ACYRONMS OF ECONOMICS

USEFUL /IMPORTANT CYRONMNS OF DIFFERENT QUESTIONS IN ECONOMICS THAT CAN HELP YOU TO
GET AN ``A``.

1. METHODS OF DETERMINING PRICES IN UGANDA.

Use ``BRAC MOPS``

P220/2 2007: Explain the methods of determining prices of commodities in Uganda.

How are prices determined in Uganda?
Letter Point Brief explanation
B Bargaining
R Resale price
maintenance
A Auctioning
C Collusion
M Market forces of demand
and supply
O Offers at fixed prices by
individual
P Price leadership
S Signing treaties
/agreement

2.CAUSES OF INFLATION
6
Use: ``SPRING BE D``
P220/2: Account for the persistent inflation in Uganda.
S Speculation HOW
P Political instability
R Rising costs of production
I Importation of goods from countries experiencing
inflation.
N Natural hazards/disasters
G Greed for excessive profits by traders.
B Breakdown of infrastructure
Excessive government expenditure
Excessive issuing of currency by the current
Excessive lending by the central bank.
E6 Excessive inflow of income from abroad.
Excessive exportation of essential goods
Excessive gov`t borrowing from the central bank
Depreciation of local currency

3.DETERMINANTS OF NATIONAL INCOME / ECONOMIC GROWTH / INVESTMENT/ CAPITAL

ACCUMULATION.

Use: ```GREAT PSALM KIPIL```

LETTER Point How

G Government policy on
investment
R Resource utilization
(level of)
E Entrepreneurial skills
(level of)
A Accountability (level of )
T Technology (level of )
P Political Climate
S Savings (level of )
A Attitude towards work
L Labour skills
M Market Size
K Capital stock (level of)
I Inflation (rate of )
P Population Growth rate
I Infrastructure
development (level of)
L Land tenure system
 (nature of)

4.FORMS OF NON-PRICE COMPETITION / How do oligopoly firms increase sales in Uganda?

Use``FACO GOT SOAP``

LETTER METHOD HOW
F Free samples (Provision
of)
A After sales services
(Provision of)
C Credit facilitates
(Provision)
O Opening up new
branches
G Giving gifts to consumer
O Organizing consumer
games.
T Trade fairs and
exhibitions (organizing)
S Sponsoring sports Events
O One stop shopping
center (use of )
A Appealing slogans and
brand names
P Persuasive
advertisement (use of )
5. CAUSES OF INCOME INEQUALITIES = CAUSES OF WAGE DIFFERENCES

Use: ``JB HATED TEO``

NB: Begin the point statement with differences in ……... apart from Discrimination in labour
market.

LETTER POINT EXPLAINATION

J ( Compensated for risking
.Nature of Job their lives
B Bargaining power of individuals Able to convince the
employers
H Number of Hours Worked Able to Afford paying high
wages
A Ability And willingness of the employer Special skills/efficient
T Talents and natural gifts (level of ) Much contribution to
employer`s
revenue/efficient
E Education and training (level of ) Female and young
considered to be with less
responsibilities.
D Discrimination in the labour market Strong unions are
recognized and able to
bargain for high wages
T Strength of trade Union
E Experience (level of ) Efficient
0 Amount output produced
6. TOOLS OF MONETARY POLICY

USE: ``MR BCM LOSS``

P220/2 2015: Explain the methods used by the Central Bank to regulate money supply in
Uganda.

Letter Tool Brief explanation

M Moral suasion
R Rationing of credit
B Bank rate
C Cash ratio
M Margin requirement
L Legal reserve requirement
O Open Market operation
S Selective credit control
S Special deposits

7. REASONS FOR IMPOSING TAXES /OBJECTIVES OF FISCAL POLICY/ AIM OF BUDGET/PUBLIC

FINANCE.
Use: ``I HIDE MY RIB``
Qualifiers use ``to ``in order to, `so as to` `for the purpose of`

Letter Point How?

I (Protect) infant industries
from foreign competition
H (Control consumption of)
harmful products
I Control inflation
D (control Dumping
E
Promote economic growth
M (control )monopoly
Y (Reduce) Y inequalities
R Raise government revenue
I Influence investment
B (Improve the)B.O.P position
8. NEGATIVE EFFECTS/IMPACT/CONSEQUENCES OF TAXATION
USE: ``MIRRY IS WET``
P220/2 2014: Discuss the demerits of imposing taxes in Uganda.

LETTER POINT HOW?

