Economics

ECONOMICS

GENERAL OBJECTIVES

The aim of the Unified Tertiary Matriculation Examination (UTME) syllabus in Economics is to
prepare the candidates for the Board’s examination. It is designed to test their achievement of the
course objectives, which are to:

1. demonstrate sufficient knowledge and understanding of the basic concepts, tools and their
general applications to economic analysis;

2.

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identify and explain the basic structures, operations and roles of the various economic units
and institutions (national and international);

describe major economic activities – production, distribution and consumption;

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4.

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identify and appraise the basic and current economic problems of society;

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5. develop the competence to proffer solutions to economic problems identified.

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DETAILED SYLLABUS

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TOPICS/CONTENTS/NOTES OBJECTIVES

1. Economics as a science

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a. Basic Concepts: (i) compare various concepts in economics

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wants, scarcity, choice, scale of and their applications;
preference, opportunity cost, rationality,
(ii) interpret graphs/schedules in relation to
production, distribution, consumption.
the concepts;

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b.(i) Economic problems of:
(iii) identify economic problems;
what, how and for whom to produce and
efficiency of resource use. (iv) proffer solutions to economic problems
b.(ii)Application of PPF to solution of economic
problems.

Candidates should be able to:

2. Economic Systems
(i) compare the various economic systems;
a. Types and characteristics of free
(ii) apply the knowledge of economic
enterprise, centrally planned
systems to contemporary issues in
and mixed economies
Nigeria
b. Solutions to economic problems under
(iii) proffer solutions to economic problems
different systems
in different economic systems.
c. Contemporary issues in economic systems

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(economic reforms e.g deregulation,

banking sector consolidation, cash policy
reform).

3. Methods and Tools of Economic Analysis Candidates should be able to:

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a. Scientific Approach: (i) distinguish between the various forms of
i. inductive and deductive methods reasoning;

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ii. positive and normative reasoning (ii) apply these forms of reasoning to real life
situations;
b. Basic Tools

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i. tables, charts and graphs (iii) use the tools to interpret economic data;

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ii. measures of central tendency: mean, (iv) analyse economic data using the tools;

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median and mode, and their (v) assess the merits and demerits of the tools.

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applications.

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iii. measures of dispersion; variance,

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standard deviation, range and their

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applications;
iv. merits and demerits of the tools.

4. The Theory of Demand

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a. i. meaning and determinants of demand (i) identify the factors determining demand;
ii. demand schedules and curves (ii) interpret demand curves from demand
iii. the distinction between change in schedules;

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quantity demanded and change in
demand.
b. Types of demand:
Composite, derived, competitive and
joint demand:
c. Types, nature and determinants of
elasticity and their measurement -
price, income and cross elasticity of
demand:
d. Importance of elasticity of demand to
consumers, producers and government.
(iii) differentiate between change in quantity
demanded and change in demand;
(iv) compare the various types of demand and
their interrelationships;
(v) relate the determinants to the nature of
elasticity;
(vi) compute elasticities;
(vii) interpret elasticity coefficients in relation
to real life situations.

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5. The Theory of Consumer Behaviour Candidates should be able to:

a. Basic Concepts: (i) explain the various utility concepts;
i. utility (cardinal, ordinal, total (ii) apply the law of demand using the
average and marginal utilities) marginal utility analysis;
ii. indifference curve and budget (iii) use indifference curve and marginal
line. analyses to determine consumer

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equilibrium;
b. Diminishing marginal utility and the law (iv) relate the income and substitution effects;

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of demand. (v) apply consumer surplus to real life
c. Consumer equilibrium using the situations.
indifference curve and marginal

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analyses.

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d. Effects of shift in the budget line and the

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indifference curve.

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e. Consumer surplus and its applications.

