Economics Syllabus (SHS)

MIN IST RY OF E D U CATION SCIE NCE A ND SPORTS
Republic of Ghana
TEACHING SYLLABUS FOR ECONOMICS

(SENIOR HIGH SCHOOL 2- 4)
Enquiries and comments on this syllabus should be addressed to:
The Director
Curriculum Research and Development Division (CRDD)
P. O. Box 2739
Accra, Ghana
Tel: 021- 683668

021-683651
September, 2008
RATIONALE FOR TEACHING ECONOMICS
People as well as countries have the need for more and better quality goods and services such as better food, clothing, housing, schooling, hospital care and
entertainment. These goods and services can only be obtained by the use of resources such as Land, Labour, Capital and Entrepreneurship which are scarce
relative to the demand for them, and which, therefore, need to be managed. Economics, indeed, is the study of the management of relatively scarce resources for
satisfying the needs of individuals, organizations and countries.
As a practical subject, Economics helps to provide an effective framework for individuals, firms and governments to identify their basic economic problems, and
make necessary decisions and policies for raising the living standards of people and societies. Indeed, the study of Economics helps the individual to develop skills
for managing his/her economic resources efficiently both in the family and in business. The course further equips students with the basic tools required for further
studies in the subject.
GENERAL AIMS
The syllabus is designed to help students to:
1. acquire basic economic concepts, principles and tools for economic analysis.
2. acquire greater understanding of the roles of consumers, businesses and governments in economic development.
3. develop the ability to analyze the structure, and functions of commercial, agricultural, industrial and financial institutions.
4. appreciate the economic development policies and strategies of the government and their inherent problems.
5. understand the relationship between the Ghanaian economy and external economies in respect of trade and integration.
SCOPE OF CONTENT
The course covers the concepts and general principles of economics at both the micro and macro levels. It provides adequate knowledge for economic
deliberations and analysis of economic issues by students who will terminate their education at the SSS level. It also provides a sound foundation for those who
will wish to further their studies in Economics.
PRE-REQUISITE SKILLS AND ALLIED SUBJECTS
Core Mathematics is a necessary pre-requisite for the study of Economics. For students who will undertake advanced studies, Elective Mathematics will be very
useful. Also, subjects such as Geography, Agriculture and Social Studies enhance the study of Economics and they provide a useful background and deeper
insights.
ORGANIZATION OF THE SYLLABUS
The syllabus has been designed to cover three years of Senior High Secondary School Programme. Each year‟s work is divided into a number of sections and a
number of units for each section.
The syllabus has been structured into a total of (18) main sections as follows:
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YEAR 2
SECTIONS 1: Fundamental Concepts of Economics.
2: Factors of Production (Kinds of Resources or Inputs).
3: Economic Systems (Economies).
4: Price Theory (Demand).
5: Price Theory (Supply).
YEAR 3
SECTIONS 1: The Theory of Production
2: Prices of Factors of Production.
3: The Theory of Costs and Revenue.
4: Distributive Trade.
5: The Theory of Consumer Behaviour.
6: The National Income Accounting and Determination.
YEAR 4
SECTIONS 1: Agriculture and Industry.
2: Money and Financial Institutions.
3: Public Finance.
4: International Trade and Economic Development.
5: Economic Cooperation.
6: Economic Development Planning.
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The Sections and Unit Topics for the three-year course are as follows:
STRUCTURE AND ORGANIZATION OF THE SYLLABUS
YEAR 2 YEAR 3 YEAR 4
SECTION 1: FUNDAMENTAL CONCEPTS OF SECTION 1: THE THEORY OF PRODUCTION SECTION 1: AGRICULTURE AND INDUSTRY
ECONOMICS
Unit 1: Production and Productivity Unit 1: Agriculture
Unit 1: Introductory Concepts in Economics Unit 2: Time Periods in Production; Returns to an Unit 2: Industrialisation
Unit 2: Scope of Economic Activity Input
Unit 3: Tools of Economic Analysis Unit 3: Long Run Production Theory
Unit 4: Location and Localisation (Concentration)
of Industries
Unit 5: Specialization and Division of Labour
Unit 6: Labour Intensive & Capital Intensive
Methods of Production
Unit 7: The Concept of Appropriate Technology in
the LDCs
SECTION 2: FACTORS OF PRODUCTION SECTION 2: PRICES OF FACTORS OF SECTION 2: MONEY AND FINANCIAL
(KINDS OF RESOURCES OR PRODUCTION INSTITUTIONS
INPUTS)
Unit 1: Factors Determining Demand for a Factor Unit 1: Money
Unit 1: Land of Production Unit 2: Characteristics of Good Money;
Unit 2: Labour Unit 2: Factors Determining Supply of a Factor of Functions; and Forms on Money in a
Unit 3: Trade Unions and Other Labour Concepts. Production Modern Economy
Unit 4: Population Unit 3: Supply of and Demand for Money;
Unit 5: Capital Meaning and Determinants
Unit 6: Entrepreneurship/Enterprise Unit 4: The Value of Money
Unit 5: Financial Institutions
Unit 6: Banking Institutions
Unit 7: Inflation-Meaning; Types; Causes and
Control.
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SECTION 3: ECONOMIC SYSTEMS SECTION 3: THE THEORY OF COSTS AND SECTION 3: PUBLIC FINANCE
(ECONOMIES) REVENUE
Unit 1: Government Activities
Unit 1: Types; Functions; Advantages and Unit 1: The Concept of Cost of Production Unit 2: Categories of Government Expenditures
Disadvantages Unit 2: Cost Concepts in Production Unit 3: Effects of Government Expenditure
Unit 2: Unemployment Unit 3: Economies and Diseconomies of Scale Unit 4: Public/Government Revenue
Unit 4: Revenue Concepts Unit 5: Taxation
Unit 5: The Concept of a Market and Market Unit 6: The National Budget
Structures Unit 7: The National Debt
Unit 6: Objectives of Firms and the Concepts of
an Equilibrium of a firm and of an Industry
Unit 7: Price Discrimination
SECTION 4: PRICE THEORY (DEMAND) SECTION 4: DISTRIBUTIVE TRADE SECTION 4: INTERNATIONAL TRADE AND
ECONOMIC DEVELOPMENT
Unit 1: The Concept of Price and Importance of Unit 1: Methods of Distribution
Prices Unit 2: Agencies and Channels of Distribution Unit 1: Domestic Trade and International Trade:
Unit 2: The Concept of Demand and the Law of Unit 3: Problems of Internal Distribution Differences
Demand Unit 2: Reasons for International Trade
Unit 3: Types of Demand Unit 3: Some Concepts of International Trade
Unit 4: Factors Determining Demand Unit 4: Problems of the LDCs and Their
Unit 5: The Concept and Types of Elasticity of Solutions
Demand Unit 5: Arguments Against and For Free Trade
Unit 6: Factors Affecting Own Price Elasticity of Unit 6: Exchange Rates and their Determinants
Demand
SECTION 5: PRICE THEORY (SUPPLY) SECTION 5: THE THEORY OF CONSUMER SECTION 5: ECONOMIC COOPERATION
BEHAVIOUR
Unit 1: The Concept of Supply and the Law of Unit 1: Different Forms of Economic Cooperation
Supply Unit 1: The Utility Concepts and the Law of Unit 2: Advantages and Problems of Economic
Unit 2: Types of Supply Diminishing Marginal Utility Cooperation
Unit 3: Factors Determining Supply Unit 2: The Concept of an Equilibrium of a Unit 3: International Economic Organisations
Unit 4: The Concept of Elasticity of Supply and its Consumer
Importance Unit 3: The Effects of A Change in Price on
Unit 5: The Concept of an Equilibrium Price (price Consumer Equilibrium and Consumer
Determination) Surplus.
Unit 6: The Algebraic Equations of Demand and Unit 4: Substitution and Income Effects
Supply
Unit 7: Price Controls ( Price Regulations)
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SECTION 6: THE NATIONAL INCOME

ACCOUNTING AND DETERMINATION SECTION 6: ECONOMIC DEVELOPMENT
PLANNING
Unit 1: Concept and Measurement
Unit 2: Related Concepts of National Income Unit 1: Economic Development Planning
Unit 3: Level of Living and Standard of Living
Unit 4: Uses and Limitations of National Income
Unit 5: Aggregate Expenditure and Equilibrium
National Income
Unit 6: The Multiplier Concept and Measurement
Data
Unit 7: The Concept of Economic Growth and
Economic Development
TIME ALLOCATION
Economics is allocated 7 periods a week, with 40 minutes for each period. Extra time should, however, be made available to adequately complete the syllabus in
good time.
SUGGESTIONS FOR TEACHING THE SYLLABUS

This syllabus is designed to embody concepts, principle and their applications in Economics. Teachers‟ attention is drawn to the quantitative aspects of the
syllabus and the inclusion of new topics on contemporary economic issues.
General Objectives
General Objectives have been listed at the beginning of each section. Read them very carefully before you start teaching the section. After teaching all the units
of the section, go back and read the objectives again to be sure you have covered them adequately in the course of your teaching.
Sections and Units

The syllabus has been planned on the basis of Sections and Units. Each year‟s work consists of a number of sections and a number of units for each section. A
unit consists of a related and homogeneous body of knowledge and skills.
The syllabus is structured in five columns: Unit, Specific Objectives, Content, Teaching and Learning Activities and Evaluation. A description of the contents of
each column is as follows:
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Column 1: Unit
The units of column 1 are divisions of the major topics of the section. Teachers are advised to follow the unit topics sequentially as presented in the syllabus.
However, teachers have the option to skip to another unit before coming back to the unit in the sequence if that encourages effective teaching and learning.
Column 2: Specific Objectives

Column 2 shows the specific objectives for each unit. The specific objectives are numbered with three digits such as 1.1.2. These numbers are referred to as
“Syllabus Reference Numbers”. The first digit refers to the section; the second digit refers to the unit, while the third digit refers to the rank order of the specific
objective.
The specific objectives are student-oriented which indicates what the student will achieve at the end of each unit.
Column 3: Content
The content in column 3 presents a selected body of information that you will need to use in teaching the particular unit.
Column 4: Teaching and Learning Activities (T/L)

Teaching and Learning Activities (T/L) that will ensure maximum student participation in the lessons are presented in Column 4. The teacher must emphasize
participatory teaching and learning. This implies that students should be encouraged to acquire the habit of analytical thinking, problem-solving attitudes and the
capacity for applying their knowledge in dealing with economic issues both in and out of school.
The teacher is also encouraged to adopt other teaching and learning activities that will optimize student learning.
Column 5: Evaluation
Suggestions and exercises for evaluating the lessons of each unit are indicated in Column 5. Evaluation exercises take the form of oral questions, quizzes, class
assignments, essays, structured questions, data-response questions, project work, terminal tests, etc.
PROFILE DIMENSIONS
A central aspect of this syllabus is the concept of profile dimensions that should be the basis for instruction and assessment. A „dimension‟ is a psychological unit
for describing a particular learning behavior. More than one dimension constitutes a profile of dimensions. A specific objective such as follows: “The student will
be able to describe…..” etc., contains an action verb “describe”, that indicates what the student will be able to do after teaching has taken place. Being able to
“describe” something after the instruction has been completed means that the student has acquired “knowledge”. Being able to explain, summarize, give
examples, etc. means that the student has understood the lesson taught. Similarly, being able to develop, plan, construct, etc. means that the student can “apply”
the knowledge acquired in some new context. You will note that each of the specific objectives in this syllabus contains an “action verb” that describes the
behavior the student will be able to demonstrate after the instruction. “Knowledge”, “Application”, etc. are dimensions that should be the prime focus of teaching
and learning in schools. Instruction in most cases has tended to stress knowledge acquisition to the detriment of other higher level behaviours such as application,
analysis, etc. The importance of learning is to enable the student to be able to apply knowledge, develop analytical skills and we use knowledge in a variety of
ways. Each action (verb) indicates the underlying profile dimension of each particular specific objective. Read each objective carefully to know the profile
dimension toward which you have to teach.
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DEFINITION OF PROFILE DIMENSIONS
As already stated, profile dimensions describe the underlying behaviours for teaching, learning and assessment. In Economics the two profile dimensions that
have been specified for teaching, learning and testing are:
Knowledge and Understanding 55%

Application of Knowledge 45%
Each of the dimensions has been given a percentage weight that should be reflected in teaching, learning and testing. The weights, indicated on the right of the
dimensions, show the relative emphasis that the teacher should give in the teaching, learning and testing processes. The focus of this syllabus is to get students
not only to acquire knowledge but also to understand what they have learnt and apply them practically.
The explanation and key words involved in each of the dimensions are as follows:
Knowledge and Understanding (KU)
Knowledge The ability to: remember, recall, identify, define, describe, list, name, match, state principles, facts and concepts. Knowledge is simply the
ability to remember or recall material already learned and constitutes the lowest level of learning.
Understanding The ability to explain, summarize, translate, rewrite, paraphrase, give examples, generalize, estimate or predict consequences based
upon a trend. Understanding is generally the ability to grasp the meaning of some material that may be verbal, pictorial, or symbolic.
Application of Knowledge (AK)
The ability to use knowledge or apply knowledge, as implied in this syllabus, has a number of learning/behavior levels. These levels include application, analysis,
synthesis, and evaluation. These may be considered and taught separately, paying attention to reflect each of them equally in your teaching. The dimension
“Application of Knowledge” is a summary dimension for all four learning levels. Details of each of the four sub-levels are as follows:
Application The ability to apply rules, methods, principles, theories, etc. to concrete situations that are new and unfamiliar. It also involves the ability to
produce, solve, operate, plan, demonstrate, discover, etc.
Analysis The ability to break down a piece of material into its component parts; to differentiate, compare, distinguish, outline, separate, identify significant
points, etc., recognize unstated assumptions and logical fallacies, recognize inferences from facts, etc. Analytical ability underlies discriminatory
thinking.
Synthesis The ability to put parts together to form a new whole. It involves the ability to combine, compile, compose, devise, plan, revise, design,
organize, create, and generate new ideas and solutions. Ability to synthesize underlies convergent thinking.
Evaluation The ability to appraise, compare features of different things and make comments or judgement, contrast, criticize, justify, support, discuss,
conclude, make recommendations, etc. Evaluation refers to the ability to judge the worth or value of some material based on some criteria.
You will note from the above that evaluation is generally the highest form of thinking and learning skill and is therefore the most important behavior. This accounts
for the poor performance of students and people generally on tasks that call for evaluative thinking. Give your students lots of chances to do evaluative thinking.
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FORM OF ASSESSMENT
It must be emphasized again that it is important that both instruction and assessment be based on the profile dimensions of the subject. In developing assessment
procedures, try to select specific objectives in such a way that you will be able to assess a representative sample of the syllabus objectives. Each specific
objective in the syllabus is considered a criterion to be achieved by the student. When you develop a test that consists of items or questions that are based on a
representative sample of the specific objectives taught, the test is referred to as a “Criterion-Referenced Test”. In many cases, a teacher cannot test all the
objectives taught in a term, in a year, etc. The assessment procedure you use i.e. class tests, home work, projects, etc. must be developed in such a way that it
will consist of a sample of the important objectives taught over a period.
The example below shows an examination consisting of two papers, Paper 1 and Paper 2. Continuous Assessment has been added to the structure. Paper 1 will
usually be an objective-type paper; Paper 2 will consist of data-response questions and structured questions; and Continuous Assessment will consist of an
aggregation of marks over a number of assignments. The distribution of marks for the objective test items and the essay type questions in the two papers should
be in line with the weights of the profile dimensions already indicated and as shown in the last column of the table below.
The West African Examinations Council (WAEC) generally sets about 60 objective test items at the SSSCE. Try to emulate this by developing an objective test
paper that consists of 60 items. Paper 2 could consist of some data-response questions, and structured questions. In general, let students answer one of the
data-questions (questions 1 and 2) in section 4 and four questions from a list of 3 – 10 questions.
In the sample assessment structure presented below, Paper 1 is marked out of 60; paper 2 is marked out of 100, and Continuous Assessment is marked out of
100, giving a total of 260 marks. Depending upon the school‟s examination and marking systems, you could use a total mark convenient to the teacher and the
school. Bear in mind of course, that using a different total mark will change the mark allocations for the test papers, etc.
The last row shows the weight of the marks allocated to each of the three test components. The two papers and Continuous Assessment are weighted differently.
Paper 1, the objective test paper is weighted 25%. Paper 2 is a more intellectually demanding paper and is therefore weighted more than the objective test paper.
Paper 2 is designed to test knowledge and understanding as well as application of knowledge. Paper 2 and the Continuous Assessment are weighted 45% and
30% respectively.
Distribution Of Examination Paper Weights And Marks

Continuous % Weight of
Dimensions Paper 1 Paper 2 Assessment Total Marks Dimension
Knowledge and
Understanding 40 50 50 140 55
Application of
Knowledge 20 50 50 120 45
Practical Skills - - - - -
Total Marks 60 100 100 260 -
% Contribution of
Paper 25 45 30 - 100
You will note that Paper 1 has a contribution of 25% to the total marks; Paper 2 has a contribution of 45% to the total marks; and Continuous Assessment has a
contribution of 30% to the total marks. The numbers in the cells indicate the marks to be allocated to the items/questions that test each of the dimensions within
the respective papers.
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The last but one column shows the total marks allocated to each of the dimensions. The numbers in this column are additions of the numbers in the cells and they
agree with the profile dimension weights indicated in the last column. Of the total marks of 260, the 140 marks for Knowledge and Understanding is equivalent to
55%. The 120 marks for “Application” is equivalent to 45% of the total marks.
Because of the large weight on Knowledge and Understanding, Continuous Assessment should be used to test the greater part of this dimension.
Item Bank
Obviously the structure of assessment recommended in this syllabus will need a lot of work on the part of the teacher. In preparation for setting examination
papers, try to develop an item bank. The term “item bank” is a general term for a pool of objective items, a pool of essay structured questions and data-response
questions. As you teach the subject, try to write objective test items, structured questions and data-response questions to fit selected specific objectives which you
consider important to be tested. Randomly select from the item bank to compose the test papers. Select with replacement. This means, as items/ questions are
selected for testing, new ones have to be written to replace those items/questions already used in examinations. Items already needed in examinations may also
be modified and stored in the item bank.
An important issue in the preparation for a major examination such as the SSSCE, is the issue of test wiseness. To be testwise means that the student knows the
mechanics for taking a test. These mechanics include writing your index number and other particulars accurately and quickly on the answer paper; reading all
questions before selecting the best questions to answer; apportioning equal time to each question or spending more time on questions that carry more marks;
making notes on each question attempted before writing the answer, leaving extra time to read over one‟s work; finally checking to see that the personal
particulars supplied on the answer sheet are accurate. Some good students sometimes fail to do well in major examinations because of weakness in the
mechanics of test taking; because they are not test wise. Take your final year students through these necessary mechanics so that their performance in major
examinations may not be flawed by the slightest weakness in test taking.
GRADING PROCEDURE
To improve assessment and grading and also introduce uniformity in schools, it is recommended that schools adopt the following grade boundaries for assigning
grades on students‟ test results.
Grade A: 80 – 100% - Excellent

Grade B: 70 – 79% - Very Good
Grade C: 60 – 69% - Good
Grade D: 45 – 59% - Pass
Grade E: 35 – 44% - Weak
Grade F: 34% and below - Very Weak
In marking your class examination scripts, it is very important that you develop a marking scheme. A marking scheme, as you are aware, consists of the points for
the best answer you expect for each question, and the marks allocated for each point raised by the student as well as the total marks for the question. For
instance, if a question carries 20 marks, and you expect 6 points in the best answer, you could allocate 3 marks or part of it, depending upon the quality of the
point raised by the student, totaling 18 marks, and then give the remaining 2 marks or part of it for organization of answer. For objective test papers you may
develop an answer key to speed up the marking.
In assigning grades to students‟ test results, you may apply the above grade boundaries and the descriptions which indicate the meaning of each grade. The
grade boundaries are also referred to as grade cut-off scores. For instance, the grade cut-off score for a B grade is 70% in the example. When you adopt a fixed
cut-off score grading system as in this example, you are using the criterion-reference grading system. By this system a student must make a specified score to be
awarded the requisite grade. This system of grading challenges students to study harder to earn better grades. It is hence a very useful system for grading
achievement tests.
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GUIDELINES FOR CONTINUOUS ASSESSMENT
The arrangements for Continuous Assessment may be grouped in categories as follows: Projects, Class Tests, Homework and Terminal Test.
1. Projects: These are tasks assigned to students to be completed over an extended time.
These will include the following:
i) visitations to commercial, agricultural, industrial and financial institutions;

ii) Investigative study.
A report must be written for each project undertaken.
2. Class Tests: These will essentially consist of written assignments covering topics/units completed at some specific
Period within the term.
3. Homework: This is an assignment to be completed within a day or a couple of days. Homework may consist of
essays, summaries, and other problems to be solved.
4. Terminal Test: A terminal test is a summative evaluation method for assessing the subject content, skills and the
profile dimensions taught. In developing the terminal test, please ensure that the test will have high content validity by
adopting the criterion-referenced testing approach we have discussed already.
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LIST OF MAIN TOPICS ARRANGED YEAR BY YEAR
YEAR 2
SECTION 1
FUNDAMENTAL CONCEPTS IN ECONOMICS
UNIT 1: Introductory Concepts: Scarcity; Choice; Including Scale of Preference and Opportunity Cost; Definition of Economics.
UNIT 2: Scope of Economic Activity – Production and Distribution