M Misallocation of resources
I Inflation-Indirect taxes
R Resentment of government-
hatred
R Reduces volume of
trade/Retaliation in trade
Y Y in equality-regressive taxes
I Investment discouraged
S Savings discouraged
W Welfare reduces
E Effort and hard work
discouraged.
T Trade malpractices is
encouraged

9. FORMS OF ECONOMIC DEPENDENCE

USE`` SETD``

LETTER POINT HOW

S Sectoral dependence Just You need define them
and understand.
E External resource
dependence
T Trade dependence
D Direct dependence

10. METHODS OF WAGE DETERMINATION.

USE ``PEM ICTW``

LETTER POINT HOW ?

P Piece Rate system
E Employers setting wages
M Market forces of demand
and supply.
I Individual bargaining
 C Collective bargaining
T Time rate system
W Work done

11. PRINCIPLES OF TAXATION/FEATURES.

USE``4C PIECES``

LETTERS POINT HOW?

C Comprehensiveness Here we supposed to explain
each feature in one way or
the other.
C Certainty
C Consistence
C Convenience
P Productivity
I Impartiality
E Equity
C Cheapness
E Elasticity
S Simplicity

12. REASONS FOR DEVELOPMENT PLANNING.

USE``DUBAI FIRE``

LETTER POINT HOW ?

D Dependence (reduce)
U Unemployment (Reduce)
B B.o.p ( Increase)
A Allocation of resources
I Income inequalities. (Reduce
F Foreign aid (Solicit )
I Inflation (control)
R Resource utilization
E Economic growth
13. TOOLS OF PROTECTIONISM
USE`` MATTIQQS``

LETTER POINT HOW ?

M Manipulation of Exchange
rates
A Administrative costs
T Total Ban
T Tariffs
I Import licensing
Q Quotas
Q Quality control measures
S Subsidization of the local
industries.

14. CAUSES OF UNEMPLOYMENT

USE``PUT CRIPPLED M``

LETTER POINT HOW?

P POLITICAL INSTABILITY
U Unfavorable climatic
conditions
T Technological progress
C Capital (Limited)
R Rural Urban migration
I Ignorance of People about
available jobs.
P High population growth rate
P Physical and mental
disabilities.
L Poor land tenure system
E Poor Education system.
D Discrimination at labour
market according to sex.
M Limited market size
15. TOOLS OF TRADE UNIONS
USE`` ABCD VS GIC ``

LETTER POINT HOW?

A Abduction
B Boycotts (De
campaigning/discouraging
customers)
C Collective bargaining
D Demonstration (posters)
V Violet strikes (spoiling
property)
S Sit down strike
G Go slow strike
I Industrial arbitration.
C Court action

16. METHOD OF DEBT REPAYMENT

USE`` BRAC TR PAFS``

LETTER POINT HOW?

B Borrowing from the central
bank
R Rescheduling of Debts
A Appealing for debt
cancellation.
C Debt Conversion.
T Taxation
R Repudiation of the Debt
P Privatization of public
enterprises
A Use of accumulated profits
from the government
enterprises.
F Sinking Fund
S Sale of government
17. FACTORS THAT AFFECT CREDIT CREATION
USE`` ACIDIC PIG LAB``

LETTER POINT HOW?

A Awareness about banking
facilities
C Collateral security
I Rate of Inflation
D Nature of distribution of
commercial Banks
I Level of Investment
C Credit worthy customers
P Political climate
I Interest rate on loans
G Government monetary policy
L Liquidity preference
A Level of Accountability
B Size of Bank Deposit.

18. REASONS FOR IMPOSING A MINIMUM WAGE

USE``BYE DR PIISUP``

LETTER POINT HOW?

B Brain Drain (To reduce)
Y Income inequalities ``
E Exploitation of employees by
employers
D Aggregate Demand (To
reduce)
R Revenue by the government.
(To increase)
P Popular (Govt in power)
I Encourage Investment &
savings
I Control Industrial people
S Stabilize incomes of workers.
U Control Voluntary
Unemployment
P Labour productivity
(Increase)
19. DETERMINATS OF DEMAND.
USE``I EAT 4PIGS``.

LETTER POINT HOW?

I Income distribution
E Expectation of future price
increases
A Advertisement
T Tastes and Preferences
P Population size
P Political atmosphere
P Price of substitutes
P Price of complements
I Income of the consumers
(level of)
G Government policy on taxes
S Seasonal factor

20. DETERMINANTS OF SUPPLY

USE``WGN PEM CAPTAINGE``

LETTER POINT HOW?