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Candidates should be able to:

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6. The Theory of Supply (i) identify the factors determining

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a. i. Meaning and determinants of supply;
supply (ii) interpret supply curves from supply

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ii. Supply schedules and supply curves schedules;

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iii. the distinction between change in (iii) differentiate between change in quantity

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quantity supplied and change in supplied and change in supply;
supply (iv) compare the various types of supply and
b. Types of Supply: their interrelationships;

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Joint/complementary, competitive and (v) relate the determinants to the nature of
composite elasticity;
c. Elasticity of Supply: (vi) compute elasticity coefficients;
determinants, measurements, nature and (vii) interpret the coefficients in relation to real
applications life situations.

Candidates should be able to:

7. The Theory of Price Determination (i) explain the concepts of market and price;
a. The concepts of market and price (ii) examine the functions of the price system;
b. Functions of the price system (iii) evaluate the effects of government
c. i. Equilibrium price and quantity in interference with the price system;
product and factor markets (iv) differentiate between minimum and

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ii. Price legislation and its effects maximum price legislation;

d. The effects of changes in supply and (v) interpret the effects of changes in supply
demand on equilibrium price and and demand on equilibrium price and
quantity. quantity.

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Candidates should be able to:
8. The Theory of Production (i) relate TP, AP and MP with the law of

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a. Meaning and types of production variable proportion;
b. Concepts of production and their (ii) compare internal and external economies
interrelationships (TP, AP, MP and the of scale in production and their effects;

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law of variable proportion). (iii) identify the types of production functions

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c. Division of labour and specialization (iv) compare the different types of returns to

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d. Scale of Production: the scale and their implications;

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Internal and external economies of scale (v) determine the firm’s equilibrium position

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and their implications. using the isoquant-isocost and marginal

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e. Production functions and returns to analyses.

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scale (vi) identify the factors affecting productivity.
f. Producers’ equilibrium isoquant-isocost

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and marginal analyses.

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g. Factors affecting productivity.

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Candidates should be able to:
9. Theory of Costs and Revenue (i) explain the various cost concepts
a. The concepts of cost: (ii) differentiate between accountants’ and

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Fixed, Variable, Total Average and economists’ notions of costs
Marginal (iii) interpret the short-run and long-run costs
b. The concepts of revenue: Total, Average curves
and Marginal revenue; (iv) establish the relationship between marginal
c. Accountants’ and Economists’ notions cost and supply curve.
of cost (v) explain the various revenue concepts.
d. Short-run and long-run costs
e. The marginal cost and the supply curve
of firm.
Candidates should be able to:

10. Market Structures (i) analyse the assumptions and

characteristics of a perfectly competitive
a. Perfectly competitive market: market;

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i. Assumptions and characteristics; (ii) differentiate between short-run and long-

ii. Short-run and long-run equilibrium run equilibrium of a perfectly competitive
of a perfect competitor; firm;
(iii) analyse the assumptions and
b. Imperfect Market: characteristics of imperfect markets;
i. Pure monopoly, discriminatory (iv) differentiate between the short-run and
monopoly and monopolistic long-run equilibria of imperfectly
competition. competitive firms;
ii. Short-run and long-run equilibrium (v) establish the conditions for the break-

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positions. even/shut down of firms.

c. Break-even/shut-down analysis in the

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various markets.
Candidates should be able to:
11. National Income
(i) identify the major concepts in national

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a. The Concepts of GNP, GDP, NI, NNP income;
b. National Income measurements and (ii) compare the different ways of measuring

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their problems national income;
c. Uses and limitations of national income (iii) examine their problems;

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estimates (iv) assess the uses and limitations of

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d. The circular flow of income (two and national income estimates;

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three-sector models) (v) interpret the circular flow of income
e. The concepts of consumption, using the two and three-sector models;

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investment and savings (vi) calculate the various multipliers;
f. The multiplier and it effects (vii) evaluate their effects on equilibrium

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g. Elementary theory of income national income;
determination and equilibrium national (viii) explain the concepts of consumption,

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income. investment and savings.