 Classification of Economic Activity – Primary; Secondary; Tertiary and Their Inter-relationships.
 Contribution of the Sectors in Terms of Output/Income; Employment; Savings and Foreign Exchange.
UNIT 3: Tools of Economic Analysis – Tables; Graphs and Charts (Bars; Line; Pie Charts and Pictograms)
 Some Basic Statistical Measures: Arithmetic Mean; Median and Mode.
SECTION 2
FACTORS OF PRODUCTION (KINDS OF RESOURCES OR INPUTS)
UNIT 1: Land - Meaning; Characteristics; Importance and Problems of Land.
UNIT 2: Labour - Meaning (Mental and Physical Effort); Types (Skilled and Unskilled); Difference Between the Labour Force and Supply of Labour; Factors
Affecting Supply of Labour; Efficiency of Labour and Its Determinants.
UNIT 3: Trade Unions and Other Related Concepts:- Employers Associations, Government Policies and Their Effects on Labour Efficiency and Wage Rates;
Mobility of Labour (Geographical and Occupational Mobility – Meaning and Factors)
UNIT 4: Population – Size and Measurement of Population (Census); Purposes and Problems of a Census; The Growth of Population (Birth Rate, Death Rate
and Natural Growth Rate, Net Migration) Demographic Transition Theory; Meaning of Youthful and Ageing Population; Causes and Effects on the
Economy. Malthusian Principle of Population Growth; Underpopulation, Optimum Population and Overpopulation.
Structure of Population (Age, Sex and Occupational Structure; Geographical Distribution of Population); Internal Migration (Rural-Urban, Rural – Rural,
Urban – Urban, Urban – Rural); Causes, Problems and Remedies.
UNIT 5: Capital – Meaning, Types; Importance and Characteristics of Capital Assets; Sources of Capital: Internal:- Personal Savings, Government Savings;
Business Savings, Loans. External:- Foreign Aid (Grants, Loans, Technical Aid); Portfolio Investments; Direct Investments; Joint Ventures and Loans.
Reasons for Shortage of Capital in Less Developed Countries (LDCs).
UNIT 6: Entrepreneurship/Enterprise - Meaning; Importance (i.e. Functions); Reasons for the Shortage of Entrepreneurship in the LDCs; Reasons for Government
Entrepreneurship; Problems of Government as an Entrepreneur in the LDCs. Types of Business Units for Mobilizing Resources (Sole Proprietorship;
Partnership etc.); Features; Advantages and Disadvantages. Reasons for the Establishment and Failure of SOEs; Solutions to Their Problems; Including
Privatization (Divestiture) and Commercialisation.
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SECTION 3
ECONOMIC SYSTEMS (ECONOMIES)
UNIT 1: Meaning; Criteria for Identifying Economic Systems; Types; Functions of Economic Systems (What to Produce; How to Produce etc); How the Functions
are Performed Under the Various Economic Systems. Advantages and Disadvantages of the Various Economic Systems.
UNIT 2: Unemployment and Underemployment – Meanings; Types of Unemployment (Structural; Frictional Seasonal; etc); Causes and Remedies.
SECTION 4
PRICE THEORY (DEMAND)

UNIT 1: i) Definition of Price; Importance of Prices to Producers and Consumers in Decision Making; ii) Other Methods of Determining Prices –
Bargaining/Haggling/Higgling, Auctioning; Tender; iii) Determination of Prices of Goods and Services Under Free
and Regulated Markets.
UNIT 2: Demand: Meaning of Demand and the Law of Demand; Demand Schedule and Curve;
UNIT 3: Types of Demand: Derived Demand; Composite Demand; Joint/Complementary Demand; Competitive Demand.
UNIT 4: Factors Determining the Demand for Goods and Services:-

(i) Price, (ii) Demand Conditions - (Prices of Other Commodities; Income; Tastes; Price Expectations etc.). The Difference Between a Change in
Demand and a Change in Quantity Demanded; Exceptional Demand Curves; Reasons for Exceptional Demand Curves.
UNIT 5: The Concept of Elasticity of Demand. Types of Elasticity of Demand and Their Measurements: i) Price Elasticity of Demand, ii) Income Elasticity of
Demand, iii) Cross Elasticity of Demand
UNIT 6: Factors Affecting Price Elasticity of Demand. Importance of the Various Types of Elasticity to Consumers, Producers and the Government.
SECTION 5
PRICE THEORY (SUPPLY)

UNIT 1: Supply: Meaning of Supply and the Law of Supply; Supply Schedule and Curves; Exceptional Supply Curves; Reasons for Exceptional Supply Curves.
UNIT 2: Types of Supply – Composite, Complementary/Joint, Competitive.
UNIT 3: Factors Determining Supply: i) Price; ii) Conditions of Supply; (Input Prices, Technology; Prices of Other Commodities; Climatic Factors etc.) The
Difference Between a Change In Supply and a Change in Quantity Supplied.
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UNIT 4: Elasticity of Supply; Concept and Measurement; Factors Affecting Price Elasticity of Supply. Importance of Price Elasticity of Supply to Producers
and Governments.
UNIT 5: The Concept of an Equilibrium Price and Changes in the Equilibrium Price.
UNIT 6: Introduction to Algebraic Equations on Demand and Supply and Their Solutions.
UNIT 7: Price Controls: (a) Maximum Price Control – Meaning and Problems (b) Minimum Price Control – Meaning and Problems.
YEAR 3
SECTION 1
THE THEORY OF PRODUCTION
UNIT 1: The Concept of Production and Productivity: – Meaning of Total Product (TP), Average Product (AP) and Marginal Product (MP); Factors Affecting
Productivity in Agriculture and Industry.
UNIT 2: Time Periods in Production: – The Market Period; Short run, Long Run and the Longer Run (Secular Period). The Law of Diminishing Returns (the Law of
Variable Proportions) Associated with the Short Run. Relationship Between MP, TP and AP. Economic and Uneconomic Stages of Production.
UNIT 3: The Scale of Production:- Meaning; Returns to Scale: – Increasing, Constant and Decreasing (Associated with the Long Run).
UNIT 4: Location of Industries: - Meaning; Factors Affecting Location of Industries; Reasons why Industries Tend to be Sited in Urban Areas; Reasons why
Industries should be Sited in the Rural Areas. Localization (Concentration) of Industries: Meaning; Advantages and Disadvantages of Localization of
Industries (External Economics and Diseconomies of Scale).
UNIT 5: Specialization and Division of Labour – Meanings, Advantages and Disadvantages.
UNIT 6: Labour Intensive and Capital Intensive Methods of Production (Choice Depends on Input Productivities and Prices)
UNIT 7: The Concept of Appropriate Technology in the LDCs.
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SECTION 2
PRICES OF FACTORS OF PRODUCTION
UNIT 1: (a) Factors Determining the Demand for a Factor of Production:

(i) Price of the Factor (ii) Demand Conditions of the Factor – Marginal Revenue Productivity (the Price of the Output and the Marginal Physical Product of
the Factor). A Change in the Demand for a Factor of Production: Meaning; Graphical Representation.
UNIT 2: (b) Factors Determining the Supply of a Factor of Production;

(i) The Price of the Factor (ii) Supply Conditions (e.g. Conditions of Service; Period of Education); A Change in the Supply of a Factor of Production:
Meaning; Graphical Representation.
SECTION 3
THE THEORY OF COSTS AND REVENUE
UNIT 1: The Concept of Cost of Production:– Meaning; Difference between Private/Accounting Cost Including Explicit and Implicit Cost and Social/Opportunity
Cost.
UNIT 2: Cost Concepts in Production – (a) Short-Run Costs – Fixed Cost, Variable Cost; Total Cost; Average Cost; Average Fixed Cost; Average Variable Cost
and Marginal Cost. The Relationship between Them; Long-Run Costs; Internal Economies and Diseconomies in Agriculture and Industry (Technical,
Managerial etc); Factors Determining the Size of Firms (e.g. Size of Market, Availability of Capital).
UNIT 3: Revenue Concepts – Average Revenue; Marginal Revenue and Total Revenue; Relationship between Them.
UNIT 4: Concept of a Market; Market Structures: - Characteristics of the Various Market Structures – (a) Perfect Competition (b) Monopoly (c) Imperfect
Competition (Monopolistic Competition;). Their Advantages and Disadvantages. Sources of Monopoly Power; Control of Monopoly.
UNIT 5: Objectives of Firms (e.g. Profit Maximization; Increase in Size of Firm). Concept of the Equilibrium of a Firm. Short Run Equilibrium of the Firm Under the
Various Market Structures. The Loss Minimising Firm. The Concept of an Equilibrium of an Industry.
UNIT 6: Price Discrimination – Meaning; Possibility; Profitability.
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SECTION 4
DISTRIBUTIVE TRADE
UNIT 1: Methods of Distribution: – Price System and Rationing and Their Problems.
UNIT 2: Agencies of Distribution: – Private; Government; Co-operatives. Channels of Distribution: – Producer; Wholesaler; Retailer. Functions of The Wholesaler
to The Manufacturer and to The Retailer. Functions of The Retailer to The Consumer and The Wholesaler.
UNIT 3: Problems of Internal Distribution of Agricultural Produce and Industrial Products in Ghana and Their Remedies.
SECTION 5
THE THEORY OF CONSUMER BEHAVIOUR
UNIT 1: The Utility Concepts and the Law of Diminishing marginal Utility: – Marginal Utility; Average Utility and Total Utility and Their Relationships.
UNIT 2: The Concept of an Equilibrium of a Consumer. The Conditions for The Equilibrium of The Consumer:
(a) The Case of a Single Commodity (Assumptions that (i) Utility is Measured in Utils (ii) Utility is Measured in Money Terms) (b) The Case of Two
Commodities. The Paradox of Value.
UNIT 3: The Effect of a Change in Price on The Equilibrium of a Consumer. Why a Consumer Will Normally Buy More at a Lower Price. The Concept of Consumer
Surplus – Use Marginal Utility Curve and the Demand Curve.
UNIT 4: The Concept of a Substitution Effect and an Income Effect of a Change in Price. (The Analysis of The Effects of a Change in Price on Consumer
Equilibrium). Use Indifference Curves. (Note: The Properties of Indifference Curves need not be taught).
SECTION 6
THE NATIONAL INCOME ACCOUNTING AND DETERMINATION
UNIT 1: Concept of National Income; The Circular Flow of National Income; Measurement of National Income: Output/Product; Income and Expenditure
Approaches and their Problems.
UNIT 2: The Concept of Gross Domestic Product (GDP); Gross National Product (GNP); Net National Product (NNP) and Their Relationships. Conversion of
Nominal Income into Real Income (Deflating).
UNIT 3: The Concept of the Level of Living and the Standard of Living. The Concept of Per Capita Income.
UNIT 4: Use and Limitations of National Income Data as Basis for Inter-Temporal and International Comparison of Levels of Living. Other Uses of National Income
Data.
xv
UNIT 5: Aggregate Expenditure: Meaning; Importance and Components ((i) Consumption: Meaning; Consumption Function; MPC (ii) Investment: Meaning;
Autonomous and its Functions; (ii) Government Expenditure (iv) Net Exports: Meaning; Equilibrium National Income: Meaning; Graphical Representation
– (a) Total Income/total Expenditure Approach (b) Savings and Investment Approach. Changes in the Components of Aggregate Expenditure and Their
Effects on Equilibrium National Income and Employment.
UNIT 6: The Multiplier: Concept and Measurement. The Multiplier in Open and Closed Economies (with and Without Government Taxation).
UNIT 7: The Concepts of Economic Growth and Economic Development; Features of the LDC‟s. Why some Countries Have Higher National Incomes than Others.
Why Some Countries Have Higher National Income Growth Rates than Others.
YEAR 4
SECTION 1
AGRICULTURE AND INDUSTRY
UNIT 6: Agriculture: Systems of Agriculture (Peasant; Commercial) and Their Relative Contribution to Food; Industrial Raw Materials; Employment; Foreign
Exchange. Types of Agricultural Production in Ghana; e.g. Food Crops; Export Crops; Problems of Agriculture - e.g. i) Supply Problem, Such As Lack of
Credit Facilities; ii) Demand Problem, Such As Transportation and Storage; Remedies. Importance of Agriculture to National Income, Foreign Exchange,
Government Revenue, Industry and Food Supply.
UNIT 7: Industrialisation: The Concept of Industrialisation; Meaning; Types - Cottage industries, Light Industries, Heavy Industries; Strategies of Industrialisation
(Processing, Import Substitution, Export-led); Importance of Industrialisation (Contribution to National Income; Employment etc.) Problems i) Supply – e.g.
Inadequate Capital and Raw Materials etc. ii) Demand – e.g. Low Income and Competition from Cheap Imports etc. (iii) Others: Political Instability and
Bad Government Policies); Solutions. Ways / Methods of Encouraging Industrialization in Ghana (Protecting Infant Industries; Creating Industrial Estates
etc.) The Link between Agricultural and Industrial Development; Public Policy Towards Agricultural and Industrial Development in Ghana.
SECTION 2
MONEY AND FINANCIAL INSTITUTIONS
UNIT 1: Money: Definition; Historical Development of Money;

UNIT 2: Characteristics of Good Money; Functions of Money;
UNIT 3: Supply of Money: Meaning; Forms of Money in a Modern Economy (M o, M1, M2); Determinants of supply of money. Demand
for Money: Meaning; Motives for Holding Money and Their Determinants.
UNIT 4: The Value of Money: Meaning; Determinants; Measurement of Changes in The Value of Money.
UNIT 5: Financial Institutions: Money Markets:– Meaning; Capital Markets:– Meaning.

UNIT 6: Banking Institutions: Commercial Banks; Their Functions and Roles in Economic Development; How Commercial Banks Create Credit; Micro Finance
Institutions; Central Bank; Their Functions and Roles including monetary policies; The Economic Development of West African
Countries.
UNIT 7: Inflation: Meaning; Types; Causes of Inflation in LDCs; Effects of Inflation; Control of Inflation.
xvi
SECTION 3
PUBLIC FINANCE
UNIT 1: Government Activities: The Need for Government Activities (Objectives of Public Finance e.g. (i) Protection of Life and Property (ii) Stabilizing The
Economy; (ii) Improving Economic Efficiency).
UNIT 2: Categories of Government Expenditure (Central and Local Governments) – Composition or Structure ((i) General Administration e.g. Civil Service;
Armed Forces; (ii) Economic Services e.g. Agriculture and Industry; (iii) Social Services e.g. Infrastructural Facilities; Education; (iv) Transfer
Services e.g. Servicing of Public Debt, Payment to Pensioners)
UNIT 3: Effects of Government Expenditure on (i) Level of National Income and Employment (ii) Distribution of Income (iii) Allocation of Resources
UNIT 4: Public/Government Revenue: Sources – (a) Recurrent/Regular Sources e.g. Taxation, Royalties, Income from Government Activities etc. (b) Capital
Sources e.g. Loans and Grants
UNIT 5: Taxation: - Types (Direct and Indirect); Objectives of Direct and Indirect Taxes; Merits and Demerits of Direct and Indirect Taxes; Incidence of
Taxes; the effects of price elasticity of demand on the incidence of taxes; Rates of Taxation (Proportional; Progressive; Regressive);
Principles/Canons of Taxes.
UNIT 6: The National Budget: Definition; Concept of Budget Balance – Budget Surplus; Budget Deficit; Balanced Budget; Purpose (e.g. Control Inflation, to
Check a
Deflation etc.); Division of Government Expenditure into recurrent and capital expenditure; Importance of Recurrent and Capital Expenditures.
UNIT 7: The National Debt: (i) Internal Debt and (ii) External Debt; Their Meanings; Types of Public Debts (Short and Long Term).
Reasons Why Governments Borrow From Internal and External Sources. Sources of (i) Internal Borrowing e.g. Banks and The Public (ii) External
Borrowing; e.g. Foreign Government; International Financial Organisations, Such As The World Bank and The IMF. Effects of The National Debt
(Internal and External); Debt Servicing: Meaning;
UNIT 8: Fiscal Policies: Meaning; Tools and Effect on Income and Employment.
SECTION 4
INTERNATIONAL TRADE
UNT 1: Differences Between Domestic (Internal) Trade and International (Foreign) Trade.
UNIT 2: Reasons for International Trade e.g. Uneven Distribution of Natural Resources, Differences in Efficient Use of Resources (The Law of Comparative
Costs/Advantage). Advantages and Disadvantages of International Trade.
UNIT 3: Some Concepts: (i) Terms of Trade (Commodity Terms of Trade) Changes in The Terms of Trade (ii) Balance of Trade (iii) Balance of Payments
(Current, Capital, Including Balancing Items; Total) Accounts; Financing a Deficit.
UNIT 4: Arguments Against Free Trade (Arguments for Protection) e.g. Protection of Infant Industries, Generate Revenue. Arguments for Free Trade (Trade
Liberalization)
UNIT 6: Exchange Rate: Meaning; Determinants of The Exchange Rate; Exchange Rate Regimes.
xvii
SECTION 5
ECONOMIC CO-OPERATION
UNIT 1: Different Forms of Economic Cooperation: e.g. Free Trade Area; Customs Union; Common Market; Economic Union; Economic Integration.
UNIT 2: Advantages and Problems of The Various Forms of Economic Co-operation.
SECTION 6
ECONOMIC DEVELOPMENT PLANNING
UNIT 1: Economic Development Planning: Meaning; Objectives or Reasons for Economic Development Planning; (e.g. to Increase The Level of Income and
Employment; Provision of Infrastructure); Time Periods of economic Development Planning; Problems of Development Planning.
xviii
SENIOR HIGH SCHOOL - YEAR 2
SECTION 1
FUNDAMENTAL CONCEPTS IN ECONOMICS
General objectives: The student will:

1. acquire basic principles of the management of scarce resources
2. understand the meaning of economics
3. appreciate the scope of economic activity
4. recognise the classification and contributions of various economic activities
5. use statistical tools in economic analysis
UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES
The student will be able to:
UNIT 1
INTRODUCTORY 1.1.1 explain the meaning of  Scarcity does not mean that “the quantity Guide students to discuss the meanings of Explain in simple
CONCEPTS (i) scarcity of the resource available is small”. It scarcity, choice, scale of preference and terms, with examples,
(ii) choice means the quantity of the resource opportunity cost. scarcity, choice, scale
(iii) scale of preference available is small in relation to the wants of preference and
(iv) opportunity cost of people and organizations Students to do the following: opportunity cost.
i. List their needs for the next three months
 Choice – where our needs are more than and estimate the total cost of the needs.
our means (resources i.e., income etc), ii. Estimate the total allowance they expect
we have to make a choice of the needs to for three months.
satisfy first. iii. Compare their three months allowance to
the total value of their needs and state
 To get the highest possible satisfaction whether their total allowance will be
from the relatively scarce resources, adequate for all their three months‟ needs.
choice must be based on a scale of
preference – an arrangement or list of Let students now prepare their Scale of
wants in an order of importance. Preference by listing their needs in priority
order or order of importance and state the
 Choice involves opportunity cost. Where needs that can be satisfied with the means
resources are scarce, satisfying one want available to them.
means that another want cannot be -Let students indicate the unsatisfied needs
satisfied. The wants which the same and now identify the opportunity cost.
resources could not satisfy, is termed the
opportunity cost of what is satisfied. NOTE: Teacher to use Production
Possibility Curves to explain Scarcity,
Choice and Opportunity Cost.
19
ACTIVITIES
UNIT 1 (CONT’D)
INTRODUCTORY
CONCEPTS
Definition of 1.1.2 define Economics It is the study of the management of relatively Assist students to discuss the definition Give a definition of
Economics scarce resources. in the content column. economics and explain it.
For maximum satisfaction, relatively scarce Students should be made to bring

resources cannot be used anyhow. They must five different definitions of Economics
be managed to achieve the highest possible from different Textbooks to class for
satisfaction. discussion
NOTE: The word “resources” is used differently .
at three levels. From these definitions, guide students
At the level of the individual- resource to formulate a definition which stresses
essentially refers to money, income or cash how people manage their scarce
At the level of an organization, resources refer resources.
to land, capital, labour and enterprise.
At the level of a nation, resources again refer NOTE: Definitions which lack the idea of
UNIT 2 to land, capital, labour and enterprise resource management should not be
accepted.
SCOPE OF
ECONOMIC
ACTIVITY:-
PRODUCTION 1.2.1 mention some economic Economic activity: any activity for which one Guide students to list some economic Debate
AND activities in their locality receives an income. Some economic activities activities in the country. “The manufacturer is more
DISTRIBUTION include: important than the
i. farming vii. teaching NOTE: Economic activities consist of retailer”.
ii. hunting viii. banking production and distribution; production is
iii. quarrying and ix. driving not complete without the produce
sand winning x. making wooden reaching the consumer (distribution).
iv. manufacturing planks
v. fishing xi. trading
vi. computer repairs xii. road construction
xiii. mobile phones
manufacturing
1.2.2 describe how goods reach Goods and services can reach consumers Students to discuss various ways by
final consumers through the middleman by which goods reach the final consumer.
 road transportation
 rail transportation
 air transportation
20
ACTIVITIES
UNIT 2 (CONT’D) The student will be able to:
SCOPE OF
ECONOMIC
ACTIVITY-
PRODUCTION AND
DISTRIBUTION
Classification of
Economic Activity 1.2.3 classify various economic Economic activities are usually classified into 3 Assist students to discuss the reason for What changes do you
activities into: groups for purposes of decision-making: grouping economic activities. expect in the contributions
(i) primary production of the various economic
(ii) secondary production (a) primary production., ie. the production of Students to group economic activities in activities as the economy
Contributions of the (iii) tertiary production raw materials from the soil, water bodies etc the content of 1.2.1 into: develops?
sectors to the (d) secondary production, i.e. the (a) Primary production
Economy transformation of raw materials into (b) Secondary Production
finished or semi-finished goods (c) Tertiary Production
(c) tertiary production, i.e. the production of and give reasons for the grouping
services
1.2.4 identify the contributions of Contributions in terms of: NOTE: Look for data sources such as:
various economic activities (a) national income/output  State of the Ghanaian
to (b) employment Economy (ISSER)
the economy (c) savings  Bank of Ghana Bulletin
(d) foreign exchange earning  Internet
21
ACTIVITIES
UNIT 3 The student will be able to:
TOOLS OF 1.3.1 identify tables, graphs, charts i. A table is an orderly presentation of data NOTE: Bring examples of tables,
ECONOMIC and pictograms from available in rows and columns graphs, different types of charts for
ANALYSIS data. students to see and compare..
ii. Graph is a representation of
tabulated data in pictorial form. Assist students to discuss the various
ways or reasons for choosing particular
iii. A chart: there are various types of data representation.
types of charts:-
 a pie chart is a circle divided into sectors,

each sector representing the relative size
of different variables of the population or
objects
 a bar chart is a representation of data by

scaled lengths of bars. There are simple
bar charts, component bar charts and
multiple bar charts.
 pictograms are charts in which picture

symbols are used to represent data.
1.3.2 prepare tables, graphs, charts Preparation of data presentation Assist students to generate sets of data Students should generate
and pictograms for drawing the various graphs and their own data and
charts. represent them with the
appropriate graphs/charts
1.3.3 interpret graphs and charts Interpretation of graphs and charts Present sets of data for students to draw and present to the
various graphs and charts. teacher.
Help students to interpret the meaning of
graphs and charts
1.3.4 use mean, median and mode Statistical meaning and representation of Assist students to represent data by the Exercises involving the
in interpreting statistical data. mean, median and mode. mean, median and mode. calculation of mean
median and mode should
be given to students.
22
SECTION 2
FACTORS OF PRODUCTION (KINDS OF RESOURCES OF INPUTS)

1. understand the types of factors of production and their meanings.
2. appreciate the importance of the availability of various factors of production
3. be aware of various population and labour issues.
4. recognize and understand the various business units and their advantages and disadvantages.