W Working Condition

G Government Policy on
N Number of producers
P Political atmosphere
E Expectation of future price
increases
M Market Size
C Cost of production
A Aim of the producer
P Price of the commodity
T Technology
A Availability of factor input
I Infrastructure (level of)
N Natural factors
G Gestation period
E Entrepreneurial skills
21. DETERMINATS OF LABOUR SUPPLY
USE ``2WHATSAPP``

LETTER POINT HOW?

W Wage rate
W Working condition
H Health condition
A Altitude
T Training Period
S Sex composition
A Age composition
P Population
P Political Climate

22. DETERMINATS OF LABOUR PRODUCTIVITY

USE``WE MEA2NT PIES``

LETTER POINT HOW?

W Working conditions
E Education and training
M Management and
supervision
E Entrepreneurial skills
A Altitude
N Natural ability
T Technology
P Political atmosphere
I Innovation and invention
E Experience
S Specialization
23. MERITS OF ECONOMIC GROWTH/SECTORS/ENTERPRISES/NATIONAL INCOME/FOREIGN
AID.
USE``WE SET BIRU QE``

LETTER POINT HOW?

W Widen consumer choice
E Employment opportunities
S Skills of labor
E Economic growth
T Technological development
B Balance of payment Position
I Infrastructural development
R Revenue to government
U Utilization of resources
Q Quality output
E Entrepreneurial skills

24. NEGATIVE IMPLICATIONS OF PRIVATE SECTORS

USE``CUWEDS``

LETTER POINT HOW?

C Consumer exploitation
U Unemployment
W Worsen income inequality
E Exhaustion of resource
D Duplication of economic
activities
S Social costs
25. DEMERITS OF ECONOMIC DEPENDENCE/FOREIGN AID.
USE ``WE PLUCK FEW``

LETTER POINT HOW?

W Worsen Balance of Payment
position
E Economic domination
P Political domination
L Laziness
U Under utilization of resources
C Cultural erosion
K Capital outflow
F Fluctuation of price
E External debt burden
W Worsen technological
unemployment.

26. OBJECTIVES OF MONETARY POLICY

USE`` 21 BEES``

LETTER POINT HOW?

I Inflation
I Influencing the level of
investment
B Balance of payment Position
E Employment opportunities
E Economic growth
S Stabilize foreign exchange
rates

27. DETERMINANTS OF PRICE ELASTICITY OF DEMAND

USE ``2PIC 2NATAL``

LETTER POINT HOW?

p Proportion of the consumer`s
income
P Possibility of post portion
I Income level of consumer
C Convenience level
N Necessity of the commodity
N Nature of the commodity
 A Availability of substitutes
T Time period
A Addiction of the commodity
L Level of advertisement

28. PROCESS OF COMPUTING COST OF LIVING

USE`` BBC PAAWA``

LETTER POINT HOW?

B Base year
B Basket of goods
C Collect prices for the basket
of goods
P Price index
A Average simple price index
A Attach weights to the basket
W Weighted price index
A Average weighted price index
(calculate)

29. DETERMINANTS OF DEMAND OF FOR MONEY.

USE``DIRTY KILDS``

LETTER POINT HOW?

D Degree of uncertainty
I Inflation rate
R Requirement for opening
accounts
T Transaction level
Y Income of consumer
K Knowledge of services
provided by banks
I Interest rate on financial
assets
L Literacy level
D Development of commercial
banks
S Speculation level
30. FUNCTIONS OF COMMERCIAL BANKS
USE``4A PIPE``

LETTER POINT HOW?

A Advancing loans
A Accepting deposits
A Acting as customers
A Acting as trustees
P Providing advice to investor
I Issuing letters of credit
P Providing easy means of
payment
E Exchanging currencies

31. PROCESS OF CREDIT CREATION

USE``RCL RCL PT``

LETTER POINT HOW?

R Receiving initial creation
C Calculating the cash ratio
L Lending out the balance
R Receiving an initial deposit by
another bank
C Calculating the cash ratio
L Lending out the balance
P Process continues
T Total credit credited

32. POSTIVE EFFECTS OF INFLATION

USE``GOD BE4 MIF``

LETTER POINT HOW?

G Government revenue
O Output levels increases
D Depression is set off
B Borrowers gain real terms
E Employment opportunities
E Encourage adoption of
import strategies
E Entrepreneurial skills
 E Economic Growth (increases)
M Mobility of labour
I Innovation and invention
F Forced savings

33. NEGATICVE EFFECTS OF INFLATION

USE ``PULLEY IS BIG at KFC``

LETTER POINT HOW?

