FIRST TERM E-LEARNING NOTE

SUBJECT: ECONOMICS

CLASS: SS1

SCHEME

WEEK  TOPIC

1. Meaning of Economics.
2. Economics as a Science, Arts or Social subject.
3. Basic Concept of Economics.
4. Importance of Opportunity Cost to an Individual, Firms and the Government.
5. Basic Economic Problems of the Society.
6. Basic Tools for Economics Analysis.
7. Data Collection and Presentation.

8    Theory of Production.

9. Land as a Factor of Production.
10. Labour as a Factor of Production
11. Revision.

12 & 13. Examination.

REFERENCE BOOKS

• Amplified and Simplified Economics for Senior Secondary School by Femi Longe
• Comprehensive Economics for Senior Secondary School by J.V. Anyaele
• Fundamentals of Economics for SSS By. R.A.I. Anyanwuocha

WEEK ONE

DEFINITION AND THE SCOPE OF ECONOMICS

CONTENT

1. Definition and meaning of Economics
2. The scope of Economics
3. Why do we study economics?

DEFINITION AND MEANING OF ECONOMICS

Economics as a dynamic subject has very many definitions.  It is often said that there are so many definitions of economics as there are economists because they see the subject from different point of view.

Some definition given by some economists includes:

Adam Smith (18^th Century British Economist and Called “Father of Economics”) in 1776 defined economics as “an inquiry into the nature and causes of the wealth of nations”.

John Stuart Mill in 1843 defined economics as “the practical science of production and distribution of wealth”

Alfred Marshal in 1890 defines it as “a study of mankind in the ordinary business of life, earning and enjoying a living”.

1. J. Daven Port defines economics as “a science that treats phenomena from the stand point of price”.

Edvins Canon defines economics as “the study of things having to do with man’s material welfares”.

A.I. Pigou defines economics as “the study of how total production could be increased so that the standard of living of people might be improved’’.

However, the most acceptable and widely used definition was by Professor Lionel C. Robins in 1932, which defines economics as “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”. The reasons for the popularity of this definition is twofold, namely, it is the only definition which mentions:

• The basic economic problem of scarcity and choice.
• The fact that economics is a social science.

THE SCOPE OF ECONOMICS

1. Economics relies on the findings of other social sciences which include ethics, political science, sociology, geography, psychology, philosophy,anthropology,etc, in order to reach sound conclusion concerning human behaviour. This inter-relationship with other social sciences promotes a wider general understanding of social behaviour.
2. Economics is a social science which studies human behaviour or mankind’s economic activities in relation to production, exchange, distribution and consumption of goods and services.
3. It deals with how people react to economic situations and how they behave while engaged in their daily economic activities.
4. Economics deals with the administration of scarce resources in the society.
5. Economics is positive in its study of human behaviour by concerning itself with “What is’, and not normative with “What should be’, and thus point out the full cost- the real or opportunity cost- of achieving our ends.

EVALUATION

1. Give three definitions ofeconomics?
2. Write a short note on the scope of economics.

THE BRANCHES OF ECONOMICS

Economics is broken down into two main broad areas: Micro economics and Macro economics.

Micro economics is the branch of economics that deals with economic action or behaviour of individuals, household and firms. It centers on the analysis of individual prices, market and allocation of specific resources to particular uses e.g. demand and supply etc.

Macro economics in the other hand is the study of the economy as a whole includes among other economic aspects such as inflation, National income, investment, unemployment, international trade etc.

EVALUATION

1. How would you define Economics?
2. What are the two branches of Economics? Explain

WHY DO WE STUDY ECONOMICS

Economics as a social science, studies human behaviour of the individual, firm and government in the ordinary business of life due to the following reasons:

1. The study of economics provides the students with the basic skills for analyzing economic problem thereby preparing them better for positions where economic decisions are needed.
2. It enables a student to understand the nature of the complexity of the economic activities.
3. It is useful in analyzing patterns of socio-economic behaviour.
4. It helps government to promote growth and development thereby improving their standard of living.

5. It enables students to understand and appreciate various government policies where choices have to be made.
6. The knowledge of economics is useful to understand effects of the inequalities in the distribution of income and opportunity.
7. It is useful in effective allocation of scarce resources to various sectors of the economy.

EVALUATION

1. In 2 paragraphs, explain why we study economics
2. Who is the father of economics and how did he define economics?

READING ASSIGNMENT

Amplified and Simplified Economics for SSS by Femi Longe page 1-3

GENERAL EVALUATION QUESTIONS

1. What are the Economic activities?
2. Write six producer goods.
3. List three classical Economist school of thought
4. State two theories put forward by classical school of thought.
5. Highlight two Neo-classical schools of Economic thought.

WEEKEND ASSIGNMENT

1. Economics in its field of study is majorly concerned with……………. (a) what should be (b) what is not (c) what should not be (d) what is
2. Economics is best described as the study of (a) the wealth of nations  (b) how man consumes his products   (c) how man provides for his every day need     (d) the distribution of wealth
3. The study of Economics enables individuals to………… (a) exchange jobs (b) evade taxes  (c) accumulate wealth  (d) make rational decision
4. When the economic situation is viewed from the point of value judgment, economics is said to be………. (a) positive (b) negative (c) normative (d) predictive.
5. In economics, the three major mankind’s economic activities are………….. (a) occupation, production and distribution (b) production, distribution and consumption (c) utilization, production and consumption (d) distribution, exchange and consumption.