ACTIVITIES

LAND
Meaning of land 2.1.1 define land as a factor of Land is a factor of production which consists of Lead a whole class discussion on the Mention some natural
production. the land surface, the sea and the air. meaning of land. resources found on the
Allow a brainstorm activity to arrive at land and the economic
Land should be explained in terms of natural the meaning. activities which go with
resources and not only in terms of land them.
surface. E.g.,
 Vegetation cover
 Mineral Resources
 Fishes from the sea/rivers and
streams.
Characteristics 2.1.2 identify the characteristics of Briefly explain the concept

The characteristic features of land include the  Lead a class discussion to of land as a factor of
of Land. land. following. identify the characteristic production.
features of land.
1. Land is fixed in quantity.  Explain each of the
2. Land is geographically immobile but characteristics to students.
occupationally mobile
3. Land has no cost of production (it is a
gift of nature).
23
ACTIVITIES

LAND
4. Land earns rent
5. Land varies in quality from one place
to another
Importance of 2.1.3 explain the importance of The importance of land relates to its uses for:- Guide students through a discussion to Explain with examples the
Land land.  Agricultural activities explain the importance of land in terms importance of land.
 Live-stock production of its uses.
 Fishery
 Buildings
 Transportation
 Mining and quarrying
 Forestry and wild life
Problems of 2.1.4 identify the problems of The problems of land include the following: Let students individually list problems of Identify the main problems
Land land as a factor of production. land in their jotters for discussion in in the exploitation of land.
 Land can lose its fertility
class.
 Land tenure problems
Hint: The problems of land are related
to their uses. E.g. In farming,
there is the problem of keeping up
fertility.
24
ACTIVITIES
UNIT 2
LABOUR
 Engage students in a
Meaning of Labour 2.2.1 define labour as a factor of Labour is all human effort which may be brainstorm activity on the
production. physical, mental, skilled and unskilled, used in meaning of labour as a factor of
the production of goods and services usually production. Guide students to
for a reward. understand that labour is made
up of both physical and mental
effort, and skilled and unskilled.
 Ask students to give examples

of both efforts.
Types of Labour 2.2.2 identify types of labour. Labour can be grouped into Teacher to ask students to draw two Find out the qualifications
(a) Skilled labour columns in their exercise books and list you need to become any
(b) Unskilled labour examples of workers in the community, skilled worker of your
classifying them into skilled and choice, and report your
unskilled. findings in class.
NOTE: Labour may also be classified

into:-
 High level manpower
 Middle level manpower
 Lower level manpower.
Difference Lead students through a brainstorm Explain the difference

between the 2.2.3 differentiate between labour Labour force is the total number of persons of activity to come out with the difference between the labour force
Labour Force force and supply of labour. working age able to supply labour for between labour force and supply of and supply of labour,
and Supply of production of economic goods and services. labour. giving examples.
Labour
Supply of labour on the other hand is the total
number of people of working age offering
themselves for employment at a given wage
rate during a particular period of time.
Factors include:
 Size of population
 Retirement age
25
ACTIVITIES
LABOUR
Guide students through a whole-class What factors determine
Factors affecting 2.24 explain the factors affecting Factors include: discussion to explain factors affecting the supply of labour in
Supply of Labour supply of labour.  Size of population supply of labour. your country?
 Retirement age
Efficiency of labour must be taught in (a) What is efficiency of

Efficiency of 2.2.5 explain the concept of Meaning of Efficiency of Labour. terms of productivity. labour?
Labour Efficiency of Labour. (b) Explain four ways for
improving efficiency of
labour.
Determinants of 2.2.6 explain the determinants of Some determinants are: Teacher to lead students to mention and
Efficiency of efficiency of labour. (i) education and training explain the factors that would affect the
Labour (ii) health productivity of the farmer.
UNIT 3
Teacher to invite a resource person e.g. What role do Trade
TRADE UNIONS 2.3.1 explain what Trade Unions Explanation of Trade Unions and Employers a T.E.W.U leader to give a talk to Unions play in Ghana?
AND OTHER and Employer‟s Associations Association. students on Trade Unions, Employers
LABOUR are. Associations and Government policies
CONCEPTS and their roles in collective bargaining.
Effects of Trade
Unions,
Employers 2.3.2 explain the role played by Roles of Trade Unions, Employers
Associations and Trade Unions, Employers‟ Associations and Government in the - do -
Government Associations and determination of wages
Policies on Government in the
Wages determination of wages.
Mobility of
Labour 2.3.3 explain Mobility of Labour. Mobility of labour consists of Geographical and Engage in whole-class discussion on Differentiate between
Occupational Mobility of Labour geographical and occupational mobility geographical and
of labour. occupational mobility of
labour.
26
ACTIVITIES
TRADE UNIONS 2.3.4 explain the factors Some of the factors affecting geographical Whole class discussion on factors affecting What factors affect
AND OTHER affecting geographical mobility of labour are: geographical mobility of labour. Teacher‟s geographical mobility of
LABOUR mobility of labour  availability of jobs guidance is needed. labour in your country?
CONCEPTS  cost of transportation
Factors affecting 2.3.5 explain the factors Some of the factors affecting occupational Whole class discussion on factors affecting Explain the factors that
Occupational affecting occupational mobility of labour are: occupational mobility of labour. affect occupational
Mobility of Labour mobility of labour.  differences in wage levels and other mobility of labour in your
conditions of service. country.
 ease with which skills can be
acquired
UNIT 4
POPULATION
Size of Population 2.4.1 explain the term “Size of a The total number of people in a defined Students brainstorm on the meaning of Find the population sizes
Population”. geographical area at a particular time. “size of population” of the class as an of ECOWAS countries
example. from the following
sources:
a) Atlas
b) Internet
c) Books and
magazines
Meaning of 2.4.2 explain a census. Census does not only involve counting heads Teacher to explain what a census is.
Population but it involves collecting data on various
Census characteristics of the population.
27
ACTIVITIES

UNIT 4: (CONT’D)
2.4.3. explain how a census is A census involves: Invite a resource person to give a talk on Teacher to help students
POPULATION conducted how a census is conducted. to prepare a questionnaire
i. preparation stage for the census
ii. implementation stage
iii. processing of data
Importance of a 2.4.4. explain the importance of a i. A census is for planning the political, The resource person to cover the
census census to a country administration and socio-economic important aspects of census and
development of the country. problems associated with census.
Problems of 2.4.5. identify problems of census Problems of census include:

Census  High rate of illiteracy Explain the problems
 High cost associated with a census
 Lack of trained personnel in the LDC‟s
 Poor regional planning
28
ACTIVITIES
UNIT 4: (CONT’D) The student will be able to:

POPULATION
The Growth of 2.4.6. explain the term „Growth of Population growth shows how large the Teacher to use class size, adding to it Explain the following
population Population‟ size of population becomes. The growth and subtracting from it to illustrate to concepts.
depends on three (3) factors – Birth rate, students how birth rate, death rate and
Death rate and Net migration. migration determine population growth. a. Birth rate
b. Death rate
c. Migration
d. Net migration
The Demographic 2.4.7. explain the Demographic The theory shows that countries pass Teacher to use case study approach to Explain the theory of
Transition theory Transition Theory. through 3 stages of population growth. explain the theory by creating scenarios Demographic Transition
These are: to demonstrate why people gave birth to
i) high birth rate and high death many children in the past but would now
rate, give birth to a few children only. Again
ii) high birth rate and declining why high death rates in the past may
death rate, later decline.
iii) low birth rate and low death rate
Youthful and 2.4.8 explain the meaning of (1) Youthful population has the following Teacher to use a two column table to Explain why a youthful
Ageing youthful and ageing features: present the characteristics of youthful population is a rising
Population populations. and ageing populations. population, and an ageing
a) high birth rate population is a declining
b) declining death rate population.
c) a life expectancy of less than 60
years
d) a rising population
(2) Ageing Population has the following

features:
a) low birth rate
b) low death rate
c) high life expectancy of over 70
years.
29
ACTIVITIES

UNIT 4: (CONT’D)
POPULATION
2.4.9 explain the effects of youthful and (1) Some effects of a youthful population Teacher to guide students through Explain the effects of a
Effects of ageing populations on an economy. on an economy are: whole-class discussion to bring out more youthful population on an
Youthful and effects of youthful and ageing economy.
Ageing a) Large labour force populations. Futures wheel teaching
Populations technique is recommended here.
b) Pattern of investment will change in
favour of goods demanded by the .
youth.
(2) Some effects of an ageing population

are:
a) Pattern of investment will change in

favour of goods demanded by the aged.
b) High dependency ratio.
30
ACTIVITIES
UNIT 4: (CONT’D) 2.4.10. explain the Malthusian The theory should relate to Teacher to explain the theory to Essay
POPULATION Principle of Population. students using the key points stated in Explain the effects of
i) rate of population growth the contents. The class to discuss the technological development
The Mathusian ii) rate of food production Malthusian Principle as an explanation on the operation of the
Principle of iii) positive checks of changes in the size of the population Malthusian Principle of
Population Growth iv) preventive checks. in LDCs. population.
Under-Population,
Optimum Population 2.4.11. describe under – i) Under – population:-when the Class to imagine three countries with Explain under-population
and Over-Population population, optimum ratio of population to resources is equal area and equal population size. over-population and
population and over- such that as population increases Class to be helped to realize that in optimum population.
population. per capita income will be relation to the available resources, one
increasing. country could be over-populated, and
another under- populated and the third
ii) Optimum population:- when the could have an optimum population.
ratio of population to other
resources results in the highest
possible per capita income.
iii) Over-population:- when the ratio

of population to resources is such
that per capita income decreases
as population increases.
31
ACTIVITIES

UNIT 4: (CONT’D)
POPULATION
The Structure of 2.4.12 describe the structure of a Sex, age, occupational and geographical Teacher to use class as the population What will the government
Population. population with respect to distribution of the population and guide students to group the of your country do in the
age, sex, occupation and population by: following situations.
geographical area. (i) age (a) A large ratio of children
(ii) sex and the aged to the total
Next ask students to adopt their parents population.
occupations and regions they come (b) A large ratio of females
from. Then ask students to classify the to the total population?
population by (c ) A low ratio of workers
(i) occupation to the total population.
(ii) geographical area
2.4.13 explain the policy Policy implications of various structures of Teacher to brainstorm with students to
implications of the various the population. bring out the policy implications of the
structures of the population. various structures.
2.4.14 explain the reasons for age, Factors affecting age, occupational and Brainstorm with students to bring out (a) Explain the distribution
occupational and geographical distribution of population. factors that affect age, occupational and of the population in your
geographical structures of a geographical distribution of a population. country with respect to:
population. (i) age
(ii) occupation
(iii) geographical area.
32
OBJECTIVES

POPULATION
Internal Migration 2.4.15 explain the term internal Movement of people from one A whole class discussion in which teacher 1. (a) What is meant by
migration. place to another within the country: asks students to indicate where they have rural-urban
(i) Rural – urban moved from and the reasons for the migration?
(ii) Rural – rural movement.
(iii) Urban – urban (b) Suggest possible
(iv) Urban – rural Teacher to classify responses on the ways of combating it.
chalkboard for further discussion.
2. What economic factors
influence the
movement
of people from rural to
urban areas?
Causes of Internal 2.4.16 identify the causes of internal Causes of internal migration. Lead a whole-class discussion to identify
Migration migration the causes of internal migration
Problems and 2.4.17 describe the problems of (i) Problems of internal Engage students in a brainstorm activity a) Describe the problems
Remedies of Internal internal migration and their migration to come out with of internal migration
Migration remedies. (ii) Remedies (i) the problems and
(ii) the remedies of internal b) Advance solutions to
migration. the problems.
33
ACTIVITIES
UNIT 5 The student will be able to

CAPITAL
2.5.1. explain the meaning of All man-made productive assets. Also Brainstorm with students to come out Explain the following:-
Meaning of capital capital as a factor of known as investment or producer goods. with meaning of capital.
Types of capital production. Teacher should distinguish between the a) Fixed capital
Accountant‟s and Economist‟s view of b) Social Overhead
Capital capital.
2.5.2 identify types of capital. They are: Students to be asked to identify various
capital items used by a business unit in
i) Fixed capital their community and to classify them by
ii) Social Overhead Capital the types.
These various types are required for Visits to business units in the community
business. are suggested
Note: Capital in this context does not refer

to Money/working/circulating capital.
Importance of 2.5.3. explain the importance of Importance of Capital:- Use examples around the various Why is capital important
Capital capital sectors of the economy to explain the as a factor of production?
 Facilitates mass production points listed in the content.
 Increases quality of work per man
hour etc.
Characteristics of 2.5.4. identify the characteristics of Characteristics of capital assets, e.g. Brainstorm with students followed by a
Capital Assets capital assets they are man-made. whole-class discussion on the
characteristics of capital assets
34
ACTIVITIES
UNIT 5 (CONT’D) The student will be able to

CAPITAL
Internal Sources of 2.5.5. describe the internal Internal Sources are: Students to brainstorm to come out with List and describe four
Financing Capital sources of financing the internal sources of capital. Follow sources of domestic
capital for a country. i) Personal Savings with group discussions on the following: capital for a country.
ii) Business Saving
iii) Government Savings How do:-
iv) Loans
a) Households save? (Group 1)
b) Firms save? (Group 2)
c) Governments save? (Group 3)
External Sources of 2.5.6 describe the external External sources are: Students to brainstorm to come out with
Financing Capital sources financing of i. Foreign Aid:- external sources of capital.
capital for a country. a) grants
b) loans Teacher to group the sources mentioned
c) technical aid under the various forms of external
sources and explain them.
ii. Foreign Investment:-
a) direct investment
b) portfolio/share capital equity/investment.
c) joint ventures
Advantages and 2.5.7 explain the advantages a) Some advantages of foreign aid are: Students to brainstorm to come out with a) What are the main
disadvantages of and disadvantages of i. Aid in the form of technical assistance the advantages and disadvantages of sources of foreign
Foreign Aid. foreign aid. makes available machinery and foreign aid. capital?
personnel that may be in short supply.
b) Explain the advantages
ii. Aid in the form of grants makes it and disadvantages of
possible for countries to finance foreign capital for a
development projects. developing country.
b) Some disadvantages of foreign aid are:
i. Development in the recipient country is

affected when the aid ceases.
ii. It reduces initiative especially in

agricultural production.
35
ACTIVITIES
The student will be able to
UNIT 5 (CONT’D)
CAPITAL
2.5.8 explain the advantages a) Some advantages of foreign investment Students to brainstorm and come out What are the advantages
Advantages and and disadvantages of are: with the advantages and disadvantages and disadvantages of
disadvantages of foreign investment. i. It creates employment of foreign investment. foreign direct investment?
Foreign Investment ii. It enhances government revenue
through taxation. Debate
It is wiser to rely on
b) Some disadvantages of foreign internal capital than
investment are: external capital.
i. It brings lopsided development in the
economy since it favours specific
sectors of the economy.
ii. It can worsen balance of payment deficits

through repatriation of capital and
profits.
Reasons for Capital 2.5.9. explain why there is Some of the reasons include, Group discussion to be organized to Why is there shortage of
Shortage in the shortage of capital in the i) with respect to Internal Sources: bring out reasons why there is shortage capital in the LDCs?
LDCs LDCs. a) Low income of capital in the LDCs.
b) Lack of credit facilities
Group presentations to follow. Teacher
ii) with respect to External Sources: to summarise relevant points on chalk
a) worsening terms of trade board.
b) strings attached to external loans.
36
ACTIVITIES
UNIT 6 The students will be able to:

ENTREPRENEUR-
SHIP/ENTERPRISE
Meaning of 2.6.1 explain the term The entrepreneur is the human factor that Teacher to guide students in a a) What is
Entrepreneurship Entrepreneurship/Enter- provides the capital for business, takes the discussion to identify the entrepreneur in entrepreneurship?
prise major decisions and bears the risks of a business unit operating in the locality. b) Who is
Functions of an business. entrepreneur?
Entrepreneur
2.6.2 explain the functions of Functions of an entrepreneur. Whole-class discussion to identify and c) What are the
an entrepreneur explain the functions of the functions of an
entrepreneur. entrepreneur?
2.6.3 differentiate between Difference between entrepreneurial A whole-class discussion to identify the
entrepreneurial function and managerial function. i. entrepreneur
functions and ii. the manager in (a) a large company
managerial functions (b) one-man business
2.6.4 explain the shortage of Reasons for the shortage of Teacher to lead students to brainstorm Why is there a shortage of
entrepreneurship in entrepreneurship. on shortage of entrepreneurship. entrepreneurs in LDCs?
LDCs.
Government 2.6.5 explain the reasons for Reasons why governments become Discuss with students to come out with Why do governments
as an Entrepreneur government entrepreneurs. (i) reasons why governments become become entrepreneurs in
entrepreneurship entrepreneurs the LDCs?
(ii) problems of governments as
Entrepreneurs.
Problems of 2.6.6 explain the problems of Examples are: -
Government government as an (i) Governments inability to What problems confront
as an Entrepreneur entrepreneur attract top class managerial governments as
personnel entrepreneurs in the
(ii) Governments inability to LDC‟s?
control the management of
State Enterprises
37
ACTIVITIES
TYPES OF 2.6.7 identify the types of Business Organizations include: Guide students to identify the various (a) Describe the following
BUSINESS UNITS Business Organizations (i) Sole Proprietorship forms of business organizations. Business Organisations .
(ii) Partnership i. Sole Proprietorship
Features of (iii) Joint Stock Companies ii. Partnership
Business (Private and Public) iii. Joint Stock companies
Organisations (iv) Co-operative Societies
(Producer, Marketing,
Consumer, Credit etc.)
(v) SOEs (Public or Statutory
Corporations)
(vi) Joint Ventures
38
SECTION 3
ECONOMIC SYSTEMS (ECONOMIES)
1. understand various economic systems and how they perform their functions
2. be aware of the different types of unemployment, their causes and remedies

ACTIVITIES

TYPES OF
ECONOMIC
SYSTEMS
Meaning of an 3.1.1 explain the meaning of An economic system (economy) is a set- Help students to identify various aspects (a) Explain the
Economic system an economic system up or mechanism for managing resources of the mechanism e.g. meaning of the
(economy) to attain certain goals. (i) ownership of resources term “an
(ii) method of decision making economic
(iii) value systems system”.
(b) What are the

Criteria for 3.1.2 identify the criteria for Criteria must relate to: criteria for
Identifying distinguishing between (i) ownership of resources distinguishing
Economic Systems economic systems (ii) method of decision making between
(iii) motivation for production – economic
profit or general economic systems?
welfare.
39
ACTIVITIES
TYPES OF 3.1.3 identify various types of The economic systems are: Guide students through whole-class Explain the differences
ECONOMIC economic systems discussion to identify the different between capitalist,
SYSTEMS i) Capitalist / market economy economic systems. socialist and mixed
ii) Socialist/ centrally planned economy economies.
iii) Mixed economy (including Market
Socialism)
Functions of 3.1.4 describe the functions of The functions of economic systems are: Ask students to consider their household Describe four functions of
Economic economic systems economies and answer the following an economic system
Systems i) What to produce questions:-
ii) How much to produce
iii) How to produce a) What is produced by your
iv) For whom to produce (How to household, e.g. cleaning and
Distribute) cooking services?
v) Full employment
vi) Economic Growth and Development b) How is production organized? E.g.
who does cooking and cleaning and
weeding? What equipment is used?
c) For whom is production done, e.g.

father, mother, children?
Lead students to brainstorm to bring out

the various functions of economic
systems.
NOTE: The discussion must emphasise

that the functions are necessitated by
the relative scarcity of resources.
40
ACTIVITIES

TYPES OF
ECONOMIC 3.1.5 describe how the various i) The Price Mechanism or Price System in Guide students to discuss how Describe how the price
SYSTEMS economic systems perform a capitalist economy. resources are allocated in the various system allocates
their functions. economic systems. resources in a market
ii) How resources are allocated in a economy.
socialist/Centrally planned economy.
iii) How resources are allocated in a Mixed

