ECONOMICS
WAEC SYLLABUS ON ECONOMICS
PREAMBLE:
This syllabus is designed to assess candidates’ knowledge of basic economic principlesneeded for rational decision making relating to individuals, businesses, government andsociety. Such knowledge is necessary in enhancing their appreciation of governmenteconomic policies, problems of implementation and how they impact on the economy. Thiswill help candidates to understand that economics is not only an academic field of study butalso a practical subject.
OBJECTIVES:
The syllabus will test candidates’:1. knowledge of the basic economic principles, concepts, and the tools for economicanalysis;
2. understanding of the structure and functioning of economic institutions – commercial,agricultural, industrial and financial institutions;3. understanding of the basis for rational economic decisions;
4. ability to explain the basis and structure of the West African economy, including theroles of agriculture, industry and mining and their contributions to the nationalincome;
5. ability to follow the role and status of the West African countries in internationaleconomic relationships;
6. ability to appreciate the problems West African countries encounter in their economicdevelopment.
EXAMINATION SCHEME:
There will be two papers - Paper 1 and Paper 2; both of which will be in a composite paper tobe taken at one sitting.PAPER 1:
will consist of fifty multiple choice questions to be taken in 1 hour for 50marks.PAPER 2:
will consist of eight essay- type questions in two sections: Sections A and B.Section A will consist of two data response questions. Candidates will berequired to answer four questions in all, choosing one question from SectionA and any three questions from Section B. The paper shall last 2 hours for 80marks.DETAILED SYLLABUS
1. DEFINITION AND SCOPE OF ECONOMICS
Scarcity and Choice, Scale of Preference, Opportunity Cost, Production PossibilityCurve.Economic activities – Production, Distribution and Consumption.
Classification of economic activities - Primary, Secondary and Tertiary and theirrelative contributions in terms of output/income, employment, savings, investmentand foreign exchange.
2. FACTORS OF PRODUCTION
Land, labour, capital and entrepreneurship- meaning, characteristics and importance.3. TYPES AND BASIC FEATURES OF ECONOMIC SYSTEMS
(a) Types – capitalism, socialism and mixed economy.(b) Basic features of each
(c) Advantages and disadvantages of each
(d) Economic problems of society and the approaches for solving them under eachof the systems.
4. BASIC TOOLS OF ECONOMIC ANALYSIS
Tables, graphs and charts.Some basic statistical measures and representations –arithmetic mean, median, mode and their simple applications.
5. DEMAND
Concept of demand and law of demand, the demand schedules and curve, reasons forexceptional demand curves, types of demand (derived, composite, joint andcompetitive);factors determining demand for goods and services – price of thecommodity, prices of other commodities, income, tastes, price expectation, etc.
Distinction between a shift of and movement along a demand curve; concept ofelasticity of demand.
Types of elasticity of demand and their measurement – price,income and cross elasticities of demand: importance of the concept of elasticity ofdemand to consumers, producers and government.
6. SUPPLY
Concept of supply and law of supply, supply schedules and curve, types of Supply –composite, complementary and competitive.Factors determining supply – inputprices, technology, prices of other commodities, climatic factors, etc.
Distinctionbetween the shift of and movement along the supply curve.
Concept and measurementof elasticity of supply and its importance to producers and government
7. THEORY OF CONSUMER BEHAVIOUR
The utility concepts- total utility, average utility, marginal utility and the calculationof utility schedules.The law of diminishing marginal utility, relationship betweentotal utility, average utility and marginal utility. The concept of equilibrium of aconsumer.
Determination of consumer equilibrium. The effects of changes in priceon consumer equilibrium. The relationship between marginal utility and the demandcurve.
8. THEORY OF PRICE DETERMINATION
The Concept of the market; interaction between demand and supply.Pricedetermination under free and regulated markets. Equilibrium price and quantity inproduct and factor markets.
The effects of changes in supply and demand onequilibrium prices and quantities. Introduction to algebraic determination ofequilibrium price and quantity.
Price controls: maximum and minimum priceregulations- meaning and their effects; rationing, black market (parallel market)
9. THEORY OF PRODUCTION
Production: division of labour and specialization:Scale of production (Internal andExternal economies), concept of total, average and marginal productivity and law ofvariable proportions.
10. THEORY OF COST AND REVENUE
(i) Cost concepts: total cost, average cost, marginal cost, variable cost, fixed cost;short run and long run costs.
(ii) Distinction between economist’s and accountant’s view of cost(opportunity cost and money cost).
(iii) Revenue concepts:
total, average and marginal revenue; Marginal revenueProduct.
