept of government consumption
and the national accounts measurement of government as well as
to define the meaning and concept of gross investment
• explain the meaning and nature of aggregate demand and its
curve and state the differences between short-run and long-run
aggregate demand and supply
• explain the meaning and nature of aggregate supply and its curve
and also to discuss the meaning aggregate supply-aggregate
demand model
• describe the analysis of shifts in aggregate demand-aggregate
supply in aggregate supply-aggregate demand model, to explain
the meaning of government spending and state reasons for
increase in government spending
• discuss the meaning of government spending and to give the
reasons for increase in government spending as well as to state
how government spending is financed
• explain the meaning of government revenue and to state different
types of taxation as a source of government revenue as well as to
explain the use of attributes or principles of taxation
• give the meaning of government budget and the reasons for
increase in government expenditure as well as to explain how
government expenditure is financed
• give reasons for international trade and also state the basis or
theory of international trade as well as the analysis of gain from
trade
• explain the basis of terms of trade and understand the reason for
international trade as well as the basis or theory of international
trade
• describe the gain from trade and also the terms of trade.
WORKING THROUGH THE COURSE
To successfully complete this course, you are required to read the study
units, referenced books and other materials on the course.
Each unit contains self-assessment exercises. At some points in the
course, you will be required to submit assignments for assessment
purposes. At the end of the course there is a final examination. This
course should take about 15 weeks to complete and some components
of the course are outlined under the course material subsection.
140
