Economics (EC 1223) - Grade 12
|Unit 1||Introduction||05||Read more|
|Unit 2||Consumer’s Equilibrium and Demand||10||Read more|
|Unit 3||Producer’s behavior and Supply||10||Read more|
|Unit 4||Forms of Market and Price Determination||10||Read more|
|Unit 5||Simple Applications of Demand and Supply||20||Read more|
|Unit 6||National Income and Related Aggregates||10||Read more|
|Unit 7||Money and Banking||05||Read more|
|Unit 8||Determination of Income and Employment||10||Read more|
|Unit 9||Government Budget and the Economy||10||Read more|
|Unit 10||Role of Government||10||Read more|
- Some basic tools in the study of Economics: Equation of a line, slope of a line, slope of a curve.
- Meaning of microeconomics and macroeconomics. What is an economy? Central problems of an economy: what how and for whom to produce; concepts of production possibility frontier and opportunity cost
- explain some basic tools-equation, slope, graph, etc. used to represent concepts and theories in mathematical and geometric forms.
- understand that study of economics is broadly categorized into microeconomics and macroeconomics and understand the difference between the two
- infer that fundamental cause of all economics problems is scarcity of resources, wants being unlimited a natural fact.
- infer that every country- big or small, rich or poor – faces certain economic problems of what, how and for whom to produce.
- explain the common problems through the mathematical tools.
Consumer's Equilibrium and Demand
- Consumer's equilibrium – meaning of utility, marginal utility, law of diminishing marginal utility, conditions of consumer's equilibrium using marginal utility analysis. Indifference curve analysis of consumer's equilibrium-the consumer's budget (budget set and budget line), preferences of the consumer(indifference curve, indifference map) and conditions of consumer's equilibrium
- Demand, market demand, determinants of demand, demand schedule, demand curve, movement along and shifts in the demand curve
- Price elasticity of demand - factors affecting price elasticity of demand; measurement of price elasticity of demand
- percentage-change method
- geometric method (linear demand curve); relationship between price elasticity of demand and total expenditure.
Producer's behavior and Supply
- Production function: Total Product, Average Product and Marginal Product. Returns to a Factor.
- Cost, Short run costs - total cost, total fixed cost, total variable cost; Average fixed cost, average variable cost and marginal cost-meaning and their relationship.
- Revenue-total, average and marginal revenue
- Producer's equilibrium-meaning and its conditions in terms of marginal revenue-marginal cost.
- Supply, market supply, determinants of supply, supply schedule, supply curve, movements along and shifts in supply curve, price elasticity of supply; measurement of price elasticity of supply
- percentage change method
- geometric method
Forms of Market and Price Determination
- Perfect competition - Features;After Determination of market equilibrium and effects of shifts in demand and supply.
- Other Market Forms -monopoly, monopolistic competition, oligopoly - their meaning and features.
- infer that microeconomics conceives of four types of market situations: perfect competition, monopoly, monopolistic competition and oligopoly.
- explain meaning, features and its implication of a perfectly competitive market.
- explain how price is determined in a perfectly competitive market and represent the same graphically
- recognise the implications of shift in demand, or in supply, or in both simultaneously as such shifts affect price and output. Represent the same graphically
- identify features and their implication of monopoly, monopolistic competition and oligopoly markets
Simple Applications of Demand and Supply
- Applications of Demand and supply.
- explain the implication of maximum price ceiling by the government and represent the same on a graph.
- explain the implication of minimum price ceiling by the government and represent the same on a graph.
National Income and Related Aggregates
- Some basic concepts: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation.
- Circular flow of income; Methods of calculating National Income – Value Added or Product method, Expenditure method, Income method.
- Aggregates related to National Income: Gross National Product (GNP), Net National Product (NNP), Gross and Net Domestic Product (GDP and NDP) - at market price, at factor cost;
- National Disposable Income (gross and net), Private Income, Personal Income and Personal Disposable Income; Real and Nominal GDP. GDP and Welfare
Money and Banking
- Money-Its meaning and features Supply of money – Currency held by the public and netdemand deposits held by commercial banks. Money creation by the commercial banking system
- explain the difficulties of barter system of exchange of goods and services.
- also explain how introduction of money has removed these difficulties
- point out functions of money in this context.
- explain the concept of „money supply‟. Identify the components of money supply.
- understand how commercial banks create money
- Central bank and its functions
- differentiate between central bank and commercial banks
- explain the functions of a central bank.
Determination of Income and Employment
- Aggregate demand and its components.
- Propensity to consume and propensity to save(average and marginal)
- Short–run equilibrium output; investment multiplier and its mechanism.
- Meaning of full employment and involuntary unemployment.
- Problems of excess demand and deficient demand; measures to correct them -change in government spending, availability ofcredit
Government Budget and the Economy
- Government budget - meaning, objectives and components.
- explain briefly the structure of government budget.
- analyse the objectives the government budget exercise intends to achieve.
- Classification of receipts - revenue receipts and capital receipts; classification of expenditure – revenue expenditure and capitalexpenditure.
- Measures of government deficit -revenue deficit, fiscal deficit, primary deficit: their meaning.
- list different types of deficits in a government budget.
- explain the meaning of each type of deficit: revenue, fiscal and primary deficits
- understand what each type of deficit indicates.
Role of Government
- Fiscal Policy, Policies to check market failure.
- understand that government undertakes its economic activities through the budget making and that such an exercise is called fiscal policy.
- explain the tools of fiscal policy
- explain what role each tool plays
- define market failure
- explain the policies government adopts to check market failure.