Economics outline


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Economics outline

  1. 1. ECONOMICSCURRICULUM FORMS 3 – 5 A division of the Caribbean Secondary Education Certificate Syllabus Effective September 2010Based on the following allocation of periods Form 3 3 – 35 minutes periods per week Form 4 & 5 5 – 35 minutes periods per weekJacqueline RichardsonBusiness Education OfficerMinistry of Education, Sports, Youth and Gender Affairs 1
  2. 2. FORM 3 CONTENT SECTION TOPIC a) Economics as a Social Science - The creation of wealth out to scarce resources - The production and distribution of goods and services - The behaviour, interactions and welfare of those involved in the process - Economics as a trade off b) An economy as a mechanism - Organization of resources for production of goods and services The Nature of - Satisfaction of society’s needs and wants 1 Economics c) Main sectors in an economy d) Concepts of scarcity and choice e) Opportunity cost and money cost f) Illustration of Production Possibility Curve g) Influence on consumers in making economic decisions h) Influence on producers in making economic decisions a) Definition of Production b) Differences between production and productivity c) Factors of production - Resources both human and non-human, required to produce goods d) Types and description of economic resources as Production, factors of production Economic 2 Resources and i) - Land Definition - Characteristics Resources - Types Allocation - Importance - Productivity ii) Labour - Definition - Characteristics - Functions - Division of labour - Specialization of labour - Productivity - Efficiency - SupplyPrepared by Jacqueline RichardsonBusiness Education Officer
  3. 3. ii) Capital - Definition - Characteristics - Types - Accumulation - Importance as a substitute for labour iii) Entrepreneurial talent - Definition - Importance - Functions e) Rewards of factors of production - Rent - Wages and salaries - Interest Production, - Profit Economic f) Fixed, variable, total, average and marginal costs Resources and g) Differences between short run and long run Resources h) Goods (tangible) and services ( intangible) Allocation (cont’d) i) Resource allocation - What to produce - How much to produce - For whom to produce j) Types of economic systems - Traditional (subsistence farming, bartering) - Command or planned (socialist) - Free or capitalist (market) - Mixed ( public and private) k) Characteristics of each economic system in relation to - ownership of the factors of production - Role of government - Role of the private sector - How each economic system allocates resources l) Merits and demerits of economic system in terms - of its efficiency in allocating scarce resources - in providing goods and services to each sector of the populationPrepared by Jacqueline RichardsonBusiness Education Officer
  4. 4. FORM 4SECTION TOPIC CONTENT Production, m) Types of business organizations in a free market Economic n) Features of each type of business organization 2 o) Technical, marketing, financial and risk-bearing Resources and economies Resources Allocation p) concept of diseconomies of scale q) advantages and disadvantages of division of labour a) Concept of a market b) Definition of supply and demand c) The relationship between price and quantity demanded, and price and quantity supplied d) The concept of ceteris paribus e) Diagrammatic representation of demand curve and supply curve f) Demand and supply conditions – factors determining the environment for price movement 3 Market and Prices (cont’d) g) Diagrammatic representations and analyses of hw changes to the determinants affect demand and supply curves h) Market equilibrium – agreement between consumer and supplier on the price and quantity of goods demanded and offered i) Diagrammatic representation of market equilibrium j) The impact of changes in market conditions on market equilibrium k) Illustration of the market equilibrium l) Price elasticity of demand - Concept of price elasticity of demand and its determinants - Concept of income and cross elasticity of demand m) Factors affecting price elasticity of demand n) Illustration, by graphs and tables, of changes in conditions of demand and supplyPrepared by Jacqueline RichardsonBusiness Education Officer
  5. 5. a) The financial Sector: the complex mix or network of markets, households, businesses, governments, laws and institutions interacting with one another b) The roles of the Financial Sector in mobilizing and making loanable funds available from savers to spenders for consumption and investment purposes c) Functions of the financial sector d) Economic activities that are not officially regulated and which take place outside the formal norms of business transactions. e) Money as any item considered acceptable to be used as payment for goods and services f) From bartering to modern forms of payments Financial Sector g) Four main functions of money 4 h) Four main qualities of money i) Money supply: the total stock of money in the economy at any moment j) Roles of the Central Bank and the following financial institutions Commercial Bank Stock Exchange Share Market Credit Union Development Bank Insurance Company Mutual Fund Building Society Investment Trust Company Informal credit institutions (Sou Sou, Box, Partner, etc.) k) Financial instruments; treasury notes and bonds corporate bonds municipal bonds equity securities a) Role of government eg. in taxation and expenditure and transfer policies 5 Economic b) Definition of the following terms and concepts Management: - national budget Policies and - national income - disposal income Goals - national debtPrepared by Jacqueline RichardsonBusiness Education Officer