SECTION B

1. Give the generally accepted definition of Economics
2. Give three definitions of economics.

WEEK TWO

ECONOMICS AS A SCIENCE, ARTS OR SOCIAL SCIENCE

CONTENT

1. Is Economics a science, Art or social subject?
2. Career prospect for studying economic.

ECONOMICS AS A SOCIAL SCIENCE

Like other pure sciences, economics acquires knowledge (data) through a systematic observation of facts, classifying the mass of data collected into their different relevant areas, using the facts collected for generalization of law, applying the formulated law to analyze new situations with a strong reliance on a certain assumption to enable the law to hold true at all time. The assumption is, “Ceteris Paribus’’ meaning “All things being equal’’.

Economics is basically a social science subject and not an art or pure science due to the following reasons.

1. In pure sciences, such as Chemistry, Physics, Biology, there are observations, selection and classification of relevant materials in making generalization to formulate laws, but in economics its fundamental facts are the daily observation.
2. In pure sciences, observation from laboratory experiments are more precise and can be reproduced exactly, but in economics they are attained from human and cannot be exactly produced.
3. In physical sciences, theories are made from logical deductions but in economics, assumptions are made such as “ceteris paribus” meaning “all other things being equal” though they both use scientific method.
4. Economic laws are based on probabilities while pure sciences have exact relationship.
5. Economics is a social science subject dealing with the behaviour of human, which cannot be predicted.

Economics, therefore, deserves to be called a science subject because it makes use of scientific methods in its area of studies. That is, it makes use of both deductive and inductive methods.

EVALUATION

1. Economics is a science, explain.
2. Give two reasons why economics is regarded as a social science

CAREER PROSPECT FOR STUDYING ECONOMICS

The study of economics leads to professionalism as it provides an individual with employment opportunities in any field or organization. An economist can fit in very well into any organization as long as resources are involved. The acquisition of knowledge of economicshelps an individual to function effectively and efficiently in the following fields.

• Lecturing in higher institution
• Marketing
• Banking
• Managing an organization
• Consultancy, etc

EVALUATION

1. How is the study of economics relevant to individual’s career prospect?
2. Itemize the career opportunities that are opened to an economist .

READING ASSIGNMENT

Amplified and Simplified Economics for SSS by Femi Longe page 11

GENERAL EVALUATION QUESTIONS

1. What is behavioral Science?
2. Define Economics according to Adams Smith.
3. List other subjects related to Economics.
4. Define the term Economic rent.
5. Who are the principle economic unit in any  system?

WEEKEND ASSIGNMENT

1. In order to reach a sound conclusion about human behaviour, economics relies on the findings of other……….. (a) commercial subjects (b) arts subjects (c) pure science subjects (d) social science subjects
2. Unlike pure science, the generalized law in economics is majorly based on……….

(a) certainty (b) probability (c) precision (d) accuracy

3. Career prospect in the study of economics means………….. (a) employment avenue (b) fraudulent avenue (c) job scarcity (d) wealth distribution
4. Economics is often described as a science because it (a) adopts the use of laboratory experiments   (b) uses scientific method to explain observed phenomena (c) deals with observation and field work   (d) involves accurate prediction of human beings
5. Economics as a field of study is a……..(a) pure science (b) political science (c) social science (d)physical science

SECTION B

1. Write short note on the career prospect for studying economics
2. Economics is a science, discuss in two paragraphs.

WEEK THREE

BASIC CONCEPTS OF ECONOMICS

CONTENT

1. Concepts of wants and scarcity
2. Choice and scale of preference
3. Opportunity cost.

CONCEPT OF HUMAN WANTS

Wants refer to numerous goods and services which are desired for consumption.

In economics, wants are what we are interested in having but without money or willingness to part with money to have it at that point in time.

They could be in the form of tangible goods or services. Tangible goods include, goods, houses, television etc; or services such as a driver, cobbler, actor, legal or medical services.

Human wants are insatiable, because the means of satisfying them are limited. i.e. scarce

Wants are also called ends, desires, aims or objectives.

SCARCITY

In economics, Scarcity is defined as “Limited in Supply” that is to say, all things being scarce or limited in supply is in relation to the demand for them.

This means that before we say something is scarce, we must have compared the available quantity with the present level of demand for it based on the available resources.

Goods and services for sale may be plenty but these in economic sense are still scarce as long as people do not have enough money to satisfy all their wants.

So, Scarcity does not mean shortage of resources. Therefore, things can still be regarded as scarce even when it is readily available.

The issue of scarcity is central and fundamental to the study of economics that it may be said that without scarcity there will be no need for the study of economics.

EVALUATION

1.    Write a short note on human wants.

2.    Explain scarcity in economics.

CHOICE

Since human wants are unlimited and resources available to satisfy them are limited, hence choice has to be made.

Choice is therefore the selection among different alternatives.

The decision to have one thing instead of the other implies choice. Such economic decisions are made by individuals, firms and the government. So every economic decision is a choice. The three aspects of choice are:

1. Deciding the resources to be produced and utilized;
2. Deciding how to get the resources;
3. Deciding when to use the resources.

SCALE OF PREFERENCE

This is the list of consumer’s want in order of their importance. It has to do with the ranking  of a person’s want in order of their importance. The want at the top are supposed to be satisfied before other wants.

IMPORTANCE OF SCALE OF PREFERENCE

1. It is a tool for arranging human want.
2. It helps in choice makings
3. It ensures optimum allocation of resources.
4. It shows human want at a glance.
5. It helps consumers to utilize their resources.

OPPORTUNITY COST

This can be defined as an alternative forgone. This concept is also called the real cost or true cost.

For example if Mr. Audu decides to buy a television set instead of a radio set then the opportunity cost of the television set bought is the radio set forgone.

The concept of opportunity cost helps in our daily decision and applies to individual firms and government. It helps an individual to make the right choice among their many needs by allocating his services resources in the best known way.