P Planning is made difficult
U Unemployment
L Loss of confidence in local
currency
L Lenders tend to lose
E Encourage illegal activities.
Y Income inequality
I Investment discouraged
S Saving is discouraged
B Brain Drain
I Industrial unrest
G Government becomes
unpopular
K Capital outflow
F Fixed income earners lose
C Collapse of small firms.

34. EFFECTS OF UNEMPLOYMENT

USE`` BIC FED GRAPE``

LETTER POINT HOW?

B Brain drain
I Income inequality
C Crime rate
F Family instabilities
E Expenditure by government
increases
D Dependence burden
G Government revenue
reduces
R Rural urban Migration
A Aggregate demand reduces
 P Political tension
E Education is discouraged

35. FEATURES OF A GOOD DEVELOPMENT PLAN

USE ``3COS 2PIES``

LETTER POINT HOW?

C Comprehensiveness
C Consistence
C Compatible
O Optimal
S Sequential
P Proportional
P Politically acceptable
I Internationally relevant
E Economically feasible
S Socially relevant
S Simple or simplicity

36. DETERMINANTS OF STANDARDS OF LIVING

USE ``I 2EAT PINQ PESPI``.

LETTER POINT HOW?

I Income level
E Education and Training

E Level of Environment
degradation
A Availability of time for
leisure
T Taxation
P Price levels
I Infrastructural development
N Nature of goods
Q Quality of goods
P Political climate
E Employment level
p Saving level
S Social costs
I Income distribution
37. REASONS FOR PROTECTIONISM
USE ``PIG BIDS HER``

LETTER POINT HOW?

P Political domination
I Infant industries
G Government revenue
B B.O.P position
I Imported inflation
D Dumping
S Self-reliance
H Harmful products
E Employment opportunities
R Resources utilization.

38. CAUSES OF BUDGETARY DEFICITS/INCREASE IN GOVERNMENT EXPENDITURE

USE ``ECIDIC SOAP``

LETTER POINT HOW?

E Emergency funding
C Corruption
I Increasing government
expenditure international
commitments
D Defense expenditure
I Inflation
C Costs of infrastructural
development
S Settlement of public debts
O Over ambitious planning
A Administrative costs
P Population growth rates.
39. REASONS FOR PUBLIC BORROWING/FOREIGN AID
USE``MRS LEFT ICT``

LETTER POINT HOW

M Man power gap
R Revenue expenditure
S Saving investment gap
L Large sums of money quickly
E Effects of calamities
F Foreign Exchange gap
T Tax Revenue
I Inflation
C Countries relationships
T To achieve given level of
employment/Opportunities
B Borrowed funds (To repay
the borrowed funds)

40. CAUSES OF UNFAVOURABLE TERMS OF TRADE

USE ``WE MI FAIL P2``

LETTER POINT HOW?

W Weak bargaining
E Exportation of primary pdts
M Marketing planning
I Importation of expensive
F Falling prices
A Adoption of raw material
saving technology
I Increased substitution of
exports
L Low income elasticity of
demand
P Poor quality goods
P Protectionist policies.
41. REASONS FOR A NARROW TAX BASE
USE``TYBAU 2SLIP``

LETTER POINT HOW?

T Tax exemption
Y Incomes
B Base of tax (poor
identification)
A Accountability
U Unemployment
S Statistical data
S Subsistence sector
L Limited labour
I Infrastructure (poor)
P Political instability

42. Explain the factors that have affected the effectiveness of economic development
planning in Uganda.
USE ```3PIES FILAA```

LETTER POINT HOW?

P Political climate
P Public interference
P Public support
I Infrastructural development
E External influence
S Statistical data
F Funding
I Inflation
L Labour skills
A Accountability
A Ambitiousness

Conditions for successful planning

- When there is Political stability

- `` `` `` is limited political interference
- When there is high political support.
- In case there is a low rate of inflation.
 - When there is adequate skilled labour
- When there is well developed infrastructure
- When there is a low external influence
- When there is availability of statically data
- When there is availability of enough funding
- When there is high level of accountability
- When there is low degree of ambitiousness.

Challenges faced by commercial banks in Uganda

- Corruption and embezzlement of funds.

- Ignorance of the people about banking facilities.
- Limited or few credit worthy customers.
- Limited skills among bank officials.
- High levels of liquidity preference among the public.
- Poor infrastructure limits accessibility and operation of commercial banks in rural areas.
- High rates of inflation.
- Low levels of incomes
- Implementation of restrictive monetary policy by
COMPAILED
Mr. IVAN States Katongole