Economy.
Advantage and 3.1.6 explain the advantages Advantages and disadvantages of the Students to brainstorm to bring out the What are the advantages
Disadvantages of and disadvantages of the i) Capitalist economy advantages and disadvantages of the and disadvantages of the
Economic various economic systems. ii) Socialist economy various economic systems capitalist economic
Systems. iii) Mixed economies system?
UNIT 2:
3.2.1. explain what unemployment Unemployment is a situation in which Ask students to explain what they Distinguish between
UNEMPLOYMENT means. people who are capable of working and understand by unemployment. Combine unemployment and
AND UNDER- are looking for jobs at the existing wage the various views to bring out the underemployment?
EMPLOYMENT rate, cannot get the job. meaning of unemployment.
Meaning of Under- 3.2.2. explain what under- Under-employment is when labour is Students to consider a workplace with
employment employment means. engaged in a task that does not fully tap two (2) vehicles and five (5) drivers. Ask
its energy, skills and time. them to discuss how effectively each
driver would work to explain under-
employment.
Types of 3.2.3. describe different types of Some types of unemployment are: Guide students to identify unemployed Describe any five (5) types
Unemployment unemployment and their i) Classical people in the community and find of unemployment in your
causes. ii) Structural reasons for their unemployment. country.
iii) Seasonal
iv) Frictional NOTE: As the reasons are given teacher
v) Residual etc should lead students to classify them
under the various types of
Some causes of unemployment are: unemployment.
i) unavailability of co-operant
resources
ii) climatic conditions
iii) lack of skills
41
ACTIVITIES
Remedies for 3.2.4 Suggest remedies for Examples of remedies for unemployment Brainstorm with students to come out How can the level of
Unemployment unemployment are: with solutions to the different types of unemployment be reduced
unemployment in Ghana?
i) irrigation facilities
ii) technical and vocational
training
42
SECTION 4
PRICE THEORY (DEMAND)
General Objectives: The student will:
1. understand the importance of prices in decision making by consumers and producers

2. be aware of the meaning of demand and the factors determining demand.
3. understand and identify the various types of elasticity of demand and their importance

ACTIVITIES

THE CONCEPT OF
PRICE 4.1.1 define the concept of price Price is the money value at which a good Teacher to explain to students that the Make a sentence, with the
or service is demanded and supplied. money value placed on the goods and word price. Tell the class
Definition of Price services they buy everyday is referred to the price of something you
as price bought during the week.
Note: Prices should not be confused

with cost.
4.1.2 explain the importance of Relative prices of commodities determine Lead whole – class discussion to explain
Importance of prices to producers and the spending decisions of consumers and the importance of prices to:
prices consumers. output decisions of producers a) consumers
b) producers
43
ACTIVITIES
UNIT 1: The student will be able to:

THE CONCEPT OF
PRICE (CONT’D)
Bargaining/Hagglin 4.1.3. demonstrate the act of Bargaining/haggling/higgling is the Hold a whole – class discussion on Write short notes on the
g/Higgling bargaining/haggling/haggling. determination of prices by buyers bargaining to bring out its meaning. following:
and sellers. Bargaining/haggling Call pairs of students to the front of
takes place when both the buyer class to demonstrate bargaining at a i) Equilibrium price
and seller are not aware of the market place. Students to role play ii) Haggling
ruling market price. The buyer‟s to depict bargaining. iii) Auctioning
maximum price and the seller‟s iv) Price control
minimum price provide the „price
range for bargaining‟.
Auctioning 4.1.4 demonstrate the act of Auctioning-the seller offers the Brainstorm with students to come out
Auctioning. commodity for sale and asks the with how an auction is carried out.
buyers to bid for it. Let students imitate some buyers
bidding for the commodity from a
company auctioning an item they
want to buy.
Tender 4.1.5 explain the meaning of a A tender is an application in writing Use a whole – class discussion to Use Internet sources to find
tender. to purchase or sell a commodity. explain to students what a tender is. out how tendering is done and
present your findings in class.
i) Tender for purchase
Only one seller and a number of Guide students to role-play tendering
prospective buyers. Seller for purchase and tendering for
advertises the sale of his supply.
commodity and requests for
tenders.
ii) Tender for supply

Only one buyer and a number of
sellers. The buyer will ask
sellers of a commodity to
make tenders for supply.
44
ACTIVITIES
THE CONCEPT OF
DEMAND 4.2.1 explain the meaning of Definition of demand – Demand refers to Lead class through a discussion to What is demand for a
Demand the various quantities of a commodity that arrive at the meaning of demand. commodity?
consumers are willing and able to buy at
various prices within a given time frame,
all things being equal.
Effective Demand 4.2.2 differentiate between Difference between effective demand and Students to list their wants and be asked Explain the difference
and Wants/Desires effective demand and wants or desires. which of the items listed they can buy. between effective demand
wants or desires. and wants and desires.
The Law of Demand 4.2.3 explain the Law of Quantity demanded varies with price, all Teacher should explain the difference
Demand. things being equal. between Relative Price and Absolute
Price and must emphasize that price in
this context is relative price.
Explain the relationship between prices

and quantities demanded with a
diagram. State the Law of demand and
explain its operation to students.
Demand Schedule 4.2.4 plot a demand curve from Demand schedules and curves. Draw a two column table. Enter
and Curve data presented in a demand increasing price levels in one column.
schedule. Guide students to suggest
corresponding quantities of a good they
will be willing to buy.
Guide students to plot a demand curve.

Describe the shape of the demand
curve.
45
ACTIVITIES
TYPES OF DEMAND 4.3.1 identify the various types of Types of demand include: Let students list the various items they Use examples to illustrate
demand. i. derived demand have been buying. Guide them to the effects of a change in
ii. composite demand classify the items into types of demand the price of a commodity
iii. joint/complementary demand e.g. composite, complementary. on the demand for a
iv. competitive demand related commodity.
Illustrate with diagrams.
UNIT 4
FACTORS 4.4.1 explain the factors Factors include:- Brainstorm with students to state the What are the main factors
DETERMINING determining the demand a. Price factors that determine the demand for which determine a
DEMAND for good and services. b. Demand conditions: goods and services. consumer‟s demand for a
Prices of other commodities, Income, commodity?
Tastes, Price expectations etc. Assist students in a whole- class
discussion to explain how each factor
determines demand for goods and
services.
Difference between 4.4 2 differentiate between a Change in quantity demanded and change Use a demand curve to explain to
A Change In change in quantity in demand. students that a change in price, changes
Quantity Demanded demanded and a change quantity demanded. Explain movement
and A change in in demand. along the same demand curve. Also
Demand use diagrams to explain how other
factors other than price cause a total
shift of the demand curve to the right or
left of the original demand curve.
Exceptional 4.4.3 explain reasons for an Reasons for an exceptional demand curve Assist students to use various situations Explain with the aid of a
Demand Exceptional demand curve. eg. Giffen Goods to explain why the demand curve may diagram what is meant by
not slope downwards from left to right. an „exceptional demand
curve‟.
Use curves for illustrations.
UNIT 5
4.5.1 explain the meaning of own Elasticity of Demand is the degree of Use hypothetical demand schedules as
ELASTICITY OF Price Elasticity of Demand responsiveness quantity demanded of a examples to explain how price changes
DEMAND commodity to a change price of that produce different degrees of change in
commodity. the quantity demanded of different types
of commodities.
46
ACTIVITIES
ELASTICITY OF
DEMAND
Types of Elasticity 4.5.2 identify the other types of Other types of elasticity of demand Ask students to list the factors which Explain the following:
of Demand. elasticity of demand. including income and cross elasticities of affect the demand for a good or service. i. Price elasticity of
demand. Identify types of elasticity of demand by demand
relating the demand for a good or ii. Income elasticity of
service to one factor or the other in the demand
list. iii. Cross elasticity of
demand
Measurement of 4.5.3 explain the different Measurement of Use hypothetical demand schedule to
Elasticity of measures of elasticity of a) Price Elasticity of Demand. guide students to calculate the price
Demand demand. i. Point Elasticity Demand elasticity of demand at various prices.
ii. Arc Elasticity of Demand Use illustrative diagrams to enhance
b) Income Elasticity of Demand students‟ understanding of type of
c) Cross Elasticity of Demand elasticity of demand including income
and cross elasticities of demand
Assist students through a whole – class

discussion to explain the different
measures of elasticity of demand.
4.5.4 explain the various Various numerical values of elasticity. Guide students through the use of
numerical values i. Elastic Demand hypothetical figures and diagrams to
(coefficients) of elasticity of ii. Inelastic explain the various numerical values of
demand obtained through iii. Unitary elastic elasticity of demand.
calculations. iv. Perfectly elastic
v. Perfectly inelastic
47
ACTIVITIES
FACTORS
AFFECTING OWN 4.6.1 describe the factors Factors affecting own price elasticity of Assist students to brainstorm to come Explain the factors which
PRICE ELASTICITY affecting Own Price demand. out with factors affecting price elasticity affect price elasticity of
OF DEMAND Elasticity of Demand. i. Availability and closeness of substitutes of demand. demand for goods and
ii. Proportion of incomes spent on the services.
commodity
iii. Time
iv. Durability of the commodity
Importance of 4.6.2 explain the importance of Importance of the various types of Hold a whole-class discussion on the Explain the importance of
Various Types of the various types of elasticity of demand to: importance of each concept of elasticity the various types of
Elasticity of elasticity of demand. of demand in the decision making of: elasticity of Demand to:
Demand i. consumers i. consumers i. consumers
ii. producers ii. producers ii. producers
iii. the government ii. the government. iii. the government
e.g. the importance of the price elasticity

is as follows:
i) To Consumers: -
a) if e>1, total expenditure
increases as price falls
b) if e<1 total expenditure

decreases as price falls
ii) To Producers:-
a) if e>1 total revenue
increases as price falls
b) if e<1 total revenue

decreases as price falls.
Implication of this is that
an increase in output
would reduce total
revenue (Paradox of
plenty).
48
UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING ACTIVITIES EVALUATION
UNIT 6: (CONT’D) The student will be able to: iii) To Government:-

a) – if e>1 a tax on a
commodity is likely to
yield less revenue to
government.
- if e<1 a tax on a commodity is

likely to yield more revenue to
government.
b) if demand is less elastic, a

price support scheme would
involve holding less stocks.
49
SECTION 5
PRICE THEORY (SUPPLY)

1. understand the meaning of supply and the factors determining it.

2. appreciate the concept of elasticity of supply, its importance and the factors affecting it.
3. understand the concept of equilibrium price and how it is determined.

ACTIVITIES
UNIT 1
THE CONCEPT OF
SUPPLY
Definition of Supply 5.1.1 define supply. Meaning of supply – the quantities of a Lead students to define supply and Distinguish between
commodity that sellers are willing and able show how it differs from production. supply and production.
to put on a market at various prices within
a given time frame. All other things being
equal.
The Law of Supply 5.1.2 state and explain the law of The law of supply states that an increase Guide students to state the law of State the law of supply
supply in the relative price of a commodity will supply. and explain it.
result in an increase in quantity offered for
sale, vice versa, all things being equal.
Supply Schedule 5.1.3 explain (i) a supply A supply schedule and a supply curve. Guide students to use hypothetical With appropriate
and Curves schedule (ii) a supply curve figures to construct a supply schedule. illustrations, explain
i. a supply schedule
Next, Guide the students to draw a ii. a supply curve.
supply curve from the hypothetical
supply schedule.
Exceptional Supply 5.1.4 draw exceptional supply Exceptional supply curves include: Guide students to use hypothetical In what circumstances
Curves curves and explain their i. Backward- bending figures to draw the three types of would exceptional supply
meaning ii. Horizontal exceptional curves and explain (i) their curves occur?
iii. vertical meanings and (ii) the circumstances in
which they would occur.
5.1.5 state reasons for Reasons for exceptional supply curves
exceptional supply curves
50
ACTIVITIES
TYPES OF SUPPLY 5.2.1 describe the different types Types of supply: Teacher to choose an example of each Describe with examples
of supply. i. Composite type of supply and assist students to the following types of
ii. Joint/Complementary describe the types of supply. supply:
iii. Competitive. i. Composite
ii. Joint
iii. Competitive
UNIT 3:
Factors Determining 5.3.1 (i) state and explain the Factors that influence supply i. With the aid of a supply curve, guide State and explain five
Supply factors that determine supply (a) Price students to understand that the price factors that determine
(b) Conditions of supply; e.g. input prices, of a commodity determines the supply.
(ii) distinguish between a change technology, prices of other quantity supplied. A change in price,
in quantity supplied and a commodities, climatic factors, therefore, changes the quantity With appropriate
change in supply. government policies. supplied ( illustrated by a movement illustrations distinguish
along a given supply curve) between “change in
supply” and “ change in
ii. With a diagram, guide students to quantity supplied”
understand that the conditions of
supply determine the position of the
supply curve. Therefore, a change in
the conditions of supply would change
the position of the supply curve – i.e.
shift the supply curve.
Tell students to note that “a change in

the conditions of supply” is simply
termed “a change in supply”.
51
ACTIVITIES
PRICE ELASTICITY 5.4.1 define price elasticity of The Meaning and Measurement of price Teacher to tell students that elasticity of
OF SUPPLY: supply. Elasticity of supply. supply is the responsiveness of quantity
CONCEPT AND supplied to a change in price.
MEASUREMENT
5.4.2 calculate coefficients of Formula for Measuring Price Elasticity of The responsiveness is measured in Define price elasticity of
piece-elasticity of supply Supply: terms of a comparison. However, it is supply and show how it is
and interpret them. not a comparison between a change in measured.
Percentage Change in Quantity supplied price and the resultant change in
Percentage Change in the Price quantity supplied (Explain that the two
or values, measured in different units
Proportionate Change in Quantity supplied cannot be compared). It is a comparison
Proportionate Change in the Price. between the percentage or proportionate
change in price and the resultant
percentage or proportionate change in
quantify supplied.
Next, teacher to guide students to What is the meaning of

construct a hypothetical supply schedule the following:
and calculate the price elasticity of i. e > I
supply from one price level to another. ii. e < I
This can be done over two price ranges. iii. e = ∞
Then teacher to help students to iv. e = o
interpret the coefficients of price v. e = 2 compared with e =
elasticity of supply in terms of supply in 3;
terms of: vi. e = 0.25 or ¼
compared with e = 0.75
i. supply is price elastic or inelastic or ¾?
ii. supply is more elastic in one case
than the other.
iii. supply is more inelastic in one case
than the other.
52
ACTIVITIES
PRICE ELASTICITY 5.4.3 determine when to use Point Elasticity Versus Arc Elasticity. Teacher to tell students that the point Below is a hypothetical
OF SUPPLY: the point elasticity formula elasticity formula is used when the supply schedule.
CONCEPT AND or the arc elasticity formula Point price elasticity of supply percentage change in price is small, say
MEASUREMENT 5 per cent or less; and the arc elasticity P Qs
QS P formula is used when the percentage ¢ kg
=  change in price is large. 100 1000
QS P 99 960
98 930
97 910
96 900
95 890
Arc elasticity of supply 94 880
Teacher to assist students to draw up a

QS P
=  supply schedule and ask students to a) Use the point elasticity
QS1  QS 2 P1  P2 calculate the coefficients of price formula to calculate the
elasticity of supply, considering (i) a price elasticity of
2 2 small percentage change in price and (ii) supply as price falls
a large percentage change in price. from
i. ¢100 to ¢ 99.00
ii. ¢100 to ¢ 94.00
b) Use the arc elasticity

formula to do the same
calculations.
c) Comment on the
difference in the
coefficients obtained by
the different formulas.
53
ACTIVITIES
Factors affecting 5.4.4 describe the factors that Determinants of the Price Elasticity of Teacher to lead students to explain how Describe the factors which
Price Elasticity of determine the price supply, e.g. each factor influences the price elasticity determine the piece price
Supply elasticity of supply. of supply of a product. elasticity of supply of a
i. The quantity of the product in stock on product.
the market or on other nearby markets.
ii. The speed with which marginal costs

rise as production increases.
iii. The mobility of factors of production.
iv. The time periods of supply.
Importance of the 5.4.5 explain the importance of The importance of Price elasticity of i. Teacher to draw two supply curves, Why is the supply of some
Concept of Price the concept of price supply to: one more price elastic than the other. products more price-
Elasticity of Supply elasticity of supply (i) producers. Next, change demand from one level to elastic than others?
(ii) the government. another. With the help of the
diagram, teacher to lead students in a
discussion to establish that the less
price elastic supply is, the greater the
change in price brought about by a given
change in demand.
ii. Teacher to engage students in a

discussion to prove that, for the foreign
balance situation of a country to improve
after currency devaluation or
depreciation,
a) the supply of exports must be price

elastic.
b) the supply of imports must be price

inelastic.
54
ACTIVITIES
DETERMINATION 5.5.1 explain how prices are Determination of prices of goods and Use a diagram showing supply and How are prices
OF PRICES AND determined in a Free services in a Free Market. demand interaction to explain determined in a Free
QUANTITIES Market. determination of pries. Market?
The Concept Of 5.5.2 explain the concept of an A price which has no tendency to change Teacher to discuss with students to find With the aid of a diagram,
Equilibrium Price equilibrium price and because at that price quantity demanded out what would happen to price in each explain what is meant by
And Quantity. quantity. equals quantity supplied. There is no of the market situations: an equilibrium price and
shortage or surplus which would force i. qd > qs quantity.
price up or down. ii. qd < qs
iii. qd = qs
Changes In The 5.5.3 explain that changes in the Changes in the equilibrium price Starting from an initial equilibrium With the aid of diagrams,
Equilibrium Price demand and supply position, discuss with students to find explain the effect that the
And Quantity conditions would change out what would happen to the following factors would
the equilibrium price and equilibrium price when: have on the price of Milo;
quantity. i. An increase in salaries
i. there is an increase in demand and wages
ii. there is a decrease in demand ii. A decrease in the price
iii. there is an increase in supply of Bournvita
iv. there is a decrease in supply. iii. An increase in the
supply
Illustrate your discussions with of cocoa beans
diagrams. iv. An increase in
electricity tariffs.
55
ACTIVITIES
ALGEBRAIC 5.6.1. use algebraic equations to A straight line demand equation: Guide students to write a demand
EQUATIONS OF represent demand. equation, applying the law of demand.
DEMAND AND QD = 69 – 5p
SUPPLY
5.6.2. use algebraic equations to A straight line supply equation Guide students to write a supply
represent supply. equation, applying the law of supply.
QS = 5 + 3p
5.6.3. use algebraic equations to When the market is in equilibrium Teacher to lead students to use Give them different demand and
find equilibrium price and Qd = Qs . simultaneous equations to find the supply equations and ask them to
quantity. equilibrium quantity and price. solve for the equilibrium price and
. quantity.
Use the equations above to
determine equilibrium price and
quantity.
Note: Limit them to the single

commodity equations
56
ACTIVITIES
PRICE CONTROLS 5.7.1. explain the meaning of Price Price control occurs when the Brainstorm with students to come out with the
(Price Regulations) Control. government fixes by legislation meaning of Price Control.
the price of a commodity.
Maximum Price 5.7.2. explain the meaning of Maximum Price control occurs Let students imagine a market situation in
Control Maximum Price Control. when a government fixes price which the price of a commodity is fixed below
below the market (equilibrium) the equilibrium price.
price to favour consumers.
Ask students what will happen to the new
quantities supplied and demanded. Use a
diagram for illustration to enhance
explanation.
Problems of 5.7.3. identify the problems that Problems (effects) of a maximum The use of a diagram will bring out problems; Why are maximum prices fixed
maximum price emanate from a maximum price control. e.g. the problem of a shortage i.e. and excess for commodities by legislation?
control price control. of quantity demanded over quantity supplied What are the problems of such a
and its effects. legislation?
Minimum Price 5.7.4. explain the meaning of Minimum Price Control occurs Let students imagine a market situation in With the aid of examples and
Control minimum price control. when a government fixes by which the price of a commodity is fixed above appropriate diagrams, examine
legislation the price of a the equilibrium price. the economic implications of the
commodity above the market Marketing Board fixing a
(equilibrium) price to favour Ask students what will happen to the new producer price above the
suppliers. quantities supplied and demanded. Use a equilibrium price.
diagram for illustration to enhance
explanation.
57
SECTION 1:
THE THEORY OF PRODUCTION
1. understand the meaning of production and productivity and the factors affecting productivity in Agriculture and Industry..
2. appreciate the relevance of various time periods in production and the operation of the Law of Diminishing Returns.
3. understand the concepts of Returns to an Input, Returns to Scale and the factors determining the size of the firm.
4. recognize the difference between Location and Localisation of Industries and their advantages and disadvantages.
5. appreciate the difference between Specialisation and Division of Labour and their advantages and disadvantages
6. understand the concepts of Labour and Capital Intensive Methods of Production and how a choice is made between them.