It helps firms to allocate more of the resources in the production of goods and services, that will give them highest contribution margin (profit). To the government, it helps them to make the right choice as regards what project it slowly spends its resources on. For example, Lagos State government with her limited revenue may decide to provide free education and medical care.

EVALUATION

1. Define Opportunity cost.
2. What is Scarcity of resources?

READING ASSIGNMENT

Amplified and Simplified Economics for sss by Femi Longe page 5-7.

GENERAL EVALUATION QUESTIONS

1. Define Economic goods.
2. Give two examples of Economic goods.
3. Differentiate between Economic goods and non-economic goods.
4. Has the concept of opportunity cost any relevance to the West Africa countries?
5. Distinguish between opportunity cost and money cost.

WEEKEND ASSIGNMENT

1. Opportunity cost is defined as (a) Money cost (b) Cost of production (c) Real cost

(d) Variable cost

2. The most basic concern of the economist is to (a) create human wants (b) satisfy all human wants (c) redistribute income so that it is used correctly (d) the alternative scarce resources to satisfy human wants
3. Scarcity in Economics means that resources are _________ (a) needed to satisfy human wants (b)never enough to share among the producers of goods and services (c) resources to meet essential wants are unlimited (d) are not enough to share among the producers of goods and services.
4. Choice is necessary because resources _______ (a) are limited (b) are scarce (c) can be seen everywhere (d) are available
5. Scarcity in economics refers to ________ (a) a period of production (b) hoarding of goods (c) monopolization of existing supply of resources (d) resources being limited

SECTION B

1. What is scarcity in economics?
2. a. Define opportunity cost.
3. State the opportunity cost in each of the following actions;
4. A shirt purchased for 1000 instead of a pair of shoes;
5. Oranges planted on a farm realizing N50, 000 instead of mango that could have realized N60, 000.

WEEK FOUR

Importance of opportunity cost to individual

CONTENTS

Importance of opportunity cost as related to:

6. Individuals,
7. Firms or organisations
8. Governments

IMPORTANCE OF OPPORTUNITY COST TO INDIVIDUAL

1. It helps individual to make decision.
2. It helps individual to allocate scarce resources.
3. Judicious use of resources.
4. Prioritizing our wants.
5. It helps an individual to make wise choice.

IMPORTANCE OF OPPORTUNITY COST TO FIRMS

1. Decision making.
2. Helps to decide the method of production.
3. Helps in project execution.
4. Guides policy formulation and implementation.

Importance of Opportunity Cost to the Government

1. Resources allocation.
2. Decision making.
3. Preparation of budget.
4. Helps in project execution.

EVALUATION

1. List 3 importance of opportunity cost to individual.
2. State 2 importance of opportunity cost to a firm

READING ASSIGNMENT

Amplified and Simplified Economics for SSS by Femi Longe page 6-7

REVISION/ GENERAL EVALUATION

1. List ten renowned Economics in the world.
2. Why is the scale of preference important?
3. Mention  five importance of studying economics.
4. Give five definitions of Economics by various prominent Economists.
5. Differentiate between Want and Needs.

WEEKEND ASSIGNMENT

1. Opportunity cost is the item…………. (a) left unbought (b) nominal cost (c) bought (d) money cost
2. Opportunity cost helps to ensure…….. allocation of resources (a) wrong (b) optimum (c) minimum (d)   unhealthy
3. Nominal cost is the same thing as………… (a) real cost (b) fixed cost (c) money cost (d) variable cost
4. ……………….. is a situation where a particular goods is traded off in favour of another goods (a) Explicit cost (b) opportunity cost (c) implicit cost (d) marginal cost
5. The problem of making the right choice is resolved with the use of……….. (a) consumer price index (b) preferential treatment (c) scale of preference (d) allocation of resources

SECTION B

1. Differentiate between nominal cost and real cost
2. State three importance of opportunity cost to each of the economic agents.

WEEK FIVE

BASIC ECONOMIC PROBLEMS OF THE SOCIETY

CONTENT

1. What to produce?
2. How to produce?
3. For whom to produce
4. How to achieve effective use of resources?

BASIC ECONOMIC PROBLEMS OF THE SOCIETY

Every economy, whether capitalist, socialist,  mixed economy, developed or developing countries is faced with the basic problems of scarcity of resourceswhich serve as the bane of the following problems confronting the nations of the world.

1. What to produce?
2. How to produce?
3. Forwhom to produce?
4. How to achieve effective use of resources?

WHAT TO PRODUCE

This is the foremost basic economic problem which is concerned with goods and services to be produced and in commercial quantity is the production to be made.

As a problem of resources allocation, what should be produced should depend on the needs and wants of the people which are determined by different factors in different societies.

In a capitalist system, what to produce rests in the hands of private individuals and firms who produce goods and services using the price system to determine the price.

The government determines what to produce in a socialist system based the calculation of social welfare. That is, it is based on the maximization of the welfare of the society as against profit making.In a mixed economy as practised here in Nigeria what to produce is a joint responsibility of the government and private sector individuals.

EVALUATION

1. What are the basic economic problems of any given society?
2. Explain the problem of what to produce in a mixed economy.

HOW TO PRODUCE

The problem of how to produce is concerned with what economic method of production is to be carried out. This include the determination of materials to be used as well as techniques of production and those to organize the production.

Two main methods of production exist in every economy.

1. Labour intensive method
2. Capital intensive method

The labour intensive method employs more people with less capital, while a capital Intensive method employs more capital equipment with less people. In a capitalist economy, private individuals and private resources are mainly used while in a socialist economy the government uses public resources.