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Candidates should be able to:
12. Money and Inflation

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(i) explain between the types,
a. Types, characteristics and functions of characteristics and functions of money;
money (ii) identify the factors affecting the
b. Demand for money and the supply of demand for and the supply of money;

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money (iii) examine the relationship between the
c. Quantity Theory of money (Fisher value of money and the price level;
equation) (iv) identify the components in the quantity
d. The value of money and the price level theory of money;
e. Inflation: Types, measurements, effects (v) examine the causes and effects of
and control inflation;
f. Deflation: Measurements, effects and (vi) calculate the consumer price index;
control. (vii) interpret the consumer price index;
(viii) examine ways of controlling inflation.
(ix) examine the causes, measurement,
effects and control of deflation.

Candidates should be able to:

13. Financial Institutions
(i) identify the types and functions of
a. Types and functions of financial financial institutions;
institutions (traditional, central bank, (ii) explain the roles of financial institutions

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mortgage banks, merchant banks, in economic development;

insurance companies, building (iii) distinguish between the money and
societies); capital markets;
b. The role of financial institutions in (iv) identify the various financial sector
economic development; regulators and their functions;
c. Money and capital markets (v) explain the money creation process and
d. Financial sector regulations its challenges;
e. Deposit money banks and the creation (vi) examine the various monetary policy
of money instruments and their effects;

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f. Monetary policy and its instruments (vii) appraise the challenges facing the
g. Challenges facing financial institutions financial institutions in Nigeria.
in Nigeria.

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Candidates should be able to:

14. Public Finance (i) identify the objectives of public finance;

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(ii) explain fiscal policy and its instruments;
a. Meaning and objectives (iii) compare the various sources of

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b. Fiscal policy and its instruments government revenue;
c. Sources of government revenue (taxes (iv) analyse the principles of taxation;

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royalties, rents, grants and aids) (v) analyse the incidence of taxation and its

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d. Principles of taxation effects;

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e. Tax incidence and its effects (vi) examine the effects of public
f. The effects of public expenditure expenditure on the economy;

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g. Government budget and public debts (vii) examine the types and effects of
h. Revenue allocation and resource control budgets;

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(viii) highlight the criteria for revenue
in Nigeria.
allocation in Nigeria and their impact.

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Candidates should be able to:

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15. Economic Growth and Development
(i) distinguish between economic growth

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a. Meaning and scope and development;

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b. Indicators of growth and development (ii) highlight the indicators of growth and
c. Factors affecting growth and development;
development (iii) identify the factors affecting growth and

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d. Problems of development in Nigeria development;
e. Development planning in Nigeria. (iv) examine the problems of development in
Nigeria;
(v) examine the role of planning in
development;

Candidates should be able to:

16. Agriculture in Nigeria
(i) identify the types and features of
a. Types and features; agriculture;
b. The role of agriculture in economic (ii) examine the characteristics and problems
development; of agriculture;
c. Problems of agriculture; (iii) assess the role of agriculture in economic
d. Agricultural policies and their effects; development;
e. Instability in agricultural incomes (iv) appraise agricultural policies in Nigeria;
(causes, effects and solutions). (v) evaluate the causes and effects of
instability in agricultural incomes.

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17. Industry and Industrialization Candidates should be able to:

a. Concepts and effects of location and (i) differentiate between location and
localization of industry in Nigeria; localization of industry;
b. Strategies and Industrialization in (ii) identify the factors influencing the
Nigeria; location and localization of industry;
c. Industrialization and economic (iii) examine the problems of
industrialization;
development in Nigeria;
(iv) appraise some industrialization

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d. Funding and management of business strategies;
(v) examine the role of industry in economic
organization;
development.

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e. Factors determining the size of firms.

18. Natural Resources and the Nigerian Candidates should be able to:

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Economy
(i) trace the development of the major

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a. Development of major natural resources natural resources in Nigeria;
(petroleum, gold, diamond, timber etc); (ii) assess the contribution of the oil and the

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b. Contributions of the oil and the non-oil non-oil sectors to the Nigerian economy;

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sectors to the Nigerian economy; (iii) establish the linkages between the natural

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c. Linkage effects; resources and other sectors;
d. Upstream/downstream of the oil sector; (iv) analyse the environmental effects of

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e. The role of NNPC and OPEC in the oil exploitation activities in Nigeria;
sector; (v) distinguish between the upstream and

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f. Challenges facing natural resources downstream activities in the oil sector ;
exploitation. (vi) examine the roles of NNPC and OPEC in

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the oil sector;
(vii) suggest ways of controlling the effects of

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natural resources exploitation.