11. MARKET STRUCTURES
Concept of a market, characteristics of various market structures, determination ofprice and output under different structures - perfect competition and imperfectcompetition (monopoly and monopolistic competition). Review of cost and revenueconcepts. Price discrimination.12. BUSINESS ORGANIZATIONS
Types and basic features of business enterprises – Sole Proprietorship; Partnership,Joint- Stock companies (Private and Public), Co-operatives; Statutory Corporation,Joint ventures. Sources of funds.General and basic problems of businessenterprises.
Privatization and Commercialization as solutions to problems ofpublic enterprises. Indigenization and nationalization policies.
13. DISTRIBUTIVE TRADE
Process of distribution, role of producers, role of wholesalers, retailers andco-operatives:the role of government agencies in product distribution and theproblems of distribution and their solutions.
14. POPULATION AND LABOUR MARKET
(a) Population - determination and implication of size and growth ofpopulation, Rural – urban migration, Malthusian theory of populationGeographical, age, sex and occupational distribution.Importance andproblems of census.
Population and economic development (under -population, optimum population and over- population).
(b) Labour Market
(i) Concept of labour force and human capital, efficiency and mobility oflabour, factors affecting the size of the labour force, particularly thepopulation characteristics (age, sex, occupation, education, etc.)
(ii) supply of and demand for labour: wage determination.
Concept ofunemployment and underemployment, Trade Unions, Employers’association and Government policies on labour and wages.
15. AGRICULTURE
Structure (e.g. food crops, export crops, livestock, fisheries):systems ofagriculture(peasant, commercial, co-operative and state farming); importance of agricultureto the national economy: marketing of agricultural products (commodity boards).
Agricultural policies (minimum agricultural prices) problems of agriculture andremedies.
16. INDUSTRIALIZATION
Meaning and types of industry.Definition of industrial concepts: plant, firm,industry and industrial estates.
Location of industry, localization, role ofindustrialization in economic development.
Strategies of industrialization.
Problems of industrialization.
The link between agricultural and industrialdevelopment.
17. NATIONAL INCOME
Meaning of major national income concepts e.g. Gross Domestic Product, GrossNational Product.Net National Product, etc. Different ways of measuringnational income and their problems.
Uses and limitations of national incomedata; trends and structure of national income.
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18. MONEY AND INFLATION
(a) Money – definition and historical development-barter and its problems, types,characteristics functions. Supply of and demand for money, value of moneyand the price level.(b) Inflation: meaning types, causes, effects and control.
19. FINANCIAL INSTITUTIONS
Types (traditional, Central Bank, Commercial Bank, Development Bank,Merchant Bank, and Insurance Companies, Building Societies) :developmentand functions of financial institutions.
Money and capital markets; meaning,types and functions
20. PUBLIC FINANCE
Fiscal policy and objectives of public finance: Sources of government revenue.Taxation -types(direct and indirect),objectives, merits, demerits and incidence;
Principles/canons of taxation;
Rates of taxation(proportional, progressive andregressive) direct and indirect taxation: incidence and effects of taxes, composition/structure of public expenditure (recurrent and capital expenditure):
effects ofpublic expenditure. Government budget and the national debt.
21. ECONOMIC DEVELOPMENT AND PLANNING
Meaning of economic development, distinction between economic growth anddevelopment, characteristics and problems of developing countries, elements ofdevelopment planning (objectives of planning, and problems of planning).Typesof plans (short term, medium term, perspective or long term, rolling plan etc.).
22. INTERNATIONAL TRADE AND BALANCE OF PAYMENTS
(a) International Trade:differences between domestic and international trade, thebasis of international trade, absolute and comparative cost advantage, terms oftrade (definition and measurement) commercial policy (objectives) andinstruments – tariffs (types) and direct control.
Trend and structure of WestAfrican countries’ external trade.
(b) Balance of Payments: role of money in international transactions, meaningand components of balance of payments, balance of payments disequilibrium,balance of payments adjustments (exchange rate policy exchange control,monetary and fiscal policies) and financing (the use of reserves andinternational borrowing).
23. ECONOMIC INTEGRATION
Economic Integration (objectives, levels of and features).Development andproblems of economic integration in West Africa- ECOWAS
24. INTERNATIONAL ECONOMIC ORGANIZATIONS
Development and role of:- Organization of Petroleum Exporting Countries (OPEC)
- Economic Commission for Africa (ECA)
- International Monetary Fund (IMF)
- International Bank for Reconstruction and Development (IBRD)
- African Development Bank (AfDB)
- United Nations Conference on Trade and Development (UNCTAD)etc. relevance of such organizations to West African Countries.