FOR WHOM TO PRODUCE

This is the problem of distribution of goods and services among the people. The economic system of the country determines to a large extent the goods and services to be enjoyed. In the capitalist system, price mechanism determines who gets what goods and services, but in a socialist system the government, through centrally planned committee, distributes goods and services according to the needs and individual contributions as determined by the government.Both price mechanism and government decide the distribution of goods and services in a mixed economy system.

EFFECTIVE ALLOCATION OF RESOURCES

Resource has to be efficiently utilized since they are limited relative to the demand for them. It becomes a problem of how this resource can be effectively used in order to maximize output (Increase in production).  When we have maximized outputs with minimum inputs then we can say that available resources have been effectively and efficiently utilized.

EVALUATION

Explain the following:

1. What to produce?
2. How to produce?
3. Whom to produce?
4. How do you enhance efficiency in resources utilization?

READING ASSIGNMENT

Amplified and Simplified Economics for SSS by Femi Longe page 15-17

GENERAL EVALUATION QUESTIONS

1. Explain how the following basic economics problems are solved in a free market economy.

1. What to produce?
2. How to produce?
3. For whom to produce?

1. List and explain the goals of the society.
2. What are the factors that determine what to produce, how to produce?
3. Every economic system is faced with some fundamental economic problems, explain this statement.
4. List and explain five types of wealth.    

WEEKEND ASSIGNMENT

1. Which of the following is not a fundamental economic problem? (a) What to produce? (b) Method of production? (c) For whom to produce? (d) How to enjoy production?
2. Scarcity refers to (a) The absence of goods in the market (b) Period of production (c) Limited resources (d) The control of resources
3. The consumer has to make a choice because wants are (a) Limited while means are unlimited (b) Limited and means are also limited (c) Unlimited while means are limited (d)Unlimited and means are also Unlimited
4. The concept of Economic efficiency primarily implies (a) Producing without waste (b) Obtaining the lowest possible cost (c) Conserving our petroleum resources (d) Equity in the distribution of the nation’s wealth.
5. Economic problem arises because (a) Man is insatiable (b) Money is scarce (c) Resources are scarce relative to wants (d) Man engages in so many economic activities

SECTION B

1. Isolate the basic economic problem of the society and briefly explain each.
2. How can resources be efficiently utilized within an economic system

WEEK SIX

TOOLS OF ECONOMIC ANALYSIS

CONTENT

1. Tables or schedules
2. Graphs
3. Bar chart (simple, component and multiple)
4. Pie Chart
5. Merits and demerits

TABLES OR SCHEDULES

A table is a systematic and orderly arrangement of information, facts or data, using rows and columns for presentation which make it easier for better understanding of  the relationship between variables. It serves as the most commonly used tool in Economics for economic analysis.

FEATURES OF A TABLE

1. It must give an orderly arrangement of data.
2. It must have a title or heading.
3. It must be numbered if many.
4. It must be very simple and easy to understand.
5. The units of measurement used in the table must be stated.

USES OR IMPORTANCE OF A TABLE

1. It reveals information at a glance.
2. It avoids repetition.
3. It makes data easy to understand.
4. It allows for easy interpretation of data.
5. It eases comparison between classes of data.

EXAMPLES OF A TABLE

The table below gives the performance of four students in an entrance examination.

EVALUATION

1. Define Table.
2. State 3 importance of a table.

USE OF A GRAPH

A graph is a diagram showing a functional relationship between two variables. Information presented on table can be translated into a graph for better understanding.  Many types of graphs are used for economic analysis depending on the nature of the data and purpose for which they are intended

EXAMPLE OF A GRAPH

yDemand Curve

Price (N)

D

7

5

3

D            x

O   5     10     15

Quantity

FEATURES OF A GRAPH

1. It must be titled.
2. It must possess appropriate scales.
3. The y and x axis must carry different variables.
4. It must show the source of data presented.
5. The y-axis must be on the vertical side and x-axis on the horizontal side.
6. It must be well labeled for better understanding.

IMPORTANCE OF A GRAPH

1. It shows relationship between two variables.
2. It makes quantitative information illustrated in tabular form clearer and quicker impression.
3. It helps to interpret values of variables.
4. The values or quantities in the table are better understood and appreciated in graph.
5. It provides basis for comparing variables provided in the table.

EVALUATION

1. What is a graph?
2. State five features of a graph

USE OF A CHART

A Chart is a device being used to provide us with the interpretation or presentation of data in the form of diagram or picture. In economics, many types of chart are used for economic analysis among which are bar charts and pie chart.

BAR CHART

A bar chart is a way of representing tabulated data with evenly spaced bars with equal gap. Bar charts can be of three types:-

1. SIMPLE BAR CHARTS: Used for data with one variable.

2. COMPONENT BAR CHARTS: Used for data with two variables.

3. MULTIPLE BAR CHARTS: Used for data with more than two.

Example of simple Bar Charts

Frequency

x

2           4          6          8          10

Scores

Example of Component Bar Charts

Examples of Multiple Bar Charts

EVALUATION

1. Define the meaning of a chart

2.    Highlight three types of chart

PIE CHARTS

This is a circle divided into sections expressed in degrees with each section proportionate to the frequency or attribute. The circle represents the total data and with the use of a compass and protractor it is drawn

Example: In a school the numbers of periods for the subjects are given in a table. Represent the information in a pie chart.

Solution

LINEAR GRAPH

A linear graph is used in comparing between two variables priving a straight-line graph.