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19. Business Organizations Candidates should be able to:

a. Private enterprises (e.g. sole- (i) compare the types and basic features of

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proprietorship, private business organization;
partnership, limited liability companies (ii) assess the financing and management
and cooperative societies) problems of business organizations;
b. Problems of private enterprises; (iii) identify the features of public enterprises;
c. Public enterprises and their problems; (iv) identify the factors determining the size
d. Funding and management of business of firms;
organizations; (v) differentiate between privatization and
e. Factors determining the size of firms; commercialization;
f. Privatization and Commercialization as (vi) compare the advantages and
solutions to the problems of public disadvantages of privatization and
enterprises. commercialization;

20. Population Candidates should be able to:

a. Meaning and theories; (i) analyse some population theories:

b. Census: importance and problems. (ii) examine the relevance of the theories to
Nigeria;

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c. Size and growth: over-population, under- (iii) examine the uses and limitations of census
population and optimum population. data;
d. Structure and distribution; (iv) identify determinants of the size, composition
e. Population policy and economic and growth of population;
development. (v) analyse the structure and distribution of
population;
(vi) appraise government population policy in
Nigeria.

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21. International Trade Candidates should be able to:
a. Meaning and basis for international trade (i) examine the basis for international trade.

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(absolute and comparative costs etc.) (ii) differentiate between absolute and
b. Balance of trade and balance of comparative advantages;
payments: problems and corrective (iii) distinguish between balance of trade and
measures; balance of payments and their corrective

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c. Composition and direction of Nigeria’s measures;
foreign trade; (iv) highlight the problems of balance of payments

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d. Exchange rate: meaning, types and and their corrective measures;
determination. (v) examine the composition and direction of

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Nigeria’s foreign trade;

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(vi) identify the types of exchange rates;

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(vii) examine how exchange rates are determined.

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Candidates should be able to:
22. International Economic Organizations

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(i) identify the various economic organizations
Roles and relevance of international

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and their functions;
organizations e.g. ECOWAS, AU, EU, ECA,
(vii) evaluate their relevance to the Nigerian
IMF, EEC, OECD, World Bank, IBRD,

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economy.
WTO, ADB and UNCTAD etc. to Nigeria.

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Candidates should be able to:
23. Factors of Production and their Theories
(i) identify the types; features and rewards of
a. Types, features and rewards; factors of productions;

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b. Determination of wages, interest and (ii) analyse the determination of wages, interest
profits; and profits;
c. Theories: marginal productivity theory (iii) interpret the marginal productivity of liquidity
of wages and liquidity preference preference theories;
theory; (iv) examine factors mobility and efficiency;
d. Factor mobility and efficiency; (v) examine the types and causes of
e. Unemployment and its solutions unemployment in Nigeria;
(vi) suggest solutions to unemployment in Nigeria.

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RECOMMENDED TEXTS

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

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Falodun, A.B. et al (1997) Round-up Economics, Lagos: Longman

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Kountsoyiannis, A. (1979) Modern Microeconomics, London: Macmillan

Lipsey, R.G. (1997) An Introduction to Positive Economics, Oxford: Oxford University Press.

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Samuelson, P and Nordhaus, W. (1989) Economics, Singapore: McGraw-Hill

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Udu E and Agu G.A. (2005) New System Economics: a Senior Secondary Course, Ibadan: Africana FIRST

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Publishers Ltd.

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Wannacott and Wannacott (1979) Economics, New York: McGraw-Hill.

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Brownson-oton Richard (2010) What is Micro-Economics? Niky Printing and Publishing coy.

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Brownson-oton Richard (2010) What is Macro-Economics? Niky Printing and Publishing coy.

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