ACTIVITIES
UNIT 1:
THE CONCEPT
OF PRODUCTION 1.1.1. explain the meaning of the Production is the transformation of existing Teacher to lead students to appreciate that List four productive
term “Production”. resources into new products or services production involves using factors of activities.
production and transforming them into goods
and services. E.g. maize to kenkey.
a) Define the following:
1.1.2 explain the meaning of Meaning of TP, AP and MP. i) Teacher to provide data on MP, TP and
Total Product (TP), AP at various levels of employment of a i) marginal product
Average Product (AP) and variable input. Discuss the data with ii) average product
Marginal Product (MP) students and lead them to suggest iii) total product
definitions of the concepts.
1.1.3 Calculate and plot TP, AP Calculation and plotting of TP, b) Explain how they are
and MP on a graph sheet AP and MP ii) Ask students to plot the data on a calculated.
graph sheet.
Productivity 1.1.4 explain the meaning of Productivity is the efficiency of resources in Teacher to emphasize that productivity of a
productivity. production. It is measured in terms of factor is measured by the Average product of
output per unit of a factor of production e.g. the factor.
labour productivity and land productivity.
Productivity In 1.1.4 explain how productivity in Some factors affecting productivity in Guide students to list the factors affecting Explain four ways for
Agriculture agriculture can be improved. agriculture are: productivity in agriculture and explain how the improving agricultural
i) level of technology factors affect productivity in agriculture. productivity in your
ii) quality of land and other inputs country
Factors Affecting 1.1.5. explain how productivity in Some factors affecting productivity in Guide students to list the factors affecting Show how productivity
Productivity in industry can be improved. industry are: productivity in industry and explain factors in industry can be
Industry i) level of technology affecting productivity. raised.
ii) amount of capital per head
58
ACTIVITIES
TIME PERIODS IN 2.2.1. describe four time periods in The time periods are the: Through a class discussion help students List and explain the various time
PRODUCTION production to identify the features of the various time periods in production.
i) Market Period periods.
ii) Short-run
iii) Long-run NOTE: Teacher to explain to students
iv) Very Long-run or that a firm‟s decisions and objectives are
Longer – run or Secular taken within a time period. For example,
period a decision may be taken to keep a firm in
the short run open but close it in the long
run.
SHORT RUN 2.2.2. explain how the Law of The Law of Diminishing Returns: i) Refer students to the tables and With the help of a diagram or
PRODUCTION Diminishing Returns operates curves of TP, AP and MP used earlier table explain the following terms
THEORY in the short run. i) increasing marginal and lead them to identify the sections
returns to a variable indicating increasing, constant, a) Increasing returns
The Law of factor diminishing and negative returns b) Constant returns
Diminishing Returns ii) constant marginal c) Diminishing returns
(The Law Of returns to a variable d) Negative returns
Variable factor
Proportions) iii) diminishing marginal
returns to a variable
factor
iv) negative marginal
returns to a variable
factor
2.2.3. describe the relationship TP at any level of employment is ii) Lead students to identify the
between MP, TP and AP. the sum of the marginal relationship between the various
products up to that level of concepts
employment i.e. TPn = n NOTE: Use arithmetic to explain the
MP; relationship between AP, TP and MP.
i=1
AP = TP where V
V
is quantity of the variable input.
59
ACTIVITIES
ECONOMIC AND 2.2.4. explain the economic and Stage I: Uneconomic: i) Use arithmetic to explain that when the a) Draw a diagram to
UNECONOMIC uneconomic stages of AP of the variable input is rising, the MP show the three stages
STAGES OF production in the short run At this stage there is too of the fixed input is negative. of production in the
PRODUCTION much of the fixed factor. Its short run.
marginal product is ii) Students to refer to the TP, AP and MP
negative. diagram used earlier. Lead them to mark b) From the diagram
the various stages in the diagram and explain the economic
Stage II: Economic: explain why stages I and III are and uneconomic
uneconomic and stage II is economic stages of production.
The fixed input and the
variable input are in the
right proportions.
Their marginal products are

positive.
Stage III. Uneconomic:
UNIT 3 There is too much of the

LONG RUN variable input. Its marginal
PRODUCTION product is negative
THEORY
The Scale Of 2.3.1 explain the meaning of the Scale of Production refers Teacher to present the class with two different Present an imaginary
Production Scale of Production. to plant size or capacity examples of production units – one with more fixed production unit in
which is defined by the inputs than the other. The firm with more fixed agriculture or industry,
amount of those inputs inputs has a larger scale or capacity than the describing the scale of
which are variable only in other. production of your firm.
the long run.
Teacher to guide students to give examples of
firms with different scales of production in
agriculture and industry.
60
UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING ACTIVITIES EVALUATION
UNIT 3: (CONT’D)
Returns to Scale 2.3.2. explain that the law of A change in the scale of production Students through discussions should Explain five economies
returns to scale is a long results in: compare the rates of change in the volume of scale enjoyed by a
run phenomenon. of inputs and the rates of change in the firm which is growing in
i) increasing returns to scale volume of output to identify increasing, size.
due to economies of scale constant and decreasing returns to scale.
like financial and technical
economies being enjoyed.
ii) constant returns to scale

where there are no
economies or diseconomies
of scale.
iii) decreasing returns to scale

where the firm experiences
managerial diseconomies.
61
ACTIVITIES
LOCATION OF
INDUSTRIES
2.4.1. explain the meaning of Meaning of location of industries Students to mention some industries and
location of industries. where they are sited. Teacher should
emphasise this as location of industries.
2.4.2. explain factors that Examples of factors that determine Teacher should lead students in a Explain the factors that
determine the location of location of industries are: discussion to identify factors determining influence the location of the
industries. location of specific industries in the following industries:
i) raw materials country.
ii) market. i) A sawmill
factors affecting productivity in ii) A brewery
Agriculture and Industry. Teacher to iii) An aluminium smelter
explain that location of industries aims at iv) A food processing factory
choosing a site that would reduce cost
and increase profits.
62
ACTIVITIES

Through a class discussion, lead students Give reasons why you would
Reasons Why 2.4.3. explain why urban centres Some reasons are: to explain that urban centres have more support the citing of industries
Industries Tend to attract more industries than i) large market location advantages that reduce cost of in rural areas.
be Sited in Urban rural areas. ii) availability of raw materials production, given the nature of industry.
Centres
Students to brainstorm to bring out

Reasons Why 2.4.4. explain why industries should Some reasons are: reasons why industries should be located
Industries Should be sited in rural areas. i) check rural – urban migration in rural areas.
be Located in Rural ii) high rural earnings
Areas
Localisation 2.4.5. explain the meaning of Meaning of localisation of industries Lead students to identify a specific area
(Concentration) of localisation of industries. like Tema, Kumasi or Takoradi. Ask them
Industries to make a list of industries producing
similar products in the area.
2.4.6. explain the advantages and Advantages (external economies) and Students to brainstorm to bring out Describe the advantages and
disadvantages of localisation disadvantages (external diseconomies) advantages and disadvantages of three disadvantages of
of industries. of localisation of industries. localisation of industries. localisation of industries.
a) some advantages are:

i) reservoir of skilled labour
ii) emergence of subsidiary
firms
Some disadvantages are:

i) environmental pollution
ii) mass unemployment
63
ACTIVITIES
SPECIALISATION 2.5.1. explain the difference The difference between specialisation and Let students identify production activities Explain the difference between
AND DIVISION OF between specialisation and division of labour in which people have specialised, e.g. specialisation and division of
LABOUR division of labour dressmaking and driving. Find out why labour.
people specialise in such vocations. From
the discussion ask students to define
specialisation. Next ask students to
indicate the distinct processes into which
dressmaking can be divided. Guide them
to understand that when individuals or
groups are engaged each on a particular
process, there is division of labour.
Field Trip:
Advantages of 2.5.2. explain the advantages of a) Some advantages of Arrange an excursion to a factory to
Specialisation and specialisation and division specialisation are: observe specialisation and division of
Division of Labour of labour in increasing i) employment of labour in labour.
productivity. jobs for which it is best
suited Students to brainstorm and bring out the
advantages of specialisation and division
ii) development of new types of labour.
of craftsmen like designers.
b) Some advantages of division

of labour are:
i) development of skill and

dexterity among workers.
ii) use of machinery.
Disadvantages of 2.5.3. explain the disadvantages a) Some disadvantages of Students to discuss the disadvantages of What are the advantages and
Specialisation and of specialisation and specialisation are: specialisation and division of labour. disadvantages of
Division of Labour division of labour and how i) greater risk of specialisation and division of
they can affect productivity unemployment labour?
ii) greater dependence of
workers on one another.
64
ACTIVITIES
UNIT 5: (CONT’D) The student will be able to: c) Some disadvantages of division of
labour are:
DISADVANTAGES
OF i) greater risk of
SPECIALISATION unemployment
AND DIVISION OF
LABOUR ii) increased monotony of
work and boredom.
UNIT6:
LABOUR 2.6.1. describe the factors The factors determining the choice of Let students think of a firm with a given Explain the factors that
INTENSIVE AND determining the choice method of production are: capital labour ratio and imagine that the influence the choice between
CAPITAL between labour intensive price of labour is raised. Lead them, with labour intensive and capital
INTENSIVE and capital intensive i) relative marginal productivities the help of the equations, to discuss what intensive techniques.
METHODS OF techniques of inputs. will happen to the capital labour ratio.
PRODUCTION ii) relative input prices. Choice is
made to minimise costs.
Use MPk = MPL

PK PL
OR
MPk = PK
MPL PL
to explain.
UNIT 7:
2.7.1. explain that the technology The appropriateness or relevance of Ask students to consider whether input Would capital – intensive
APPROPRIATE that is appropriate to one technology in its application depends on: prices and input productivity level would technology in agriculture be
TECHNOLOGY IN area or country may not be be the same every where. Discuss to appropriate everywhere in
THE LDCs appropriate to another area or i) resource conditions arrive at the conclusion that what is best Ghana? Discuss.
country. determining their relative for one area may not be best for another.
prices in the area.
ii) relative productivities of the
inputs in the area.
65
SECTION 2:
PRICES OF FACTORS OF PRODUCTION

General Objectives: The students will:
1. appreciate the factors that determine the demand for a factor of production.
2. appreciate the factors that determine the supply of a factor of production.
3. understand simple algebraic equations of demand and supply and their solutions.
4. understand the meaning of various forms of price control and why governments intervene to regulate prices.
5. be aware of other methods of determining prices, including Socialist Pricing.

ACTIVITIES
FACTORS 1.1.1. explain the factors Factors determining the demand for a Assist students through a whole-class As a worker what can you do
DETERMINING THE determining the demand factor of production. discussion to bring out factors which to increase the demand for
DEMAND FOR A for a factor of production. i) They include the price of the determine the demand for a factor of your services?
FACTOR OF factor production.
PRODUCTION ii) Demand conditions (Marginal
Revenue Productivity which Use every day examples such as a tailor
depends on the price of and his workers; a woman running a chop
output and the MPP of the bar.
factor.)
1.1.2. explain the meaning of a Meaning of a change in demand for a Explain to students that a change in the
change in demand for a factor of production. price of a factor changes the quantity
factor of production demanded, but a change in the demand
conditions changes the demand for the
factor.
The use of graphical representation will

enhance students‟ understanding of a
change in demand for a factor of
production.
66
ACTIVITIES
FACTORS 1.2.1. explain the factors Factors determining the supply of a Use whole – class discussion to bring out What factors determine the
DETERMINING THE determining the supply of a factor of production. the factors which determine the supply of supply of a factor of
SUPPLY OF A factor of production. a factor of production. Use everyday production?
FACTOR OF They include:- examples to enhance students‟
PRODUCTION understanding of each factor under
i) the price of the factor discussion.
ii) supply conditions, such as
period of education; conditions
of service.
A Change In the 1.2.2. explain the meaning of a Meaning of a change in the supply of a Explain to students, with examples, that a
Supply of a Factor change in the supply of a factor of production. change in the price of a factor changes
of Production factor of production. the quantity supplied, but a change in
supply conditions changes the supply of
the factor.
The use of a graphical representation will

enhance students‟ understanding of a
change in supply of a factor of production.
67
SECTION 3
THE THEORY OF COSTS AND REVENUE
1. understand various cost and revenue concepts and their relationships

2. recognize the characteristics of the various market structures.
3. appreciate the objectives of firms and understand how firms attain equilibrium in various market structures.
4. understand the concept of price discrimination and the conditions under which it is possible and profitable.

ACTIVITIES
THE CONCEPT OF 3.1.1 define cost of Cost is the amount of money that must Mention some commodities and guide 1. Define cost of
COST OF production. be paid for the inputs (whether owned students to identify the items that would production.
PRODUCTION by the producer or acquired from go into their cost of production.
others) used to produce a quantity of a 2. Explain ”explicit
commodity. * Teachers should not mistake “define” costs” and “implicit
to mean rote learning by students cost”.
Difference between 3.1.2 differentiate between Private/Accounting costs are costs Students to consider production in a firm 3. Giving examples,
private/accounting private/accounting cost (both explicit and implicit) from the and be led to identify the private cost and distinguish
cost and and social/opportunity viewpoint of the individual producer. social cost of production. between private
social/opportunity cost. Social/Opportunity Costs are costs from cost and social
cost. the viewpoint of the entire economy. cost.
Social costs are the private costs plus
any additional costs incurred by society
in respect of a private person‟s
production.
68
ACTIVITIES
COST CONCEPTS
IN PRODUCTION 3.2.1 identify short run costs In the short run some costs are fixed, Students to mention a firm they know and i) What are short run
as fixed costs and others are variable. be guided to identify the fixed costs and costs?
variable costs. variable costs of production in the firm.
ii) Define the ff:
Teacher to guide students to use the a) Total Cost
3.2.2 define Fixed cost, Fixed costs are the expenses on the information above to calculate the various b) Total fixed cost
Variable cost, Total acquisition of fixed inputs. costs of production in the firm. c) Total variable cost
cost, Total fixed cost, d) Average cost
Total variable cost, Variable costs are the expenses on the e) Average variable
Average cost, Average acquisition of variable inputs. cost
variable cost, Average f) Average fixed cost
fixed cost and Total cost is the sum of total fixed cost g) Marginal cost.
Marginal cost. and total variable cost.
Average cost is the cost (both fixed and

variable) per unit of output. It is
measured as TC
Q
i.e. total cost divided by quantity
produced.
Average fixed cost is expenditure on the

fixed inputs per unit of output. It is
measured as, TFC
Q
Average variable cost is expenditure on
the variable inputs per unit of output. It
is measured as TVC
Q
Marginal cost is the change in total cost
or total variable cost per unit change in
TC
output. It is measured as =
Q
TVC
Q
69
ACTIVITIES

COST CONCEPTS
IN PRODUCTION 1. Draw a diagram showing
3.2.3 explain the relationship TC = TFC + TVC i) Teacher to do a recap on short run TFC, TVC and TC.
between various cost AC = AFC + AVC cost curves.
concepts. AC = TC ii) Guide students to prepare a 2. Draw a diagram showing
Q schedule of TFC and TVC at AFC, AVC. AC and MC.
AVC = TVC various levels of output.
Q iii) Guide students to calculate:
n a) Total Cost (TC)
 MCi = TVCn b) Average cost (AC)
i =1 c) Average Fixed Cost (AFC)
d) Average Variable Cost (AVC)
3.2.4 construct schedules Construction of Cost Schedules Teacher to assist students to construct With illustrations, describe the
and the corresponding and Curves schedules of the various cost concepts, showing shape of the following:
curves to explain the how they behave as output changes. a) A total cost curve
various cost concepts b) A total fixed cost
and how they behave Next teacher to help students to graph the data curve.
as output changes. in the schedules and describe the shape of the c) A total variable cost
various curves. curve
d) An average cost
Explain the relationships between the various curve
cost curves, emphasizing how the curves are e) An average variable
related. cost curve
f) An average fixed cost
curve
g) A marginal cost
curve.
70
ACTIVITIES
UNIT 2 (CON’T) The student will be able to:

COST CONCEPTS
IN PRODUCTION
Long Run Cost of 3.2.5 explain long run costs of Long run costs relate to production Tell students and help them to understand the 1) Explain the concept
Production production. when plant size or capacity is variable. following: of the long run in
i) The long run is a planning period over Production.
The long run average cost curve is an which a producer plans to change his
envelope of several short run average plant size (vary his fixed factors) to 2a) Draw the “envelope
cost curves. produce at the lowest possible cost. curve”.
b) What do the various
ii) The long run, then, is made of a sections of the
series of possible short run plant curve illustrate?
sizes.
iii) In the long run the producer chooses
the short run plant size that enables
him to serve his market most
efficiently (i.e. to reap whatever
internal economies of scale are
possible)
iv) The negatively sloping section of the
long run AC curve illustrates internal
economies of scale (increasing
returns) and the positively sloping
section illustrates internal
diseconomies scale (decreasing
returns). The minimum point of the
long run AC illustrates constant
returns.
Internal 3.3.1. describe internal a) Some internal economies in Students to brainstorm and come out with the
Economies And economies and internal agriculture are: advantages and disadvantages of large scale
Diseconomies In diseconomies in farming over small scale farming.
Agriculture agriculture. i) financial economies
ii) technical economies
b) Internal diseconomies of
scale are usually
managerial diseconomies.
71
ACTIVITIES
Internal 3.3.2 describe internal a) some internal economies in Students to discuss possible advantages and Explain four factors that limit the
Economies And economies and internal industry are: disadvantages of large-scale manufacturing growth of a firm.
Diseconomies In diseconomies in industry over small scale manufacturing
Industry industry. i) research and development industries. Help them to classify their points
under research, marketing economies etc.
ii) marketing and managerial diseconomies.
b) some internal diseconomies in

industry are in the area of
management.
Factors
Determining the 3.3.3 explain why some firms Some factors are: Students to make a list of firms in their locality
Size of Firms. are larger than others. i) size of the market and group them into small and large scale
ii) availability of capital. firms. Whole-class discussion to identify why
some firms are larger than others.
72
ACTIVITIES
REVENUE
CONCEPTS 3..3.1 define average The meaning of Average Guide students through a brainstorm to come out with
revenue, marginal Revenue, Total Revenue and the meanings of the revenue concepts.
revenue and total Marginal Revenue
revenue.
3.3.2 show how the average Graphical representation of i) Teacher to assume a perfect and an imperfect market
revenue, marginal average revenue, marginal situation in which any quantity of the commodity can be
revenue and total revenue and total revenue. bought or sold at a constant price. Guide students to
revenue are construct a schedule of total revenue at different
represented quantities sold.
diagrammatically.
3.3.3 explain the relationship Relationship between the ii) Guide students to calculate average revenue (revenue 1) Define the following concepts:
between the various various revenue concepts. per unit) at each quantity, and guide them to realize that i) Average Revenue
revenue concepts. TR = Px Q AR is the same as price. ii) Total Revenue
at each sales level. iii) Marginal Revenue
AR = TR
Q n 2) The following table represents
TRn =∑MR the revenue situation in a imperfect
MR = TR i =1 market
Q
Price (GH¢) Quantity

Next guide students to Students to be assisted to realize that in the perfect
100 50
calculate MR; i.e. the change market AR=MR
90 80
in TR per unit change in iii) Teacher to assume an imperfect market situation,
80 120
quantity sold ie. one in which price is reduced to increase sales. Guide
70 150
students to construct a schedule of TR, AR and MR and
60 170
MR = TR assist them to realise that in an imperfect market price
50 180
Q at each sales level equals AR but higher than MR.
40 190
30 200
* For evaluation, teacher to give an example of a perfect
a) Calculate the TR and the MR at
market as well
each level of sales.
73
ACTIVITIES
UNIT 3 (CONT’D) The student will be able to: Graph the data on AR, MR and TR in the two (b) Graph the AR, TR and
different market situations. MR data.
REVENUE iv) Discuss the graphs with students
CONCEPTS and guide them to understand (c) Comment on the shape
that in the perfect market, the AR of the TR curve.
curve is horizontal (parallel to the
quantity axis) and coincides with
the MR curve. The TR curve
would be a straight line with a
positive slope starting from the
same point as the AR curve. The
slope of the TR curve measures
the AR = MR.
In the imperfect market the AR curve slopes

negatively. MR curve also slopes negatively and
has a slope twice that of AR. The TR curve is an
inverted U
UNIT 4
THE CONCEPT 3.4.1 explain the concept of a The market is an arrangement or Teacher to guide students in a discussion to Compare the characteristics of a
OF A MARKET market. an organization for bringing understand that the market need not be at one perfectly competitive market with
buyers and sellers in contact with place. those of a monopolistically
one another. competitive market.
Market Structures 3.4.2 explain the characteristics Various Market Structures – Teacher to guide students in a discussion to
of the various market Perfect Competition, Monopoly, establish some criteria for distinguishing between
structures. Imperfect Competition, market structures. The criteria must relate to.
(Monopolistic Competition) and (i) the number of operators in the market. (ii) the
its characteristics. nature of the competition among
them, whether the product is
homogeneous or heterogeneous
(iv) the revenue situation of the sellers etc.
After this teacher to ask students to research and

list the characteristics of the various market
structures. A class discussion should be held to
get students to understand the characteristics.
74
ACTIVITIES
UNIT 4 (CONT’D) The student will be able to: .