Examples

Given that Q = 42 – 2p find the value of Q when p = N1, N3, N5, N7 and N9, where P = Price and Q = Quantities. Represent the information on a line graph

Solution

Q = 42 – 21

When

P = N1, Q = 42 – 2 x N1 – 42 – N2 = N40

P = N3, Q = 42 – 2 x N3 = 42 – N6 = N36

P = N5, Q = 42 – 2 x N5 = 42 – N10 = N32

P = N7, Q = 42 x 2 x N7 = 42 – N14 = N28

P = N9, Q = 42 – 2x N9 = 42 – N18 = N24

Price (N)                                             Quantity (Units)

     1                                                                 40

     3                                                                 56

     5                                                                 32

     7                                                                 28

     9                                                                 24

Example of a linear graph

                y

Price (N)

9- x                   

7-                            x

              5-                  x

3-         x

x

O        36       32      28        24

Quantity

EVALUATION

1. Write short note on pie chart.
2. Explain linear graph in 2 paragraph.

READING ASSIGNMENT

Amplified and Simplified Economics for SSS by Femi Longe page 19-23

GENERAL EVALUATION QUESTIONS

1. Define frequency distribution.
2. Giving the budget estimate of a state for 2010. Use the information to present a bar chart.

Item                                         Amount

Agric                                              70

Sports                                            80

Education                                     110

Health                                            60

Development   30

Finance     50

3. Define a pie chart.
4. Different between a bar chart and a linear graph.
5. The production of carrot and onion by a farmer in Jos for the years 2002-2005.You are required to represent this data using component bar chart:

YearCarrot.         Onion             Total

2001           40                30                  70

2002             30               20                  50

200330               40                  70

2004             20               40                  60

WEEKEND ASSIGNMENT

1. Data presented in tables are usually arranged as (a) Charts and tables (b) Rows and columns (c) Graphs and rows (d) Pie chart

• The diagram is a (a) Bar Chart (b) Pie chart (c) Histogram (d) Ball Chart

The Total number of fruits consumed by a family in a year was 720 represented by the pie chart below. Use it to answer questions 2 – 4

0range 80

3. The quantity of bananas consumed by the family (a) 60 (b) 120 (c) 200 (d) 240
4. The sum total of mangoes and oranges consumed by the family was (a) 200 (b) 360 (c) 400 (d) 520
5. The quantity of carrots consumed by the family was (a) 200 (b) 360 (c) 400 (d) 520
6. Which of the following tools of economics analysis is used when data contains more than one variable. (a) Graph (b) Symbolical statement (c) Bar chart (d) component bar chart

SECTION B

1. (a). Define i. graph ii. Chart iii. table

(b).       List four importance of a table?

2. (a). The daily sales of a department store for one week are as follows:

Present the above data in a bar charts (use a graph)

(b).       Mrs. Lumi purchased food stuffs as follows:

Meat                             N60

Green rice                     N40

Beans               N50

Yam                             N70

Plantain.    N70

Present the above information on pie chart

WEEK SEVEN

DATA COLLECTION AND PRESENTATION

CONTENT

1. Formulation of frequency table for ungrouped data

2. Measures of central tendency:

FORMULATION OF FREQUENCYTABLE FOR UNGROUPED DATA

UNGROUPED DATA: Ungrouped data is one in which the raw data has occurrences or frequencies more than and are without class intervals. In the formulation of frequency table for ungrouped data, two basic steps are taken.

1. Prepare a tally sheet.
2. Prepare a frequency table.

1. PREPARATION OF A TALLY SHEET: This is when the variables are taken one after the other with a stroke called tally. The tally of five makes a bundle i.e.

1. PREPARATION OF A FREQUENCY TABLE: The frequency table is simply obtained by adding the tallies together in a separate column referred to as frequency.

Example: The following are scores of thirty (30) students of SS 1 in an economics test.

2,         4,         8,         8,         2,         6,         6,         8,         2,         4

8,         0,         8,         6,         0,         10,       2,         2,         0,         10

4,         6,         0,         10,       2,         2,         6,         6,         4,         2

MEASURES OF CENTRAL TENDENCY

1. Mean
2. Median
3. Mode

MEASURES OF CENTRAL TENDENCY

Measures of central tendency means are values which show the degree to which a given data or any given set of values will converge toward the central point of the data. It is also called measure of location and is the statistical information that gives the middle or centre or average of a set of data. It includes mean, median and mode.

THE MEAN

Mean or arithmetic mean is defined as the sum of series of figures divided by the number of observations. It is the commonest and the most widely used among the other types of averages or measures of central tendency.

TYPES OF MEAN

1. The Arithmetic Mean
2. The Geometric Mean
3. The Quadratic Mean

Example

Calculate the arithmetic mean of the following scores of eight students in an economics test. The scores are: 14, 18, 24, 16, 30, 12, 20, and 10.

Solution

Add up the scores

14+18+24+16+30+12+20+10 = 144

Number of observation (students) = 8

Arithmetic Mean =Sum of observations divided by Number of observations

=   144      = 18

8

ADVANTAGES OF THE MEAN

1. It is easy to derive or calculate.
2. It is easy to interpret.
3. It is the best known average.
4. It has determinate exact value.
5. It provides a good measure of comparison.

DISADVANTAGES OF THE MEAN

1. It is difficult to determine without calculation.
2. Some facts may be concealed.
3. It cannot be obtained graphically.
4. If one or more value is incorrect or missing, calculation becomes difficult.
5. It may lead to distorted results.

EVALUATION

1. Define mean.
2. What are the disadvantages of mean?

THE MEDIAN

The median is an average which is the middle value when figures are arranged in their order of magnitude either in ascending or descending order, especially from ungrouped data.