  6. 6. - fiscal policy - fiscal deficit - monetary policy - economic growth - economic development - developing economy - developed economy - balance of payment - GDP - GNP - employment - unemployment - inflation - deflation - savings - investment c) Flows of goods and services and factors of production between firms and households d) Illustration of basic flow diagram consisting of Economic households, firms, government and financial institutions Management: e) GDP: a measure of national output 5 Policies and GNP: a measure of the increase or decrease in the standard of living Goals Calculation of GDP and GNP f) Nominal output, real output and potential output g) Economic growth and economic development h) Inflation and recession i) The major causes and consequences of inflation and recession j) Government’s role in reducing inflation k) Government’s role in relieving recession l) Types of unemployment - structural - cyclical - frictional - seasonal - real-wage m) Causes and measures to reduce each type of unemployment n) The role of Trade Unions in a free market economyPrepared by Jacqueline RichardsonBusiness Education Officer
  7. 7. FORM 5SECTION TOPIC CONTENT a) Definition of the following terms and concepts - Balance of trade - Current account - Capital account - Balance of payments - Balance of payments - Disequilibria - Tariff - Common Eternal Tariff (CET) - Quota (non-tariff barriers) - Exchange rate - Exchange rate regimes - World Trade Organisation (WTO) International 6 Trade b) The concept of comparative advantage and gains from trade. International trade as a “win-win” situation c) Factors that influence International Trade - On the import side - On the export side d) Terms of trade e) Factors that influence the level of an exchange rate f) Fixed, Floating and managed exchange rate regimes g) Appreciation and depreciation of a currency h) Downward and upward adjustment to the value of a currency i) Balance of payments as a balance sheet indicating all the international transactions with the rest of the world j) Balance of trade as the difference between the values of exports and imports of visible and invisible k) Current account, capital account and the official financial account l) Entries that would appear in the balance of payments accountPrepared by Jacqueline RichardsonBusiness Education Officer
  8. 8. m) Surplus as excess of receipts over payments: deficit as excess of expenditure over receipts n) Factors that give rise to surpluses o) Factors that give rise to a deficit p) Possible consequences of balance of payment surpluses and deficits q) Possible remedies for balance of payments surpluses and deficits a) Main characteristics of Caribbean economies: market size, resources, nature of dependency b) Economic problems associated with Caribbean economies 7 Caribbean c) Definition of the following terms and concepts Economies in - Debt burden a Global - Structural adjustment Environment - Economic integration - Protectionism - Laissez-faire - Common market - Economic union - Customs union - Globalization - Trade liberalization - Bi-lateral agreement - Multi-lateral agreement - International monetary Fund (IMF) - Caribbean Community (CARICOM) - African, Caribbean and Pacific (ACP) - Free Trade Area of America (FTAA) - Association of Caribbean States (ACS) - Caribbean and Canadian Association (CARIBCAN) - Caribbean Single Market and Economy (CSME) - World Bank - Organisation of Eastern Caribbean States (OECS) - European Union (EU) - Caribbean Basin Initiative (CBI) - Caribbean Development Bank (CDB) - Foreign Direct Investment (FDI) d) Definition and explanation of preferential tariffs including those offered by the European Union (EU)Prepared by Jacqueline RichardsonBusiness Education Officer
  9. 9. e) Benefits and costs of preferential tariff arrangements in light of discussions within the World Trade Organisation (WTO) f) Trade liberalization in the context of the termination of all preferential tariff arrangements world wide g) Globalization in the context of open competition on a world scale h) The free movement of goods, capital, labour and Caribbean technology Economies in i) Social and economic benefits of producing goods in large a Global quantities Environment j) Possible social and economic benefits to be derived from the free movement of capital, goods and labour within CARICOM k) Effects of globalization and trade liberalization on firms, consumers and the sovereignty of territories l) Concepts and challenges of e-commerce m) Definition of e-commerce or e-business n) Benefits of e-commerce or e-business o) Challenges of e-commerce or e-businessStudents should be tested using past paper question under exam conditions.Students should be given clear guidelines on their SBA Projects as outlined in the Syllabus. TheSBA component should begin no later than Term 1 in Form 5.Term 2 Form 5 should be used for completion of SBA Projects, revision and further practice onPast Papers.Prepared by Jacqueline RichardsonBusiness Education Officer