THE CONCEPT
OF A MARKET
Advantages and 3.4.3 list and explain the The advantages and Hold a whole-class discussion to bring out the Compare the advantages and
Disadvantages of advantages and disadvantages of advantages and disadvantages of the various disadvantages of perfect
Various Market disadvantages of the (i) Perfect Competition market structures. competition and monopoly.
Structures various market (ii) Monopolistic
structures. Competition
(iii) Monopoly
Sources of 3.4.4 identify the sources of Sources of Monopoly Power Students to brainstorm to identify the factors that How do monopolies arise?
Monopoly Power monopoly power. 1. Market Franchise would make a firm become a monopolist.
2. Legal Monopolies
Students to brainstorm to identify the means by
3.4.5 identify and explain the Control of Monopoly which a monopoly can be controlled. How can monopoly power be
means by which a 1. Government intervention controlled?
monopoly may be etc
controlled.
UNIT 5
OBJECTIVES OF 3.5.1 identify and explain Some objectives are: Teacher to guide students in a discussion to Comment on the realism of the
FIRMS various objectives of firms, (i) Sales revenue realize that how much a firm would produce profit maximizing assumption in
including profit (ii) Increase of market depends on its objective in production. Next, the theory of the firm.
maximization. share. Since all firms aim at teacher to help students to appreciate the
making some profit, we simplifying assumption that all firms aim at
assume profit maximization maximizing profit. Let students appreciate that
as the main objective. the realism of the profit maximizing assumption
lies in the fact that in the long term, every firm
must make some profit to remain in production.
75
ACTIVITIES
The Equilibrium of a 3.5.2 explain the idea of the The concept of the equilibrium Engage students in a class discussion to With the aid of a diagram explain
Firm equilibrium of a firm. of a firm. understand that the equilibrium of a profit that the equality between MC and
maximizing firm (whether the firm would produce MR is not enough for equilibrium.
3.5.3 explain and illustrate The conditions for the one more unit or not) depends on two conditions
the short-run equilibrium of : being satisfied:
equilibrium of a firm (i) a perfect competitor (i) MC = MR
under perfect (ii) a monopolistic (ii) MC would become greater than MR if
competition , competitor one more unit is produced.
monopolistic competition (iii) a monopolist Draw the diagrams representing the short run
and monopoly. equilibrium of a firm under:
(i) Perfect Competition
(ii) Monopolistic Competition and
(iii) Monopoly and
(iv) Discuss with the class and help them
to understand why each firm would not
produce any more or less than
indicated in the diagram.
The Loss
Minimizing Firm 3.5.4 explain that in the short- The Loss Minimizing firm. Draw a diagram of a perfect competitor in State and explain the
run, if a profit-motivated In the short run the loss equilibrium making losses - ie P<AC>AVC and circumstances in which a loss
firm makes losses, it would making firm must cover at discuss with the class, helping them to understand making firm would continue in
achieve an equilibrium, least its variable costs to that the worst situation the firm would tolerate in the production.
minimizing the losses. remain in production- ie short run is when P=AVC. When P<AVC it would
P>AVC in equilibrium. be better for the firm to shut down.
76
ACTIVITIES
The Equilibrium of an
Industry 3.5.5 explain the concept of The Concept of the (i) Draw a diagram of the short –run Compare with the aid of diagrams
the equilibrium of an Equilibrium of an Industry. equilibrium of the representative firm the process by which the a long-run
industry. under perfect competition earning industry equilibrium is attained
abnormal (supernormal) profit. Discuss under perfect competition with that
3.5.6 explain how An industry is in equilibrium with students what would happen to the under monopolistic competition.
(a) a perfectly competitive when the firms in the industry number of firms, industry supply, price
industry make just normal profit and and the profit situation of firms in the
(b) a monopolistically there is no tendency for the long run.
competitive industry number of firms to change.
would attain equilibrium in the (ii) Draw another diagram of the short run
long run. equilibrium position of a firm under
monopolistic competition, making
abnormal profit.
Discuss with students what would

happen to the number of firms in the
industry, the demand for a particular
firm‟s product and the profit situation of
such a firm in the long-run.
UNIT 6
3.6.1 explain the meaning of There is price discrimination For an understanding of the meaning of price Explain, with examples the
PRICE price discrimination, when identical units of a discrimination, discuss with the class why the meaning of price discrimination.
DISCRIMINATION giving examples. commodity produced by the following are not cases of price
same firm at the same unit discrimination:
cost are sold at different (i) Different charges at the V.I.P
prices to different consumers. Stand and the Popular Stand
Examples: The Water for a football match at a
Company charges different stadium.
prices for a gallon of water
supplied to domestic and (ii) Different fares for a First class
commercial users. seat and an Economy class
Also the Electricity Company seat in a plane.
practises price discrimination.
77
ACTIVITIES

PRICE
DISCRIMINATION
When Price 3.6.2 explain the conditions Conditions under which Price Brainstorm with students to identify Under what conditions is it
Discrimination Is under which price Discrimination is possible, conditions under which it would not be possible to practice price
Possible discrimination is possible to charge different prices for discrimination?
possible. i) The seller must be a monopolist. identical units of a commodity.
ii) The different parts of the

market must be
separable at little or
no cost.
iii) No possibility for resale.
iv) The price elasticity of Demand for

the good must be elastic in the
different markets but with different
degrees of elasticity.
When Price 3.6.3 explain when price Condition under which Price A class discussion to help students to Explain the circumstance
Discrimination Would discrimination would be Discrimination is profitable: understand the condition for profitability. under which price
be Profitable profitable. Start the discussion by assuming a discrimination would be
It is profitable when the marginal monopolist‟s market with two parts having profitable.
revenue in the two markets are different demand conditions.
equated to the Marginal cost.
78
SECTION 4
DISTRIBUTIVE TRADE

1. recognise the various methods of distribution and their problems.
2. appreciate the need for agencies of distribution.
3. understand the functions of wholesalers and retailers in distribution.
4. appreciate the problems in the distributive trade and understand their remedies.

ACTIVITIES

METHODS OF 4.1.1 identify the methods Methods of Distribution: Brainstorm with students to come out with
Debate
DISTRIBUTION of distribution.  Price System methods of distribution. Assist them to
As a method of distribution
 Rationing demonstrate distribution of a commodity by
rationing is better than the
(i) the price system
price system.
(ii) rationing.
Problems of Distribution 4.1.2 identify the problems Problems of distribution. Engage students in a whole-class discussion to
of distribution. identify the problems of distribution by
(i) the price system
(ii) and rationing.
UNIT 2 (iii)
4.2.1 identify the agencies Agencies of Distribution, ie Guide students through a discussion to mention How do the following agencies
AGENCIES OF
of distribution. (i) Private the agencies of distribution. Lead them through contribute to the distribution of
DISTRIBUTION
(ii) Government a discussion to discover the roles each one goods and services
(iii) Co-operatives plays. a) private individuals
b) government
c) co-operatives?
Channels of Distribution 4.2.2 identify the channels Channels of Distribution:- Whole-class discussion is recommended to
of distribution. Producer, Wholesaler, Retailer. identify the channels of distribution and to let
students appreciate the role of middlemen in
distribution.
79
ACTIVITIES

AGENCIES OF
DISTRIBUTION 4.2.3 explain the functions of Functions of the wholesaler to Guide students through a group Debate
the wholesaler to the the manufacturer and to the discussion to bring out the functions. Wholesalers, retailers and
Functions of the manufacturer and to the retailer. One group to do functions of wholesaler market queens are not useful
Wholesaler retailer. to the manufacturer and another group in the distribution trade.
to do functions of the wholesaler to
retailer.
Functions of the 4.2.4 explain the functions of Functions of the retailer to the Guide students through a discussion to
Retailer the retailer to the (i) consumer come out with the functions.
consumer and the (ii) wholesaler Assign tasks to groups.
wholesaler. Group(s) 1 : functions of the retailer to
the consumer
Group (s) 2: functions of the retailer to
UNIT 3 the wholesaler.
PROBLEMS OF Groups to present their answers on the
DISTRIBUTION board for discussion.
Problems of 4.3.1 identify the problems of Problems of internal distribution Lead students through a whole class a) What problems do farmers
Internal internal distribution of of agricultural produce in Ghana, discussion to bring out the problems of face in the distribution of their
Distribution of agricultural produce in eg. lack of ready markets. internal distribution of agricultural farm produce in the country?
Agricultural Ghana produce in Ghana.
produce b) How can the problems be
solved?
Problems of 4.3.2 identify the problems of Problems of internal distribution - do – a) What problems do industrial
Internal internal distribution of of industrial products in Ghana. producers in Ghana face in the
Distribution of Industrial products in distribution of their products?
Industrial Products Ghana. .
b) How can these problems be
solved?
Remedies to the 4.3.3 suggest remedies to the Solutions to the problems of Whole – class discussion is
Problems of problem of internal internal distribution of agricultural recommended to bring out the remedies
Internal distribution of agricultural produce in Ghana. to problems.
Distribution of produce
Agricultural
Products
- do-
Remedies to the 4.3.4 suggest remedies to the Solutions to the problems of
Problems of problem of internal internal distribution of industrial
Internal distribution of industrial products.
Distribution of products.
Industrial Products
80
SECTION 5
THE THEORY OF CONSUMER BEHAVIOUR
1. understand various utility concepts and their relationships.

2. understand the concept of consumer equilibrium.
3. appreciate the relationship between marginal utility and the demand curve.
4. understand the use of indifference curves in explaining the Income and Substitution Effects of a change in price.
5. understand why normally, price varies inversely with the quantity of a commodity demanded by an individual consumer.

ACTIVITIES
THE UTILITY
CONCEPTS AND THE
LAW OF DIMINISHING
MARGINAL UTILITY
Meaning of TU, AU 5.1.1 explain the meaning of The Law of diminishing MU Lead students to generate data on the (a) State the law of
and MU TU, AU and MU chalkboard to represent the Law of diminishing marginal
Diminishing MU. utility.
Calculation of MU, AU 5.1.2 calculate MU, AU and TU The behaviour of TU and AU (i) From the data generated in (b) Explain the relationship
and TU and show their based on the behaviour of MU. 5.1.1, calculate TU and AU at between MU, TU, and
relationships. various levels of consumption. AU.
(ii) Students should graph the data
on MU, TU and AU.
(iii) Teacher to lead students to
identify the relationships
between the curves.
81
ACTIVITIES

EQUILIBRIUM OF
A CONSUMER
Conditions for 5.2.1 explain the conditions for (i) Single commodity case: Teacher to help students to appreciate that in State and explain the
Consumer consumer equilibrium. (a) When it is assumed that making a purchase a consumer exchanges the condition for the equilibrium
Equilibrium utility is measured in utils: utility of the money he pays (the price) for the of a consumer
The equilibrium condition is utility of the last unit purchased (the marginal (i) where the consumer
that the MU of the utility) buys only one
commodity x must be equal Ask students to consider what would happen to commodity.
to the utility of the price of x the quantity purchased when the (ii) where the consumer
– ie MUX = PX (i) utility of the price is smaller than buys two commodities.
(b) When it is assumed the MU of the commodity;
that utility is measured (ii) utility of the price is greater than the
in terms of money: commodity.
The equilibrium Then ask students to state when the consumer
condition is that the would be in equilibrium.
marginal utility of the
commodity x must be
equal to the price of x,
ie MUX = PX
(ii) Two Commodities case. Use an arithmetic illustration to explain the logic “If a consumer is to attain a
The Equilibrium condition: of the equilibrium condition in the two new position of equilibrium
Either the marginal commodities case. as the price of a commodity
utilities of the commodities must changes, the law of
be proportional to the prices of diminishing marginal utility
the commodities ,
= must operate”. Explain.
ie MUX PX
MUY PY
or the marginal utility per unit of
expenditure must be the same
for every commodity consumed
ie
MUX
PX
= MU PY
Y
82
ACTIVITIES
UNIT 2 (CONT’D)
EQUILIBRIUM OF A The student will be able to:
CONSUMER
The Paradox of Value 5.2.2 explain why a commodity The paradox of value In a discussion lead students to use the Explain why a piece of
which is necessary for life conditions for the equilibrium of a consumer diamond sells at a higher
like water sells at a lower in the single commodity case to explain the price than a bottle of water.
UNIT 3 price than a luxury good paradox of value.
THE EFFECT OF A like diamonds.
CHANGE IN PRICE ON
CONSUMER
EQUILIBRIUM 5.2.3 explain why a consumer The effect of a change in price Students should imagine a consumer buying 1. Use the marginal utility
will buy more of a on the equilibrium of a consumer. various quantities of commodities at various theory to explain why a
commodity at a lower prices. Assume a change in the price of consumer buys less of a
price. one of the commodities and lead students to commodity when the price
discuss how the consumer will react. rises.
Use the marginal utility theory to reason with
students to understand why the operation of 2. What accounts for the
the Law of Diminishing Marginal Utility inverse relationship between
explains the inverse relationship between price and quantity
price and quantity demanded. demanded?
Consumer Surplus 5.2.4 explain the meaning of Consumer Surplus. Ask a student to draw a demand curve and With the aid of a diagram,
Consumer Surplus. another student to draw a marginal utility explain consumer surplus.
curve on the chalkboard. A third student
should insert a price level on both diagrams.
Lead students to use the diagrams to
explain consumer surplus.
83
ACTIVITIES
SUBSTITUTION 5.4.1 explain that a change The substitution effect of a fall in Discuss with students the concept of a substitution
AND INCOME in price has a the price of a commodity. effect and help them to appreciate the additional
EFFECTS substitution effect on quantity demanded of a commodity whose price
the quantity demanded falls relative to prices of its substitutes.
of a commodity.
5.4.2 explain that a change The income effect following a fall Discuss with students and help them to appreciate With reference to the income
in price has an income in the price of a commodity. the idea of an income effect of a fall in price. and substitution effects
effect on the quantity of NOTE: explain why normally a
a commodity (i) The combined substitution and consumer buys more of a
demanded. income effects determine the change commodity at a lower price.
in quantity demanded.
(ii) Substitution effect is stronger in the
case of an inferior good which does
not fall within the category of Giffen
goods.
Condition for 5.4.3 explain the condition (i) Consumer equilibrium – Teacher to provide a diagram on the chalkboard Using indifference curves
Consumer for consumer where the budget line is and help students to identify and explain the draw a diagram to show
Equilibrium Using equilibrium, using tangential to the highest equilibrium. consumer equilibrium.
Indifference indifference curves. indifference curve.
Curves (ii) Meaning of the tangency of
a budget line and an
indifference curve.
5.4.4 explain how the The substitution and income Help students to use indifference curves and “Price effect is the sum of a
indifference curves effects of a change in the price of budget a lines to show the income and substitution substitution effect and an
analysis is used to a commodity. effects of a change in price on a consumer‟s income effect”.
illustrate substitution equilibrium position. Explain the statement, with
and income effects of a Note: Do not treat Price Consumption Curve the aid of an illustration.
price change. and Income Consumption Curve
84
SECTION 6
THE NATIONAL INCOME ACCOUNTING AND DETERMINATION

General objectives: The students will:
1. understand the circular flow of the National Income and appreciate the various methods of measurement
2. understand various National Income concepts and their relationships.
3. appreciate the uses of National Income data and their limitations.
4. understand the meaning and components of aggregate expenditure.
5. understand the concept of equilibrium national income
6. understand how to calculate the multiplier.
7. recognise the distinction between Economic Growth and Economic Development.

ACTIVITIES
THE CONCEPT OF
THE NATIONAL 6.1.1 define and explain the The income (wealth) that accrues from the Discuss with students to bring out the Define and explain the
INCOME concept of the National contribution of the nation‟s factors of important aspects of the definition: the national income.
Income. production to economic activity during a flow of:
year. (i) Income or wealth the flow of
goods and services
(ii) Income from contribution to

economic activity
(iii) Contribution from the

nation‟s factors of production
only
(iv) Income during a year
The Circular Flow of 6.1.2 explain the circular flow of The Circular Flow of the National Income. Discuss with students a simple two- sector Explain and illustrate the
The National Income the National Income. (two sector model) (households and firms) model and help circular flow of the
them to understand that the income national income in a
received by households for supplying simple two –sector model.
factors of production to firms is spent on
production of equal value by firms – ie
income = expenditure = output.
85
ACTIVITIES

MEASUREMENT OF
THE NATIONAL
INCOME 6.1.3 explain the three methods The Incomes Method involves Teacher to emphasize to students that it is Describe the incomes
of measuring the national summing up wages and salaries, factor incomes which are added. method of measuring the
Methods of Measuring income interests, rents, profits and Teacher then to guide students to identify national income.
National Income proprietors‟ incomes. the particular income items to include.
The Output Method Discuss with students and help them to Explain
Output of the sectors is measured through understand that it involves measuring the (i) The final products
a census of production. output by the productive units in various method and the value-
sectors of the economy. added method of
Find out from them what the sectors are measuring the national
The Expenditure Method and how the output of the productive units income.
Involves microeconomic identity can be measured.
which estimates expenditure on GDP as C
NOTE:
+I +G +X - M
There are two variants of this method
(i) the Final Products Approach
and
(ii) the Value Added Approach
Use hypothetical examples to explain the
concepts of Final Products, Intermediate
Products and Value –added.
NOTE 1: Ghana uses the Output and Explain the expenditure

Expenditure approaches. method of measuring the
The components of national income.
expenditure are spelt out in
copies of the Economic Survey
of Ghana published by the
Statistical Services Department.
Discuss the components with
students and help them to
understand why particular items
are added or subtracted.
86
ACTIVITIES
UNIT 1 (CONT’D) The student will be able to: NOTE 2: Students to be guided to identify
MEASUREMENT OF the sectors that purchase the
THE NATIONAL nation‟s output : - the
INCOME households
sector, the business sector, the
government sector and the
foreign (rest of the world sector).
Problems of the
Various Methods of 6.1.4 explain the problems of the The problems of the various methods of Class discussion to identify the problems 1. How is the problem of
Measuring The various methods of measuring the National Income. of the various methods. double counting dealt with
National Income measuring the national in each method of
Problems of the Income Method include :
income. measuring the national
(i) Double Counting:
income?
Transfer incomes must be
excluded
(ii) Underestimation:
Fringe benefits must be
added to salaries and wages.
2. Outline the problems of
The problems of the Output Method
the various methods of
include :
measuring the national
(i) Double Counting: income.
Only final products should be
counted.
Intermediate products must
be excluded.
(ii) Underestimation:
Some producers underestimate their
production to avoid taxation.
The problems of the Expenditure Method
include:
(i) Smuggling, which affects the foreign
trade statistics.
(ii) Over-invoicing and

Under-invoicing also affect
the foreign trade statistics.
(iii) The difficulty in estimating
depreciation.
87
ACTIVITIES

MEASUREMENT
THE NATIONAL
INCOME
Some General Other problems of a general What general problems

Problems of nature (in the sense that they beset the national
Measurement relate to all the methods) include: income statistician?
(i) the quality of the statistical
services affects the quality of
the data.
(ii) Imputations – estimating the

value of types of non-market
production which are included
by convention, e.g.
subsistence production, owner
occupied houses.
UNIT 2
THE CONCEPT 6.2.1 define the Gross The market value of the output in a Teacher to emphasize in a discussion the following Distinguish between the
OF THE GROSS Domestic Product. country during a year. aspects of the definition: GDP and the GNP.
DOMESTIC (i) GDP relates to production in a country
PRODUCT (GDP)
(ii) GDP is measured at market values of
output.
The Gross 6.2.2. define the Gross National The market value of the annual Teacher to emphasize the following salient aspects
National Product Product. output of a nation – ie of the of the definition.
(GNP) nation‟s factors of production. (i) GNP relates to the output of the nation
ie the output of the nation‟s factors of
production both within and outside the
country.
(ii) It is measured at the market values of
output.
88
ACTIVITIES
Net National 6.2.3. define the Net National The market value of the net Teacher to emphasize that net output is gross output Why is it important to
Product (NNP) Product. output of a nation during a year. minus depreciation. set depreciation aside in
It is the GNP minus Students to be guided to use hypothetical data to national income
depreciation. calculate the net output of a firm and of a nation. accounting?
The Relationship 6.2.4. describe the relationship GDP + Net Factor Income from Teacher to explain concept of net factor income from
between between GDP, GNP and Abroad = GNP abroad. Explain how to obtain
GDP,GNP and NNP GNP – Depreciation = NNP. He can then use hypothetical data to demonstrate how the NNP from the GDP.
NNP to obtain NNP from GDP.
The Process of 6.2.5. convert GNP at current The process of deflating ie Teacher to use hypothetical data (income data and a) Using hypothetical
Deflating market prices (ie nominal dividing current income data by price indices) to demonstrate the process of deflating. current GNP data,
GNP data) into GNP at the price index of the year. explain the process
constant market prices (ie This is to be followed by a class discussion on the of
real GNP) advantage of constant GNP data over current GNP deflating.
data for purposes of comparison.
(b) Comment on the
usefulness of
deflated
GNP data.
89
ACTIVITIES
THE CONCEPT OF THE

LEVEL OF LIVING AND 6.3.1 differentiate between The level of living (welfare) is the Teacher to ask students to consider a place where What is the difference
THE STANDARD OF the level of living and level that has been attained – ie most people move from place to place on foot. He between the level of
LIVING the standard of living what is currently enjoyed. can then ask the students to discuss what the living and the standard
and use the terms It depends on the current level of aspirations are likely to be. of living?
appropriately. real per capita income. Next, students can think of a place where most
. people use bicycles. What are their aspirations
The standard of living is the living likely to be?
that people aspire to. The higher
the level of living, the higher the
standard of living ie the higher the
aspiration.
The Concept of Per Lead students to calculate per capita incomes of
Capita Income 6.3.2 define the per capita Per capita income (income per countries, using hypothetical national income and
income and use it in head of the population) is an population data. What is per capita
discussions. average income. It is the National income, and how is it
Income divided by the total measured?
population.
UNIT 4
USES AND
LIMITATIONS OF
NATIONAL INCOME 6.4.1 explain why one needs Some of the problems are: Teacher to guide students to identify and explain “The fact that the per
DATA AS BASIS FOR to be careful in drawing (i) Per capita income is an the reasons why one needs to be careful in capita income is
INTERTEMPORAL conclusions about level average, and it does not drawing conclusions about welfare on the basis of increasing is no proof
COMPARISON OF of living or welfare on provide any information differences in per capita income. that people are getting
LEVEL OF LIVING the basis of differences about how equal income better off”. Discuss.
in per capita income. distribution is.
(ii) Higher incomes may be the

result of higher prices.
(iii) The scope of non-market

production may be
changing.
90
ACTIVITIES
USES AND
LIMITATIONS OF 6.4.2 identify and explain the Some of the reasons are: Teacher to guide students to identify and explain The fact that one
NATIONAL INCOME AS reasons why (i) Per capita income, an reasons why one needs to be careful in comparing country has a higher per
BASIS FOR conclusions regarding average, hides differences levels of living in various countries on the basis of capita income than
INTERNATIONAL differences in the level in the distribution of income. differences in per capita income. another does not mean
COMPARISON OF of living between that the inhabitants are
LEVELS OF LIVING nations cannot be (ii) The exchange rate economically better off.
based simply on between the currencies Discuss.
differences in per of the two countries
capita income. may not reflect the
relative purchasing
power of the currencies
in their respective
countries.
(iii) Per capita income does

not give any information
about the structure of
production. One country
may be producing relatively
more military goods.
Other Uses of National 6.4.3 identify and explain (i) For planning the growth Students to research on other uses of national Explain the importance
Income Data other uses of National and development of the income data and discuss their findings in class. of national income data
Income data. national economy and to the government of a
its various sectors country.
(ii) For assessing the
contribution of a country
to the budget of an
international organization.
91
ACTIVITIES