Example 1:

Calculate the median of the following scores: 12, 8 15, 9, 3, 7, and 1

Solution

Step 1:             First arrange in order

1, 3, 7, 8, 9, 12 and 15

Step 2:Total frequency is 7, thus the middle number in the set is in the 4th position

Step 3:Median = 4th Position = 8

Example 2:

Find the median of this set of numbers; 36, 42, 10, 15, 9, 32 16 and 12.

Solution

Step 1:             9, 10, 12, 15, 16, 32 36 and 42

Step 2:             Total Frequency = 8

Step 3:             Median = 4th and 5th Position

= 4th + 5th      =  15 + 16

2

=  31                = 15.5

2

Example 3

The following are scores of 20 students in an Economics test. What is the median Mark?

5          10        2          9          5          3          4          6          1          3

2          3          6          1          3          3          2          3          4          3

Solution

Median = f        = 70th + 11th  =  3 + 3           = 6       =  3

x                    2                      2          2

ADVANTAGES OF THE MEDIAN

1. It is easy to determine with little or no calculations
2. It is easy to understand and compute
3. It does not use all values in the distribution
4. It gives a clean idea of the distribution

DISADVANTAGES OF THE MEDIAN

1. It is not useful in further statistical calculation
2. It ignores very large or small values
3. It does not represent a true average of the set of data.

THE MODE

This is the most frequently recurring number in a set of numbers or data,that is to say, it is the number or value with the highest frequency. It tells us the observation which is most popular. The best and easiest way of calculating the mode of any distribution is to form a frequency table for it.

Example

Using the frequency distribution of example 3 above, the mode is 3 because it has the highest frequency of six (6)

MERITS

1. It can be easily understood.
2. It is not affected by extreme values.
3. Easy to calculate from the graph.
4. It is easy to determine.

DEMERIT

1. It can be a poor average.
2. It can be difficult to compute if more than one mode exists.
3. It is not useful in further statistical calculations.
4. All the values used in the distribution are not considered.

EVALUATION

1. What ismedian?
2. Write a short note on measures of central tendency.

READING ASSIGNMENT

Amplified and Simplified Economics for SSS by Femi Longe page 28-33

Comprehensive Economics for SSS by J.V. Anyaele chapter 2 pg 61-70 , chapter 2 pg 48-50

REVISION/GENERAL EVALUATION

1. Find the mean of the following set of numbers 14,11,12,13,11,14,12,20,24,21,22,23,20,11,13,23.
2. Define the median. State four advantages of median.
3. Calculate the mean 18,14,14,15,13,18,19,19,19,21.
4. What are the disadvantages of the mean.
5. Define the mode.
6. List three advantages of the mode

WEEKEND ASSIGNMENT

1. A stroke of five (5) makes up a (a) frequency (b) tally (c) bond (d) bundle
2. The measure of central tendency in which the sum of observations is divided by the number of observations is called……. (a) median (b) mean (c) mode (d) range
3. A data with figures randomly given without any sort of arrangement is called…………. (a) array of data (b) rough data (c) treated data (d) raw data

Use the table below to solve the following questions

3. The mean score is ________ (a) 4.34 (b) 3.34 (c) 3.43 (d) 4. 33
4. The modal score is (a) 2 (b) 3 (c) 4 (d) 5
5. The median score is ___________ (a) 2 (b) 3 (c) 4 (d) 5

SECTION B

1. What are the advantages of median?
2. List three disadvantages of mean.                                

WEEK EIGHT

PRODUCTION

CONTENT

1. Meaning of Production
2. Types (Primary, Secondary and Tertiary)
3. Factors of Production and their Reward
4. Factors that Determine Volume of Production

DEFINITION AND MEANING OF PRODUCTION

Production has diverse meaning,but the usage depends on the context in which it is used .

Production in economics may be defined as the various economic activities aimed at the creation of goods and services and the distribution of these goods to the final consumers for the satisfaction of human wants. That is, production is the making available of goods and services to those who are willing and able to pay for them for the satisfaction of their wants.

Production may equally be defined as the creation of utility while utility is the ability of a commodity or service to satisfy human wants. All goods and services produced must possess utility, which means that they must be capable of satisfying certain human wants.

In effect, economics is not concerned with whether something is good or bad . Its interest is in whether that thing is desired by someone who is prepared to pay for it.Production in economics is never complete until the goods and services produced gets to the final consumers.

TYPES OF GOODS

There are two basic type of goods

Consumers Goods: These are goods that have reached their consumable stage that is; they are ready for use by consumer without undergoing further process of production .They can be durable or non- durable goods.

1. Durable goods have a life span usually more than one year and can be used over and over again e.g. radio , shoes , chairs , computer
2. Non – Durable goods are perishable goods that are consumed almost immediately due to their precarious nature e.g. bread , yam, garri , apple etc.

Capital / Producer goods: These are goods which can be used to produce other goods and services . They include such goods as sewing,  machines, vehicles etc.

Other types of goods Includes

(a)        Non-Economic Goods/Free Goods: Thesegoods are very useful to human existence and survival but not scarce, and thus cannot normally command a price. They are freely available in any quantity desirable to man since they are freely got from nature e.g. air, rain, and water sunshine etc.

(b)        Economic Goods: These are any goods that are useful or valuable and at the same time scarce in its available quantity and which command a price as people are prepared to pay to possess them. They can be utilized and priced according to value and volume.

EVALUATION

1. List and explain types of goods?
2. Define is production.

TYPES OF PRODUCTION

Production is basically divided into two – Direct and Indirect Production.

1. Direct Production: This is the creation of goods and services to satisfy household requirements It is a small scale production to meet family needs.
2. Indirect Production: It is production by specialization for exchange . That is the producer is not attempting to satisfy his own wants directly except to a very limited extent.

