Areas of Concentration
SECTION 1: Basic Economic Concepts, Tools and Systems+
Topics to Cover:
- •Economics as a science: (a) Basic Concepts: wants, scarcity, choice, scale of preference, opportunity cost, rationality, production, distribution, consumption. (b) Economic problems of: what, how and for whom to produce and efficiency of resource use. (c) Application of PPF to solution of economic problems.
- •Economic Systems: (a) Types and characteristics of free enterprise, centrally planned and mixed economies (b) Solutions to economic problems under different systems (c) Contemporary issues in economic systems (economic reforms e.g deregulation, banking sector consolidation, cash policy reform).
- •Methods and Tools of Economic Analysis: (a) Scientific Approach: inductive and deductive methods; positive and normative reasoning (b) Basic Tools: tables, charts and graphs; measures of central tendency (mean, median and mode); measures of dispersion (variance, standard deviation, range); merits and demerits of the tools.
What JAMB will test you on:
- Compare various concepts in economics and their applications, and interpret graphs/schedules in relation to the concepts.
- Identify economic problems and proffer solutions to them.
- Compare the various economic systems, apply the knowledge to contemporary issues in Nigeria, and proffer solutions to economic problems under different systems.
- Distinguish between various forms of reasoning (inductive/deductive, positive/normative) and apply them to real life situations.
- Use analytical tools (central tendency, dispersion, graphs) to interpret and analyse economic data, and understand their merits and demerits.
SECTION 2: Microeconomics (Demand, Supply, Production and Markets)+
Topics to Cover:
- •The Theory of Demand: (a) Meaning and determinants of demand, schedules and curves, distinction between change in quantity demanded and change in demand (b) Types of demand: Composite, derived, competitive and joint demand (c) Types, nature and determinants of elasticity (price, income and cross elasticity) (d) Importance of elasticity of demand.
- •The Theory of Consumer Behaviour: (a) Basic Concepts: utility (cardinal, ordinal, total, average and marginal utilities), indifference curve and budget line (b) Diminishing marginal utility and the law of demand (c) Consumer equilibrium using indifference curve and marginal analyses (d) Effects of shift in budget line and indifference curve (e) Consumer surplus and its applications.
- •The Theory of Supply: (a) Meaning and determinants of supply, schedules and curves, change in quantity supplied vs change in supply (b) Types of Supply: Joint/complementary, competitive and composite (c) Elasticity of Supply: determinants, measurements, nature and applications.
- •The Theory of Price Determination: (a) Concepts of market and price (b) Functions of the price system (c) Equilibrium price and quantity in product and factor markets; Price legislation and its effects (d) Effects of changes in supply and demand on equilibrium (e) Simple linear equation of demand and supply.
- •The Theory of Production: (a) Meaning and types (b) Concepts of production and interrelationships (TP, AP, MP and the law of variable proportion) (c) Division of labour and specialization (d) Scale of Production: Internal and external economies of scale (e) Production functions and returns to scale (f) Producers’ equilibrium isoquant-isocost and marginal analyses (g) Factors affecting productivity.
- •Theory of Costs and Revenue: (a) Concepts of cost: Fixed, Variable, Total, Average and Marginal (b) Concepts of revenue: Total, Average and Marginal (c) Accountants’ and Economists’ notions of cost (d) Short-run and long-run costs (e) Marginal cost and the supply curve of firm.
- •Market Structures: (a) Perfectly competitive market: Assumptions, characteristics, short-run and long-run equilibrium (b) Imperfect Market: Pure monopoly, discriminatory monopoly and monopolistic competition (short/long-run equilibria) (c) Break-even/shut-down analysis in the various markets.
- •Factors of Production and their Theories: (a) Types, features and rewards (b) Determination of wages, interest and profits (c) Theories: marginal productivity theory of wages and liquidity preference theory (d) Factor mobility and efficiency (e) Unemployment and its solutions.
What JAMB will test you on:
- Identify determinants of demand/supply, interpret curves, differentiate between quantity demanded/supplied vs shifts in curves, and compute/interpret elasticities.
- Explain utility concepts, apply the law of demand using marginal utility analysis, and determine consumer equilibrium using indifference curves.
- Evaluate the effects of government interference with the price system, differentiate minimum/maximum price legislation, and determine equilibrium values using linear equations.
- Relate TP, AP and MP with the law of variable proportion, compare economies/returns to scale, and determine firm equilibrium using isoquant-isocost analysis.
- Explain cost/revenue concepts, differentiate accountants’ vs economists’ costs, interpret short/long-run cost curves, and establish the relationship between MC and supply.
- Analyse the assumptions, characteristics, and equilibria of perfectly competitive and imperfect markets, and establish conditions for break-even/shut-down.
- Identify features and rewards of factors of production, analyse determination of wages/interest/profits, interpret marginal productivity/liquidity preference theories, and suggest solutions to unemployment.
SECTION 3: Macroeconomics (National Income, Money and Public Finance)+
Topics to Cover:
- •National Income: (a) Concepts of GNP, GDP, NI, NNP (b) Measurements and their problems (c) Uses and limitations of estimates (d) Circular flow of income (two and three-sector models) (e) Concepts of consumption, investment and savings (f) The multiplier and it effects (g) Elementary theory of income determination and equilibrium national income.
- •Money and Inflation: (a) Types, characteristics and functions of money (b) Demand for money and the supply of money (c) Quantity Theory of money (Fisher equation) (d) Value of money and the price level (e) Inflation: Types, measurements, effects and control (f) Deflation: Measurements, effects and control.