AGGREGATE Teacher should approach the teaching of a) What is aggregate
EXPENDITURE: 6.5.1 (i.) explain the meaning of Total expenditure on a nation‟s Aggregate expenditure with the two-sector expenditure?
MEANING AND aggregate expenditure Output. model. Introduce government participation then b) Why is it important in a
IMPORTANCE exports and imports later to teach the Open market economy?
Economy.
(ii) explain the importance In a market economy, in the short Start from the observation that in the market
of aggregate expenditure run, it is total expenditure which economy a producer produces in anticipation of
determines how much output demand and reason with students to appreciate
would be produced and how much the importance of the total expenditure
of existing capacity would be anticipated by producers as a whole.
utilized
The Components of 6.5.2 Identify and explain the Consumption, Investment, Guide students to list households, firms, the What is meant by the
Total Expenditure components of total Government expenditure, government and the rest of the worlds as those following?
expenditure Net exports who spend on the nation‟s output, then lead i) Consumption
them to identify consumption with households, ii) Investment
investment with firms, etc iii) Government
All the components of aggregate expenditure expenditure
must be seen as injections into the stream of iv) Net exports.
spending on the nation‟s output.
92
ACTIVITIES

AGGREGATE
EXPENDITURE:
MEANING AND
IMPORTANCE
Consumption 6.5.3 define consumption Expenditure by households on Guide students to list some items that What is the consumption
goods and services households spend money on. function? Specify in a
functional form and name its
component parts
The Consumption 6.5.4 identify the relationship The function which shows the Guide students to list the variables that influence
Function between consumption and relationship between consumption consumption. Then tell them that the Draw a consumption
disposable income. and disposable income consumption function focuses on the function and explain its
relationship between consumption and position and shape.
E.g. C = a+ bYd disposable income. Changes in the other
factors would shift the consumption function.
The Shape of The 6.5.5 draw a consumption The shape is based on the Use hypothetical data on consumption and
Consumption function and explain its following assumptions: disposable income to construct a consumption
Function position and shape. (i) the greater the disposable function.
Income, the greater aggregate
consumption.
(ii) at certain low levels of income,

consumption exceeds
disposable income.
(iii) as income rises consumption

rises less than proportionately
93
ACTIVITIES
UNIT 5 (CONTD) The student will be able to:
AGGREGATE
EXPENDITURE:
MEANING AND
IMPORTANCE
The Marginal Propensity to 6.5.6 define the MPC The MPC is the proportion or i) Calculate the MPC from the Below is a set of data on
Consume (MPC) percentage of additional income hypothetical data above income and consumption in
consumed. a country:
ii) Guide students to realize that the
slope of the consumption function Yd C
measures the MPC at the GH¢ GH¢
corresponding level of income 90 90
100 95
200 180
300 255
400 320
500 375
600 420
Answer the questions which
follow:
i) Calculate the MPC at each
level of income.
ii) Explain the MPC.
94
ACTIVITIES
UNIT 5 (CONTD) The student will be able to:
AGGREGATE
EXPENDITURE:
MEANING AND
IMPORTANCE
The savings function 6.5.7 Identify the relationship The function which shows the Students to be assisted to realize that savings From the hypothetical data
between saving and relationship between savings and are the complement of consumption. Therefore in 1.1.6, derive the savings
disposable income. disposable income anything which influences consumption schedule.
E.g. S = - a+ (1 - b)Yd influences savings
As an activity, teacher should take students
through the derivation of the Savings function.
The Shape of the

savings function 6.5.8 draw a saving function and The shape of the savings function Use a hypothetical data on savings at various Draw a savings function and
explain its shape is based on the following levels of income to construct a savings function explain its position and
hypotheses: shape.
(i) As income increases savings

increases.
(ii) At certain low levels of income

there is dissaving (negative
saving)
(iii) As income increases, savings

increase less than
proportionately
95
ACTIVITIES
UNIT 5(CONT’D)
AGGREGATE
EXPENDITURE:
MEANING AND
IMPORTANCE
The Marginal 6.5.9 define the MPS The MPs is the proportion or Use the hypothetical data on the consumption a) From the savings
Propensity to Save percentage of an additional income function to derive the corresponding savings schedule derived in 1.1.8,
(MPS) saved function. calculate the MPS at each
Next calculate the APS at the various levels of level of income.
it is the complement of the MPC income.
i.e. MPC + MPS = 1 b) From the evaluation, in
(i) Calculate the MPS from the show that MPC + MPS =1.
hypothetical data above.
(ii) Guide students to realize that the

slope of the savings curve
measures the MPS at the
corresponding level of income:
96
ACTIVITIES
UNIT 5 (CONT’D)
AGGREGATE The student will be able to:
EXPENDITURE:
MEANING AND
IMPORTANCE
(ii) Investment: 6.5.10 define investment Spending devoted towards Teacher to distinguish between investment as a a) What is the meaning of
Meaning maintaining or increasing a component of aggregate expenditure and investment?
nation‟s capital stock. investment in the ordinary sense of the word. B) How does investment
from a nation‟s point of view
Components of investment: differ from investment from a
person‟s point of view?
a) Business‟ purchase of plant
and machinery.
b) Construction for residential and

business purposes.
c) Inventory or stock
Autonomous 6.5.11 define and give examples Investment expenditure which is Guide students to give examples of investment
Investment of autonomous independent of income. It is which is independent of the level of current
investment parallel to the income axis income.
The Autonomous
Investment Function 6.5.12 plot a graph with given The Autonomous Investment Construct hypothetical data on autonomous
data on autonomous Function. investment at various levels of income. Graph the
investment data.
97
ACTIVITIES

AGGREGATE
EXPENDITURE:
MEANING AND
IMPORTANCE 6.5.12 explain government Expenditure by government on Ask students to list some items and services on a) For what purposes does a
expenditure goods and services. which government spends. government spend on goods
(iii) Government Teacher must mention at least two factors which and services?
Expenditure influence government expenditure.
b) What difference does
government expenditure
make on total spending on
goods and services in a
country?
(iv) Net Exports: 6.5.13 define net exports “Net exports” is exports minus Assist students in a discussion to understand that
Meaning Imports. export expenditure increases expenditure on the
country‟s goods and services. On the other hand,
expenditure on imports reduces spending on the
country‟s goods and services.
Equilibrium National 6.5.14 explain equilibrium A national income which has no Aggregate Expenditure is desired spending and
Income national income tendency to change from one National Output is actual production.
period to another is an Teacher should let students know that the two may
equilibrium national income. not be equal. If they are equal, then equilibrium
occurs and there is no tendency for National
Income to change.
98
ACTIVITIES

AGGREGATE
EXPENDITURE:
MEANING AND 6.5.15 illustrate equilibrium Total Income equals total Teacher to introduce and explain the 45 degree a) What is an equilibrium
IMPORTANCE national income by the Expenditure line. national income”?
income equals expenditure Guide students to draw the illustration of an
Graphical approach. equilibrium national income by the income b) When would a national
Representation of an expenditure approach. income be in equilibrium?
Equilibrium National
Income * (Limit students to only the Income = Expenditure c) Sketch a diagram to show
approach). equilibrium National Income.
Note the following:

(i) National Income on the horizontal
axis
(ii) Expenditure on the vertical axis

o
(iii) The 45 line on it, Income (y) equals
Expenditure (E)
(iv) Reason with students and help them

to understand that if total expenditure
is greater than output (income),
stocks be would run down and
production would need to be
increased. On the other hand, if total
expenditure is less than total output
(income) stocks would be
accumulated, and output would be
reduced.
99
ACTIVITIES

AGGREGATE
EXPENDITURE:
MEANING AND
IMPORTANCE
Changes in The 6.5.16 explain that the Changes in the level of Lead students in a discussion to identify the factors Explain how each of the
Components of Total components of total consumption expenditure that would cause a charge in consumption following would affect
Expenditure and Their expenditure may change expenditure, apart from charges in disposable equilibrium income and
Effects on The for a number of reasons income employment
Equilibrium National i.e. What factors can change autonomous
Income and investment? (i) A liberalisation of
Employment consumer credit (Credit
facilities)
(ii) An increase in
investment expenditure
(iii) A decrease in
Government
expenditure
6.5.17 explain that changes in (ii) Changes in investment Students to identify and explain the factors that (iv) An increase in net
the components of total expenditure would cause a change in investment expenditure. exports.
expenditure would affect
the level of equilibrium Students to identify and explain the causes of
income and employment (iii) Changes in Government change in government expenditure.
expenditure
Students to identify and explain the causes of a
(iv) Changes in net exports change in net export.
Note: It should be noted that in the short run when

technology is constant, a change in output (
income) means a change in employment
100
ACTIVITIES
THE MULTIPLIER: 6.6.1 explain the concept of The multiplier is the number of Teacher should lead students to appreciate that Explain how the multiplier
CONCEPT AND the multiplier times a given injection into or an injection into the spending steam leads to an works in increasing income
MEASUREMENT withdrawal from the spending expansion in income and employment. and employment?
stream is multiplied in affecting Leakages lead to reduced income and
income and employment. employment.
Futures Wheel teaching technique is

recommended.
The Multiplier in a 6.6.2 calculate the multiplier in a K= 1 Assume values of the mps, mpt and mpm and a) What is the multiplier?
Closed Economy closed economy without mps calculate by how much a certain increase in b) On what does the size of the
without Government taxation. investment or government expenditure would multiplier depend?
affect the national income.
The Multiplier in a
Closed Economy 6.6.3 calculate the multiplier in a K= 1
with Government closed economy with mps + mpt
taxation.
The Multiplier in an
Open Economy with 6.6.4 calculate the multiplier in K= 1
Government an open economy with mps + mpt + mpm
taxation.
101
ACTIVITIES
THE CONCEPTS OF
ECONOMIC GROWTH 6.7.1 explain the terms Economic growth is a sustained Teacher to lead a class discussion on why Distinguish between
AND ECONOMIC economic growth and increase in per capita real economic growth is defined in terms of a rise in economic growth and
DEVELOPMENT economic development income. per capita income, and why the income rise must economic recovery.
be sustained.
Distinguish between
Economic development is Use the Production Possibility Curve to illustrate, economic growth and
economic growth accompanied emphasising that the rise in income must result economic development.
by changes in technology, the from an increase in the production potential of the
structure of production, economy.
standard of living, attitudes and
values etc. Another class discussion on why economic growth
must be accompanied by change in technology,
structure of production etc to be described as
economic development.
Features of the LDC’s 6.7.2 explain the features of Economic Features: Teacher to guide students to identify and explain (a) What are the main
the less developed Low per capita income, poor the features, emphasizing their effect on economic features of the
countries. economic and social growth and development. LDC?
infrastructure, low productivity
Demographic /Sociological (b) How do these
Features: features affect
High rates of population growth their economic
because of high birth rates and growth and
declining death rates, high development?
dependency ratio of the
population etc.
Political Features
Inefficient administration,
political instability etc.
.
102
ACTIVITIES

THE CONCEPTS OF
ECONOMIC GROWTH
AND ECONOMIC
DEVELOPMENT
Why Some Countries

have Higher National 6.7.3 identify the factors that The following must be Class to be guided to identity the factors that What accounts for the higher
Incomes than Others contribute to the size of emphasized: determine the size of the national income and incomes of some countries
the national income of 1. The quantity and quality of discuss how they affect the size of the national than others?
a country. the resources, both material income.
and human
2. The relative availability of the
resources-i.e. the proportions
in which they exist
3. The level of technology
4. The value systems of the

people
5. The size of the market for
output – both domestic and
foreign etc.
Factors of Growth in the 6.7.4 explain the factors of The factors include: Teacher to guide students to identify and explain Why are national income
Income of a Country growth in the income (i) The rate of resources the factors of the growth of national income. growth rates higher in some
of a country. discovery countries than others?
(ii) The rate of capital
formation which
depends on the rate
of saving
(iii) The rate of
technological
progress
(iv) Reallocation of
resources to raise the
level of productivity in
the country etc.
103
SECTION 1
1. appreciate the role of agriculture in the economy of Ghana,and its problems and remedies.
2. understand the importance, difficulties and strategies of industrialisation in Ghana

ACTIVITIES

AGRICULTURE
1.1.1 explain Peasant The features of Peasant Farming and Teacher to guide students to identify and (a) Distinguish between
Systems of Farming and Commercial Farming with respect to: explain the features of Peasant farming and peasant farming and
Agriculture Commercial Farming. (ii) size of farms Commercial farming. commercial farming.
(iii) technology
(iv) marketing organization etc.
The Relative 1.1.2 describe the relative Relative importance with respect to: Students to research on the topic and discuss (b) “For rapid economic
Importance of Peasant importance of peasant (i) supply of food their findings in class. development in Ghana,
Farming and farming and commercial (ii) supply of industrial raw peasant farming must
Commercial Farming farming. materials give way to commercial
in Ghana. (iii) foreign exchange farming” Discuss.
earnings
(iv) employment etc.
Types of Agricultural 1.1.3 identify the types and Types of Agricultural Production Teacher to lead students to classify the Describe the problems of the
Production in Ghana their problems. (a) Food crops, e.g. maize. various types of agricultural production and to food growers and export
(b) Industrial Raw Materials, discuss the problems of each type under the crop growers in Ghana.
e.g. Cotton headings:
(c) Export crops e.g. cocoa (i) Production Problems
(d) Livestock (ii) Marketing Problems
(e) Fisheries
Problems of 1.1.4 describe the problems (i) Supply Problems e.g. land Class discussion to identify and explain the What are to the problems of
Agriculture of agriculture in Ghana. tenure problems, lack of problems of agriculture in Ghana. agriculture in Ghana?
credit
(ii) Demand /Marketing
Problems, e.g. transportation
problems and storage
problems.
104
ACTIVITIES
UNIT 1 (CONT’D The student will be able to:
Remedies 1.1.5 explain the remedies to Remedies to be related to the supply Brainstorm with students to identity and explain Suggest remedies to
the problems of problems and the marketing problems. the remedies. the problems of
agriculture. agriculture in Ghana.
Importance of 1.1.6 explain the importance Importance with respect to its Students to collect data by group research on Describe the
Agriculture in Ghana of agriculture in Ghana. contribution to: the various aspects of the contribution of importance of
(i) National Income and agriculture to the national economy and present agriculture to the
employment their findings for a class discussion. economy of Ghana.
(ii) Foreign Exchange
(iii) Government Revenue
(iv) Industry
(v) Food supply
UNIT 2
THE CONCEPT OF
INDUSTRIALISATION: 1.2.1 explain the term Meaning of Industrialisation. Guide students to list some manufacturing What is the meaning of
“Industrialisation”. businesses and describe the nature of their Industrialisation?
Meaning activities.
Types of Industrialisation 1.2.2 identify and explain the (i) Cottage Industries: Small scale Students to be guided to list some Explain, with examples,
various types of industries, usually by households on the manufacturing businesses and discuss to the meaning of cottage
manufacturing farms. identify them as cottage, light or heavy industries, light
businesses. (ii) Light Industries using simple industries. industries and heavy
manufacturing processes to produce industries.
small goods used in the house.
Characterised by a high ratio of raw
materials to total value of product.
(iii) Heavy Industries using complex
processes to produce equipment mostly
for industrial uses. Products contain a
low ratio of raw materials to the value of
output.
105
ACTIVITIES

THE CONCEPT OF
INDUSTRIALISATION
Strategies of 1.2.3 explain various (i) Processing raw materials (i) Teacher to guide students to explain What is the importance
Industrialisation strategies of (ii) Import substitution what each strategy involves. of processing
industrialisation, (iii) Export -led agricultural produce
touching on their industrialisation (ii) Students to brainstorm on the before it is
purposes and purpose and problems of each exported?
problems. strategy.
What are the prospects
for a successful import
– substitution and
export led
industrialisation in
Ghana?
Importance/Role of 1.2.4 explain the importance / Contribution to: Students to research and collect data for discussion Outline the role of
Industrialisation role of industrialisation in (i) National Income in class. Industrialisation in the
Ghana. (ii) Employment economic development
(iii) Government of Ghana.
Revenue
(iv) Foreign Exchange
(v) Agriculture and
Commerce
(vi) Infrastructure etc.
106
ACTIVITIES

THE CONCEPT OF
INDUSTRIALIZATION:
Problems of 1.2.5 explain the problems of Supply problems: Students to brainstorm to identify and explain the What are the problems
Industrialisation industrialisation in (i) Inadequate infrastructure problems of industrialisation. of industrialization in
Ghana. (ii) Inadequate credit facilities Ghana?
/high interest rates
(iii) Inadequate raw
materials/high
dependence on foreign
inputs scarce, foreign
exchange etc.
Demand Problems:
(i) Small market size
because of low
income.
(ii) Competition from

cheap imports –
Trade Liberalization
etc.
Others:
(i) Political Instability
(ii) Bad government
policies etc.
Solutions to the 1.2.6 explain solutions to the Some solutions are: Students to brainstorm for solutions to the problems of Suggest solutions to the
Problems of problems of (i) Establishment of industrialisation. problems of
Industrialisation industrialisation. Development industrialisation in
Banks to provide Ghana.
access to credit.
(ii) Creating Industrial
Estates
(iii) Protecting infant
industries etc.
107
ACTIVITIES

THE CONCEPT OF
INDUSTRIALISATION:
The Link Between Agricultural and 1.2.7 explain that Agricultural development and Students to brainstorm to bring out the “For a sustained
Industrial Development agricultural and industrialisation help to solve each ways in which agricultural development economic growth and
industrial other‟s demand and supply and industrialisation support each other. development,
development depend problems. agricultural development
on each other. and industrialisation
must hand in hand
proceed”. Discuss.
Public Policies towards Agricultural 1.2.8 explain government Government policies towards Teacher to assist students to list and Describe the role played
and Industrial Development in policy towards agricultural development include discuss the various pubic policies for by government in
Ghana. agricultural the following: promoting agricultural development, promoting agricultural
development (i) Credit facilities at reduced including their advantages and development in Ghana.
and industrialisation in interest rates disadvantages.
Ghana. Assess the role of the
(ii) Stabilization of prices various polices for
paid to farmers. promoting agricultural
(iii) Provision of development in the
infrastructure country.
(iv) Provision of silos
(v) Incentive packages such as
bonus and best farmer
awards .
(vi) Extension services
(vii) Presidential Special
Initiatives
Government policies
towards industrialisation
include:
(i) Business assistance funds
(BAF)
(ii) Free Exports Zone
(iii) Tax rebates and
exemptions
108
ACTIVITIES

THE CONCEPT OF (iv) Investment code to attract (i) Students to do research on the
INDUSTRIALISATION: foreign investors. various agencies and policy
measures and bring their findings
(v) The establishment of a to class for whole class
Business Advisory Centre discussion.
(ABC).
(vi) NBSSI (ii) Where possible, invite resource Describe the role played
(vii) Empretec persons from the agencies to by the government in
(viii) The Village Infrastructure Project give a talk on their functions and the industrial
(VIP) problems. development of the
(ix) Increasing agricultural production country.
of raw materials for agro-based
industries.
1.2.9 explain the advantages Advantages and disadvantages of Brainstorm with students to come out with the
and disadvantages of various policies towards agricultural advantages and disadvantages of the policies.
the various policies. development and industrialisation.
109
SECTION 2:
MONEY AND FINANCIAL INSTITUTIONS
1. understand what money is and its functions in an economy

2. understand the factors that determine the internal value of money
3. recognise various financial institutions and their contributions to economic development in West African countries.