CLASSIFICATION OF PRODUCTION

1. Primary Production
2. Secondary production
3. Tertiary Production

Primary Production: This is the first stage of production which is concerned with the extraction of raw materials from land, air and sea. It includes amongst many others produce from agriculture such as animal husbandry, mining , quarrying , oil drilling , cola, crude oil etc.

Secondary Production : This is the processing and transformation of raw materials from primary production into finished goods .At this second stage of production, utility is added to the basic raw materials from primary production. Those in manufacturing  and construction industries are engaged in secondary production.

Tertiary Production: This is the last stage of production which is concerned with the commercial activities and rendering of both direct and indirect services. It is mainly concerned with the distribution of produced goods until they reach the final consumers. Examples are wholesalers, retailers , barbers , bakers , hairdressers, teachers, musicians, soldiers etc.

FACTORS OF PRODUCTION

These are agents of production which are combined in different proportions to achieve production of goods and services. These four factors are:

FACTORS OF PRODUCTION            REWARD

1. Land Rent
2. Labour Wages/salaries
3. Capital Interest
4. Entrepreneurship Profit

FACTORS DETERMINING VOLUME OF PRODUCTION

1. Availability of capital to a producer.
2. Availability of raw materials.
3. Level of efficiency in management.
4. Size of market.
5. Efficiency of other factors of production.
6. High level of technology.
7. The nature of the product.

IMPORTANCE OF PRODUCTION

1. It helps to ensure availability of goods and services.
2. It helps to improve standard of living of people.
3. It helps to provide employment opportunities to people.
4. It helps to enhance increment in people wealth.
5. It helps to boost the country’s export potentials.
6. It helps in the acquisition of skills.
7. It helps to generate income for the government.

EVALUATION

1. Define Production.
2. When is production said to be completed in economics?
3. List the agents / factors of production and give their rewards.

READING ASSIGNMENT

Amplified and Simplified Economics for SSS by Femi Longe page 41-45

GENERAL EVALUATION QUESTIONS

1. What is meant by the term production?
2. Explain with examples the following type of production.

(a) Direct production    (b) indirect production

3. Differentiate between consumer goods and capital goods.
4. Discuss three importance of production

WEEKEND ASSIGNMENT

1. The reward for entrepreneurship is : a) Rent b) Wages  c) Interest d) Profit
2. Which of the following is a reward to a factor of production  a) Interest b) Donation c) Gift d) Subsidy
3. Land is a factor of production because it a) is a free gift of nature b) Contains valuable minerals resources c) assists in the creation of utility  d) is owned by individuals and governments
4. Which of the following factors of production consists of man made goods a) Land b) Labour c) Capital d) Entrepreneur
5. In economics production is completed when  a) goods are manufactured in the factories b) Commodities are sold to the final consumer c) Goods and services get to the retailer d) Producers fix the price of goods produced.

SECTION B

1. Define Production

2. List the agents / factors of production and give their rewards

WEEK NINE

LAND AS A FACTOR OF PRODUCTION

CONTENT

1. Meaning of Land
2. Characteristics of Land
3. Importance of Land (contributions)
4. Law of Diminishing Returns

LAND: This is nature`s contribution to production. As a free gift of nature and its reward is rent. Land is a free gift of nature which refers to all those resources that are purely provided by nature but are utilized by man during the production process. It includes all resources not made by man e.g. land, sea, river, animals, minerals resources, crude oil, gold, diamond etc. Land is said to be a passive factor for it is useless without the application of human effort

CHARACTERISTICS

1. Land is a free gift of nature.
2. It is geographically immobile.
3. It is relatively indestructible.
4. It has no production cost.
5. It’s quality and value varies with its location.
6. It is subject to the law of diminishing returns.

THE LAW OF DIMINISHING RETURNS

This law is also called the law of variable proportions and it states that as more and more units of a variable factor (LABOUR) are applied to one or more fixed factor (LAND), output might initially increase significantly but after a point increasing use of such variable factor will yield less than proportionate returns and output will begin to fall.

This Law is highly applicable to the agricultural and industrial sector of the economy in particular.

Law of Diminishing Returns Table

When one labour is employed to work in one hectare farm, 15 tons of yams are produced. As more and more labouris employed in every successive round of production, the total output continues to increase from 15 to 32 to 54 to72 and so on. But as the seventh (7^th)labouris employed, there is a drop in production from 90 t0 84.

In like manner, the MP increases as more labour are employed up to the fourth (4^th)labourwhere the MP drops to 18 from 24 and becomes negative at the seventh (7^th) labour.

MERITS OF THE LAW OF DIMINISHING RETURNS

1. It helps to enhance proper combination of factors of production.
2. It helps the entrepreneur to change the scale of production through the variation of the quantities of all inputs.
3. It ensures efficiency, productivity and high profitable level in production process.
4. It helps to prevent waste of resources resulting to reduced and minimum cost of production.
5. It helps a producer to know when to stop adding more variable factors into fixed factors to obtain maximum outputs.

EVALUATION

1. Define the law of diminishing returns.
2. List five merits of the law of diminishing returns.

IMPORTANCE OF LAND TO ECONOMIC ACTIVITIES

1. Agricultural activities providing food for consumption and raw materials for industrial and exports takes place on land.
2. It provides areas for forestry and wild life resources.
3. It aids production because it is on itthat firm, Individual and government  built factories , schools, hospitals roads etc.
4. Different mineral resource such as crude oil, gold, coal, etc are derived from land.
5. Bodies of water such as rivers, lakes and sea which are part of land are used for transportation purposes which aids foreign trade.
6. It is the host of other factors of production  in bringing about meaningful productive activities.