- •Financial Institutions: (a) Types and functions (traditional, central bank, mortgage banks, merchant banks, insurance companies, building societies) (b) Role in economic development (c) Money and capital markets (d) Financial sector regulations (e) Deposit money banks and creation of money (f) Monetary policy and instruments (g) Challenges facing financial institutions in Nigeria.
- •Public Finance: (a) Meaning and objectives (b) Fiscal policy and instruments (c) Sources of government revenue (taxes, royalties, rents, grants and aids) (d) Principles of taxation (e) Tax incidence and its effects (f) Effects of public expenditure (g) Government budget and public debts (h) Revenue allocation and resource control in Nigeria.
- •Economic Growth and Development: (a) Meaning and scope (b) Indicators of growth and development (c) Factors affecting growth and development (d) Problems of development in Nigeria (e) Development planning in Nigeria.
What JAMB will test you on:
- Compare ways of measuring national income, interpret the circular flow of income, calculate multipliers, and explain consumption/investment/savings.
- Identify factors affecting demand/supply of money, identify components in the Quantity Theory of money (Fisher equation), calculate the consumer price index, and examine inflation/deflation controls.
- Explain roles of financial institutions, distinguish between money and capital markets, explain the money creation process, and examine monetary policy instruments.
- Explain fiscal policy instruments, analyse principles/incidence of taxation, examine effects of public expenditure/budgets, and highlight criteria for revenue allocation in Nigeria.
- Distinguish between economic growth and development, highlight indicators, examine problems of development in Nigeria, and examine the role of planning.
SECTION 4: Applied Economics (Nigerian Economy and International Trade)+
Topics to Cover:
- •Agriculture in Nigeria: (a) Types and features (b) Role in economic development (c) Problems of agriculture (d) Agricultural policies and their effects (e) Instability in agricultural incomes (causes, effects and solutions).
- •Industry and Industrialization: (a) Concepts and effects of location and localization of industry in Nigeria (b) Strategies and Industrialization in Nigeria (c) Industrialization and economic development in Nigeria (d) Funding and management of business organization (e) Factors determining the size of firms.
- •Natural Resources and the Nigerian Economy: (a) Development of major natural resources (petroleum, gold, diamond, timber etc) (b) Contributions of the oil and the non-oil sectors (c) Linkage effects (d) Upstream/downstream of the oil sector (e) The role of NNPC and OPEC in the oil sector (f) Challenges facing natural resources exploitation.
- •Business Organizations: (a) Private enterprises (sole-proprietorship, partnership, limited liability companies, cooperative societies) (b) Problems of private enterprises (c) Public enterprises and their problems (d) Funding and management (e) Factors determining firm size (f) Privatization and Commercialization as solutions.
- •Population: (a) Meaning and theories (b) Census: importance and problems (c) Size and growth: over-population, under-population and optimum population (d) Structure and distribution (e) Population policy and economic development.
- •International Trade: (a) Meaning and basis for international trade (absolute and comparative costs etc.) (b) Balance of trade and balance of payments: problems and corrective measures (c) Composition and direction of Nigeria’s foreign trade (d) Exchange rate: meaning, types and determination.
- •International Economic Organizations: Roles and relevance of international organizations e.g. ECOWAS, AU, EU, ECA, IMF, EEC, OECD, World Bank, IBRD, WTO, ADB and UNCTAD etc. to Nigeria.
What JAMB will test you on:
- Assess the role of agriculture, appraise agricultural policies in Nigeria, and evaluate the causes/effects of instability in agricultural incomes.
- Differentiate between location and localization of industry, examine industrialization problems/strategies, and examine the role of industry.
- Trace the development of major natural resources, distinguish between upstream/downstream oil activities, and examine the roles of NNPC and OPEC.
- Compare features of private business organizations, identify features of public enterprises, and differentiate between privatization and commercialization.
- Analyse population theories, examine uses/limitations of census data, and appraise government population policy in Nigeria.
- Differentiate between absolute and comparative advantages, distinguish between balance of trade/payments, highlight corrective measures, and examine exchange rate determination.
- Identify various economic organizations (ECOWAS, IMF, World Bank, etc.) and evaluate their relevance to the Nigerian economy.
Recommended Textbooks
- Aderinto, A.A et al (1996) Economics: Exam Focus, Ibadan: University Press Plc.
- Black, J. (1997) Oxford Dictionary of Economics. Oxford: Oxford University Press.
- Eyiyere, D.O. (1980) Economics Made Easy, Benin City: Quality Publishers Ltd.
- Fajana, F. et al (1999) Countdown to SSCE/JME Economics. Ibadan: Evans.
- Falodun, A.B. et al (1997) Round-up Economics, Lagos: Longman.
- Kountsoyiannis, A. (1979) Modern Microeconomics, London: Macmillan.
- Lipsey, R.G. (1997) An Introduction to Positive Economics, Oxford: Oxford University Press.
- Samuelson, P and Nordhaus, W. (1989) Economics, Singapore: McGraw-Hill.
- Udu E and Agu G.A. (2005) New System Economics: a Senior Secondary Course, Ibadan: Africana FIRST Publishers Ltd.
- Wannacott and Wannacott (1979) Economics, New York: McGraw-Hill.
- Brownson-oton Richard (2010). What is Micro-Economics? Niky Printing and Publishing coy.
- Brownson-oton Richard (2010) What is Macro-Economics? Niky Printing and Publishing coy.