EVALUATION

1. What are the economic benefits of land?
2. List the agents / factors of production and give their rewards.

READING ASSIGNMENT

1. Amplified and simplified Economics for SSS by Femi Longe Chapter 4 Pages 43-44
2. Comprehensive Economics for SSS By. J.U. Ampele Chapter 4 Pages 93 – 96
3. Fundamentals of Economics for SSS By. R.A.I. Anyanwuocha Chapter 4 Pages 22 – 26

GENERAL REVISION

1. Highlight the basic concept in Economics

1. Outline at least five characteristics of science used by economics in its field.
2. Why is Economics a science?
3. State three career prospect for the study of economics.
4. State the branches of Economics.

WEEKEND ASSIGNMENT

1. Land is a factor of production because it( a) is a free gift of nature( b) contains valuable minerals resources (c) assists in the creation of utility  (d) is owned by individuals and governments
2. The law of diminishing returns applies to…………….. (a) the average product (b) land as factor of production in the short run only (c) the cultivation of crops only (d) production of essential commodities in the long run
3. The only factor of production that is a free gift of nature is…………. (a) capital (b) labour (c) land (d) entrepreneur
4. …………… is subject to the law of diminishing returns (a) production (b) land (c) capital (d) labour
5. The reward of land is………………(a) interest (b) salary (c) profit (d) rent

SECTION B

1. Define land as a factor of production.
2. Define the law of variable proportions.

WEEK TEN

LABOUR AS A FACTOR OF PRODUCTION

CONTENT

1. Meaning of labour
2. Characteristics of labour
3. Types of labour
4. Importance of labour
5. Efficiency of labour

LABOUR may be defined as all forms of human efforts both mental and physical efforts put towards the production of goods and services. It is one of the variables factors of production cannot take place without the utilization of labour. The reward of labour is in the form of wages and salaries.

CHARACTERISTICS OF LABOURS

1. It is supplied by human beings.
2. It is highly mobile.
3. It is variable and unpredictable.
4. It cannot be stored.
5. Its ownership and use cannot be separated.

TYPES OF LABOUR

There are three common types of labour:

1. Unskilled Labour : These are workers with little or no education who use only their physical energy in carrying out their work . e.g. messengers , cleaners, gardenerse.t.c.

1. Semi -Skilled Labour : This category of labour is between unskilled and skilled labourThese are workers who have little education and training . They combined both physical and mental efforts in carrying out their work . e.g. typist , tailors , carpenters , drivers , clerks e.t.c.

1. Skilled Labour : This category of workers make use of their mental effort in production. This labour has undergone a relatively long and specialized type of training in institutions of higher learning. They usually hold administrative and managerial positions, e.gaccountants, lawyers, teachers, engineers involves the use of mental effort (brain ) in carrying out production process.

IMPORTANCE OF LABOUR

1. It provides the required skills needed for production activity.
2. It influences other factors of production since without labour, capital and land will remain idle.
3. It is required for the operation of machine in industry.
4. It helps to produce goods and services.
5. It is important for producing human effort  required needed in production of goods and services.

EVALUATION

1. Define labour as a factor of production.
2. Mention three types of labour.

EFFICIENCY OF LABOUR

Efficiency of labour means the ability of a worker to increase his output per hour without any loss in the quantity and quality of the goods produced. That is, it is the measure of the level of productivity of a labour in terms of his optimum use of resources to produce goods within a given period of time without any loss in the quantity and quality of goods produced.

The major aim of all employers of labour is to get the maximum output from their workers, and to get this, efforts are therefore made to keep them happy. This is what is being done by various employers of labour both in the public and private enterprises to increase the efficiency of their employees.

FACTORS AFFECTING EFFICIENCY OF LABOUR

1. Moderate increase in the wages and salaries of workers.
2. Provision of social amenities such as medical services, pipe-bone water, recreational facilities, electricity, canteen, etc.
3. Provision of better condition of services.
4. Improvement in the working condition of workers.
5. Efficiency of other factors of production.
6. Level of educational attainment and training.
7. Improvement in the level of technological development.
8. Granting of encouragement in terms of incentives to workers.

EVALUATION

1. What is efficiency of labour?
2. Highlight factors affecting efficiency of labour.

READING ASSIGNMENT

Amplified and simplified Economics for SSS by Femi Longe Chapter 4 Pages 45- 49

Fundamentals of economics by R.A.I Anyanwuocha Chapter 4 Pages 25 – 26 Chapter 12 Pages 102 – 105

GENERAL REVISION

1. Differentiate between labour as a factor of production and land.
2. What is meant by the term production?
3. What are the contributions of land to economic activities in Nigeria?
4. When is production said to be completed in economics?
5. Itemize the names of five renowned economists.

WEEKEND ASSIGNMENT

1. The category of workers without formal education and training but have the   knowledge and participate in production is………. (a) unskilled labour  (b) skilled labour (c) semi-skilled labour (d) untrained labour
2. The factor of production with the highest degree of mobility is……….. (a) capital (b) entrepreneur (c) land (d) labour
3. The reward accrued to labour for its participation in production is………….(a) interest (b) wages (c) bonus (d) profit
4. The ability to increase output at its best quality within a given time frame is referred to as…………(a) supply of labour (b) mobility of labour (c) efficiency of labour (d) demand for labour
5. The unskilled labour is the category of workers who engage in………… (a) white – collar job (b) yellow – collar job (c) brown – collar job (d) blue – collar job

SECTION B

1. What will a producer of goods and services do to improve the efficiency of his workers?
2. Briefly outline the uniqueness of labour as a factor of production.