ACTIVITIES
DEFINITION OF 2.1.1 define money Money is defined as any item Students to be told that money is defined in What is money?
MONEY . which is generally acceptable as a terms of its functions and be encouraged to
medium of exchange and in suggest a definition of money. (a) What are the
settlement of debts. problems of
barter?
Historical
Development of 2.1.2 describe the evolution of The barter system and its Lead students in a class discussion on barter (b) How has money
Money money problems; commodity money – a direct exchange of goods for goods – and helped to
(including the use of precious its problems. overcome the
metals) and its problems; currency problems of
notes and coins, token money. barter?
Characteristics of
Good Money 2.1.3 identify and explain the Relatively scarce, generally Guide students to identify and explain the What are the attributes
characteristics of money acceptable, portable, divisible, characteristics of money that enable it to of good money?
that enable it to perform durable, stable in value, perform its functions efficiently.
its functions effectively. homogenous, non- counterfeitable
UNIT 2
THE FUNCTIONS OF 2.2.1 identify and explain the (i) medium of Exchange Lead students to explain the functions of Describe the functions
MONEY functions of money (ii) Measure of value or money in a class discussion. of money.
unit of Account
(iii) Store of value
(iv) Standard of Deferred
Payments
110
ACTIVITIES
DEFINITION OF
MONEY
2.2.2: explain the meaning of Money supply refers to the stock of Teacher to distinguish between stock and flow Define money supply.
money supply. money in the various forms at a and help students to appreciate that money
particular moment of time supply is a stock variable, not a flow variable.
Forms of Money in 2.2.3 identify the various forms M0 = (currency) (notes and coins) Lead students to identify and explain the various List and explain the
a Modern Economy of money in a modern forms of money. various forms of money
economy. M1= Currency + demand deposits in a modern economy.
at the banks
M2 = Currency + demand deposits

+ time deposits at the banks
M3 = M2 + money in non-bank
institutions
UNIT 3
SUPPLY OF 2.3.1 identify the determinants The monetary policy of the Lead students to identify and explain the Explain the factors that
MONEY: of money supply. government, the interactions determinants of money supply in a modern determine the money supply
MEANING AND between the banking system and economy. in an economy.
DETERMINANTS the non-bank sector as well as the
preferences of the public.
The Demand for 2.3.2 explain the meaning of the Demand for money refers to the Define demand for money.
Money: demand for money. demand for money balances that
Meaning people wish to hold.
111
ACTIVITIES
MOTIVES FOR
HOLDING MONEY 2.3.3 identify and explain the The transactions, precautionary (i) Guide students to identify and explain the Explain the factors that
motives for holding and speculative motives determinants of the various motives. determine the size of the
money. money balances held under
the various motives.
(ii) Guide students to identify that the
opportunity cost of holding money balances
is interest rate.
Assist them to understand that when money

is held interest income is foregone.
UNIT 4
THE VALUE OF 2.4.1 : explain the concept of the The amount of goods and services (i) Lead students to consider changes in the
MONEY: MEANING value of money and its that a unit of money can buy - ie purchasing power of a given amount of
AND determinants. the purchasing power of a unit of money over a period of two years.
DETERMINANTS money.
(ii) Guide them to identify what the internal
value of money depends upon. E.g. The
value for money depends on the general
price level.
112
ACTIVITIES

THE VALUE OF
MONEY: MEANING
AND
DETERMINANTS
Measurement of 2.4.2: explain how to measure Construction of a price index Teacher to explain the steps in (a) What is a price index?
Changes in The changes in the value of (i) constituting the basket of goods for a (b) Describe how a price
Value of Money money. representative group of the population index is calculated.
(ii) selection of the base year
(iii) calculation of the price relatives
(iv) weighting the price relatives
(v) calculation of the weighted average
113
ACTIVITIES
UNIT 5
FINANCIAL INSTITUTIONS The student will be able to:
Money Markets 2.5.1 explain the concept of Market for short-term loans:- one Students to be led to give examples of short- Distinguish between money
money markets. year or less. term loans. markets and capital
markets.
Capital Markets 2.5.2 explain the concept of Market for long-term loans:- Students to be led to give examples of long-term
capital markets. more than one year. loans.
114
ACTIVITIES
BANKING 2.6.1 describe the functions of (i) Issuer of currency Students to do research on the functions of
INSTITUTIONS the central bank. (ii) Government‟s bank central banks and bring their findings for a class
(iii) Bankers‟ bank etc. discussion.
Commercial Banks 2.6.2 describe the functions of (i) Acceptance of deposits Students to research on the functions of
Functions commercial banks. (ii) Acting as agents for payments commercial banks and discuss their finding in
(iii) carrying out standing orders class.
(iv) Lending to customers etc.
2.6.3 explain how commercial Commercial banks create credit because Teacher to assume
Credit Creation banks create credit.. they engage in fractional – reserve i) a cash ratio of 1:10 or 1/10 or 10%.
banking.
After making provision for the ii) that initially the total cash reserves
required reserves, any excess stand in the ratio of 1:10 or 1/10 or
reserves become the basis for the 10% to commercial banks‟ deposits.
creation of additional credit by the
commercial banking system.. iii) Next assume that a customer of a
commercial bank deposits GH¢1million
in his account.
iv) Students to find out the following:

a) By how much would deposits have
increased?
b) By how much should required
reserves increase?
c) How much excess reserves would
the commercial banking system
have acquired?
d) How much additional deposits
would the commercial banking
system be able to create?
e) What is the credit multiplier?
f) How is the credit multiplier related
to the cash ratio.
115
ACTIVITIES

BANKING INSTITUTIONS
Central Bank:
(i) Functions
(ii) Instruments of
Monetary
Control
2.6.4 explain the instruments Bank Rate, Cash ratio. OMO etc. A resource person from a financial institution to give a 1. Describe the
of monetary control. lecture. instruments
(i) Ensures adequate supply by which the central
of money bank controls the
(ii) Ensures price stability operations of the
(iii) Promotes the development of commercial banks.
specialized banks
(iv) Manages the foreign reserves 2. Describe the role of
of the country the central bank in
economic
development.
Monetary and Policies

for Stabilising Income 2.6.5 explain that expansionary Policies which relate to the money Hold a class discussion on how monetary policies and fiscal Describe how monetary
and contractionary credit supply and interest rates policy can affect the level of total expenditure in an policies are used to
monetary policies can are called monetary policies. economy. stabilize the level of
affect the level of the income and
national employment in market
income economies
Role of the Central Bank
in Economic 2.6.6 describe the role of the Policies which relate to
Development central bank in economic government revenue and
development. expenditure and debt
management are called fiscal
polices
116
ACTIVITIES
Other Financial
institutions
Roles in Economic 2.6.7 describe other financial Development banks, Merchant Students to research on the various financial (a) What are development
Development institutions and their banks, Rural banks, including institutions and their roles in economic banks?
roles in economic Community banks. development as well as their problems.
development. Non-banking Institutions eg. (b) What is their role in
Alternatively, resource persons may be invited to the economic
1. Building Societies, give a talk on the various financial institution. development of the
2. Insurance Companies, country?
3. Stock Exchange,
4. Microfinance institutions.
117
ACTIVITIES

UNIT 7
INFLATION:
Meaning 2.7.1: explain the meaning of Inflation may be defined as a Lead students to discuss the definition of What is inflation?
Inflation. persistent and appreciable rise in inflation focusing on the underlined words.
the prices of goods and services in
general.
Types of inflation 2.7.2: identify and explain the (i) creeping /moderate inflation, Teacher to lead students to identify and explain Explain the various types of
types of inflation. (ii) run-away (hyper inflation / the various types of inflation inflation.
galloping
(iii) suppressed inflation
Causes of Inflation 2.7.1 explain the causes of Cost-push factors, Students to be guided to identify and explain the a) Explain the various
Inflation. Demand pull factors circumstances in which these causes would causes of inflation.
Mark–up operate.
Bottleneck b) Categorize the causes
discussed into Demand
Pull and Cost Push
factors
Causes of inflation 2.7.2 explain the causes of (i) Monetary and fiscal Students to be guided to explain how the What are the causes of
in LDCs inflation in the LDCs. mismanagement (inflationary peculiar circumstances of the LDCs contribute to inflation in the LDCS?
financing of deficit budgets). the inflationary pressures.
(ii) Low price elasticity of the

supply of food due to
bottlenecks in production.
(iii) Wage increases unrelated to

productivity
118
ACTIVITIES

INFLATION:
Effects of Inflation 2.7.3 explain the effects of inflation. Effects on: Students to brainstorm on the effects of inflation What are the effects of
(i) Output levels and Cost inflation in an economy?
(ii) Income distribution
(iii) Foreign trade
Control of Inflation 2.7.4 identify and explain (i) Monetary measures Guide students to discuss how the various How can inflation be
measures for controlling (ii) Fiscal measures measures work to control inflation. controlled in an economy?
inflation. (iii)Prices and income policy
(iv) Imports from cheaper Teacher should explain that if the rate of inflation
sources where possible is falling it does not mean that absolute prices
(v) Increased productivity in are also falling.
the long-run
119
SECTION 3:
PUBLIC FINANCE
1. be aware of the socio-economic activities of the government.

2. understand the structure or components of government expenditure.
3. recognise the sources of revenue for government.
4. appreciate the effect of the budget and the management of the national debt on economic development.

ACTIVITIES
GOVERNMENT 3.1.1 explain the need for The need for government Brainstorm with students to come out with the Explain the reasons why
ACTIVITIES government to engage in spending, eg reasons why the government engages in some governments have to spend
public activities. (i) protection of life and public spending. money on some activities.
property
(ii) stabilising the economy. Discuss with students to explain the various
(iii) administration activities the government performs.
(iv) servicing of national debt.
Let them list the activities and ask them if the
activities listed could be undertaken by private
individuals as well.
120
ACTIVITIES
CATEGORIES OF 3.2.1 identify the categories of Government expenditures are Use whole –class discussion to explain to
GOVERNMENT government expenditure. classified under: students that government expenditures are
EXPENDITURE (i) Central government conveniently classed into two (2.)
expenditures
(ii) Local government expenditure .

E.g. District assemblies
3.2.2 explain the Composition / structure of  Ask students to list objects of In which areas does the
composition/structure of government expenditure government spending. government spend
government expenditure. (i) General administration money to develop the
eg. Civil service  Collate students‟ responses on chalk economy?
board.
(ii) Economic Services Give examples in your
eg Agriculture and Industry  Guide students to group the items explanation.
listed into four (4) main areas in
(iii) Social services which government spends money.
eg Education, Health
(iv) Transfer Services

eg. Pensions and debt
servicing
UNIT 3
3.3.1 analyse the effects of Effects of government It is recommended that the Futures Wheel Analyse the effects of
EFFECTS OF government expenditure on the level of teaching technique be used to analyse the government expenditure on
GOVERNMENT expenditure National Income and employment. effect of government expenditure on national the following:
EXPENDITURE on the level of National income and employment. (i) level of national
income and income
employment. (ii) distribution of income
(iii) allocation of resources
Government 3.3.2 analyse the effects of Effects of government It is recommended that the Futures Wheel
Expenditure and government expenditure expenditure on distribution of teaching technique be used to analyse the
Distribution of on distribution of income. effects of government expenditure on
Income income. distribution of income.
121
ACTIVITIES
Government 3.3.3. analyse the effects of Effects of government It is recommended that the Futures Wheel
Expenditures and government expenditure expenditure on resource teaching technique be used to analyse the
Resource Allocation on allocation of allocation effects of government expenditure on resource
resources. allocation.
UNIT 4
PUBLIC/ 3.4.1 identify the sources of Sources of government revenue: Brainstorm with students to mention sources of How does the government
GOVERNMENT government revenue (i) Recurrent /Regular government revenue. of your country obtain
REVENUE Sources. revenue?
List responses on the board.
e.g. Taxation, Royalties, Income
from government activities Assist students through questioning to group
their responses into:
(ii) Capital Sources eg Loans (i) Recurrent Sources
and Grants (ii) Capital Sources
UNIT 5 3.5.1 identify with examples the Types of taxation: Explain to students that taxes can be classified What are direct and
TAXATION types of taxation. (i) Direct taxation into two (2), direct and indirect taxes. Guide indirect taxes?
e.g. Income tax them to give examples of each. Explain their merits and
(ii) Indirect taxation demerits of direct taxes.
e.g. Value Added Tax (VAT)
3.5.2 explain the objectives of Objectives of Direct and Indirect Use whole class discussion to get students to
direct and indirect taxes. taxes. explain why the government imposes direct
and indirect taxes on its people.
NOTE: Treat direct taxes separately from

indirect taxes.
Merits and 5.5.3 identify the merits and Merits and demerits of direct and Brainstorm with students to come out with the Why do most developing
Demerits of Direct demerits of direct and indirect indirect taxes. merits and demerits of direct and indirect countries rely more on
Taxes taxes. taxes. indirect taxes as a source
of government revenue?
What are the advantages

and disadvantages of
direct taxation?
122
ACTIVITIES

What is a tax incidence?
TAXATION 3.5.4 explain the meaning of Incidence of Taxes – refers to the
Incidence of Taxes. burden of tax with reference to
where the burden rests.
Incidence or burden of taxation lies
on the person who finally pays the
tax.
Tax Incidence 3.5.5. analyse the effects of The extent to which the producer Explain to students that there is a relationship (a) What is a tax
price elasticity of or consumer will bear the burden between price elasticity of demand and tax incidence?
demand on the of indirect tax will depend on the incidence.
incidence of taxes. price elasticity of demand for the Show the effect of the elasticity of demand for (b) How is the incidence of
commodity which is taxed. eg if a the good in question on the tax incidence. an indirect tax affected
commodity has a perfectly price Use diagrams for illustrations to enhance by the price elasticity of
inelastic demand the whole tax explanation and students‟ understanding. demand for the
burden can be easily shifted to the commodity?
consumer by the seller. The price Consider the various measures of price
of the commodity increases by the elasticity of demand.
full amount of tax.
Structure of 3.5.6 explain the structure of Structure of the tax system; Teacher to use hypothetical figures to express What are progressive,
Taxation taxation (i) proportional the three types of rates either as a proportion regressive and
(ii) progressive or as a percentage. proportional taxes?
(iii) regressive taxation Explain your answer
with examples.
Principles/Canons 3.5.7 explain the Principles / Canons of taxation Engage students in a whole class discussion What principles must a
of Taxation principle/canons of These are: to bring out the principles of taxation good tax system follow?
taxation. (i) Equity or Fairness
(ii) Economy Assist students to explain each of the
(iii) Certainty principles.
(iv) Convenience
(v) Flexibility
(vi) Neutrality
123
ACTIVITIES
THE NATIONAL 3.6.1 explain the meaning of a Definition of the national Students to think of their household budgets ie
BUDGET National Budget. budget. the estimated future income and estimated
future expenditure of their parents for a
particular month. This should be transferred to
the meaning of a National Budget.
NOTE: Estimated revenue and expenditure

may not be the same as actual revenue and
expenditure.
3.6.2 describe the various ways i) Budget Deficits Through whole-class discussion teacher
a budget is structured. ii) Budget Surplus should lead students to describe the nature of
iii)Balanced Budget budget deficits , budget surpluses and
balanced budget.
3.6.3 explain that a budget is a Budget as fiscal instrument for Teacher to lead class in a discussion to bring Explain how a budget can
fiscal instrument for achieving economic development. out the effects of the various types of budgets be used to achieve the
achieving economic i) Budget deficit for checking on the following: following economic
development. deflation. (i) a deflated economy objectives:
ii) Budget surpluses for checking (ii) rate of inflation a) A reduction in the rate of
inflation. (iii) size of the national debt inflation
iii) Balanced Budget for fiscal b) A higher level of
neutrality. employment
c) A reduction in the size of
the national debt.
3.6.4 explain the importance of Importance of breaking Ask students to prepare a list of their
breaking government government spending into household expenditures and help them group
spending into recurrent recurrent and capital expenditure. them into recurrent and capital expenditures.
and capital expenditures. Extend this to government expenditure.
Ask students to discuss the importance of

dividing government spending into recurrent
and capital expenditures.
124
ACTIVITIES
UNIT 6 THE
NATIONAL The student will be able to:
BUDGET
(CONT’D)
Fiscal Policies 3.6.5 explain the meaning of Policies which relate to government Hold a class discussion on how fiscal policy 1. Identify tools of fiscal
fiscal policy revenue and expenditure and debt can affect the level of total expenditure in an policy.
management are called fiscal economy.
policies.
2. Describe how fiscal

3.6.6 explain how fiscal policy Explanation of how fiscal policies policies are used to
can affect level of affect the level of economic activity. stabilize the level of
economic activity. income and employment.
125
ACTIVITIES
THE NATIONAL DEBT 3.7.1 explain what National Debts Define National Debts Use everyday situations of incurring
are? debt to explain to students what
national debt is.
Classification of National 3.7.2 describe the ways of classifying (i) Internal Debt Lead students to discuss the Distinguish between the
Debt a country‟s national debt. (ii) External Debt difference between internal and internal debts and the
external debts of a country. external debts of a
country.
Types of Borrowing 3.7.3 describe the types of borrowing (i) Short-term borrowing Students to discuss and suggest
by a country. (ii) Medium – term borrowing reasons for borrowing on short,
(iii) Long – term borrowing medium and long-term basis.
Reason for Internal 3.7.4 give reasons for internal Some reasons are: Students to brainstorm and come out Why would the
Borrowing borrowing by a government. (i) financing deficits in the with reasons for internal borrowing. government borrow from
budget the public?
A resource person may be invited
(ii) reducing economic
from a financial institution to give a
burden on tax payers
talk on instruments of government
Sources of Internal 3.7.5 describe the sources of internal borrowing. Distinguish between a
Borrowing The sources are the banks and
borrowing and how it is done. treasury bill and a
the public through the sale of
government bond.
(i) treasury bills
(ii) government bonds etc.
Advantages and 3.7.6 explain the merits and demerits Class should debate on the What are the advantages
Disadvantages of Internal (a) Some advantages are:
of borrowing for a country. importance of internal borrowing to and disadvantages of
Borrowing (i) raising funds to support arrive at its merits and demerits. internal borrowing in a
development projects country?
(ii) borrowing from the public
reduces the rate of inflation
(b) Some disadvantages are:
(i) redistribution of income
from the poor to the rich.
(ii) Increase in tax rates to
raise additional revenue to
service the debt.
126
ACTIVITIES

THE NATIONAL
DEBT
3.7.7 give reasons for external Some reasons are: Students to brainstorm to come out with Give reasons for the
Reasons for External borrowing by a country. (i) Financing BOP deficits reasons for external borrowing by a country increase in the size of the
Borrowing (ii) Financing huge capital external debt of your
projects country.
Sources of External 3.7.8 describe the sources of Some sources are: Students to brainstorm to bring out the What are the main sources
Borrowing external borrowing for a (i) foreign governments sources of external borrowing. of external borrowing for a
country. (ii) the World Bank and IMF country?
Advantages and 3.7.9 explain the merits and (a) Some advantages are availability Lead students in a discussion to bring out the Explain three advantages
Disadvantages of demerits of external of foreign exchange to: advantages and disadvantages of external and three disadvantages of
External Borrowing borrowing for a country. (i) Supplement earnings borrowing. external borrowing for a
from exports country.
(ii) Finance huge capital
projects like hydro-
electric dams
(b) Some disadvantages are:

(i) diversion of foreign
exchange to service
debts.
(ii) foreign control over
domestic economic policies
127
ACTIVITIES
UNIT 7 (CONT’D)
THE NATIONAL The student will be able to:
DEBT
Debt
Servicing 3.7.10 explain the meaning of Debt servicing involves: Teacher to lead students to discuss how a Identify and explain the
debt servicing. (i) interest payment on personal loan from a bank or a credit union is components of debt
debt serviced, and help them to apply this knowledge to servicing
the servicing of a national debt.
(ii) repayment of the
principal amount
128
SECTION 4:
INTERNATIONAL TRADE
1. understand the need for countries to trade among themselves
2. understand some terms used in international trade
3. understand the problems faced by LDCs in international trade and their solutions.
4. appreciate changes in the composition and direction of the external trade of West African countries.

ACTIVITIES

DIFFERENCE
BETWEEN
DOMESTIC/INTERNAL 4.1.1 explain the differences Some differences relate to: Students should brainstorm to come out with the Explain five differences
TRADE AND between domestic and (i) currency used differences. between domestic trade and
INTERNATIONAL / international trade (ii) boundary of trade international trade
FOREIGN TRADE NOTE: Teacher to sum up that domestic trade and
international trade are governed by different
regulations.
UNIT 2
REASONS FOR 4.2.1 explain why countries Some of the reasons are: Students should brain-storm to come out with the Why do countries trade
INTERNATIONAL trade among themselves (i) uneven distribution of natural reasons for international trade. among themselves?
TRADE resources
(ii) the law of comparative
cost/advantage.
129
ACTIVITIES

REASONS FOR
INTERNATIONAL 4.2.2: describe how the law of The law of comparative cost / Teacher to provide a hypothetical table on chalkboard State the law of comparative
TRADE comparative cost/ advantage showing the productivity situation in two countries costs and show how it is a
advantage explains the producing two different commodities. From the table requirement for international
need for international lead students to: trade.
trade. (i) explain the meaning of absolute cost
advantage.
(ii) explain the meaning of comparative cost

advantage using relative costs or
opportunity costs, and determine who
should specialize in what.
(iii) determine the effects of international

specialization.
NOTE: International specialization and trade is on the

basis of comparative cost advantage instead of absolute
cost advantage.
Advantages and 4.2.3: explain the advantages (a) Some advantages are: Whole –class discussion to bring out the advantages (a) Explain three ways
Disadvantages of and disadvantages of (i) acquisition of foreign and disadvantages of international trade. in which a country
International Trade international trade. technology can benefit from
(ii) availability of a variety of international trade.
commodities
(b) Describe any two
(b) Some disadvantages are: problems of
(i) foreign debts international trade
(ii) stifling of local industries in your country.
130
ACTIVITIES
TERMS OF
TRADE 4.3.1: explain the meaning of the Commodity Terms of Trade: The Teacher to lead students to understand the i) Explain the term
commodity terms of trade. ratio of export price index to meaning of the terms of trade from the index of “Commodity Terms of
import price index: terms of trade formula. Trade”
Index of the terms of Trade = ii) Explain how the following

Index of export prices x 100% would affect the
Index of import prices commodity terms of trade
of a country:
a) the exchange rate
Changes in The 4.3.2: explain the reasons for (a) Some causes of a favourable Lead students to discuss economic policies that b) the nature of a country‟s
Terms of Trade changes in the terms of change in the terms of trade influence the export / import price ratios and how exports
trade. are: they can bring changes in the terms of trade. c) the nature of a country‟s
(i) improvement in the exchange imports
rate. d) the levels of demand for
(ii) reduction in demand for imports imports and exports.
(b) Some causes of unfavourable

terms of trade are:
(i) primary nature of exports
(ii) decrease in demand for primary
exports.
(iii) imports are basically
manufactured goods
131
ACTIVITIES

TERMS OF
TRADE
The Structure of 4.3.3 define the Balance of Definition of Balance of Payments Teacher to paste a bold balance of payments Explain the following:
The Balance of Payments poster on chalkboard. (i) Balance of Payments
Payments (ii) Balance of Trade
Account Teacher should explain balance of trade, current (iii) Current Account
4.3.4: describe the main items in Structure of the Balance of account, capital account, including the balancing (iv) Capital Account
the balance of payments payments accounts: items and the total account.
accounts
(i) Current account After that students should be led to identify them
(ii) Capital account including the from the poster.
balancing items
(iii) The total account (current
account + capital account,
including the balancing items
= 0)
Difference 4.3.5 explain the difference Difference between Balance of Use the same poster to explain the difference Differentiate between
between Balance between Balance of Payment Surplus and Balance of between Balance of Payment Surplus and Balance of Balance of
of Payment Payment Surplus and Payment Deficit balance of Payment Deficit Payment Surplus and
Surplus and Balance of Payment Balance of
Balance of Deficit Payment Deficit
Payment Deficit
Financing 4.3.6: explain the sources of Some of the sources are: Students to imagine someone who is indebted to
Balance of funds for financing balance (i) loans many people. They should discuss how he
Payments Deficits of payments deficits. (ii) foreign reserves could raise funds to pay the debt. The
discussion should be transferred to a country
and ask students to identify the sources of
foreign exchange to pay the debt.
NOTE: Teacher to explain that financing balance

of payments deficits is a short term measure for
dealing with balance of payments deficits.
132
ACTIVITIES
ARGUMENTS
AGAINST FREE 4.4.1: explain why imports should Some arguments against free Class to discuss why imports should be Explain five reasons why a
TRADE be restricted. trade are: restricted in a country. country should control
(i) protection of infant industries imports.
(ii) correction of balance of

payments deficits.
Arguments for 4.4.2: explain why restrictions on Some reasons are: Lead students to discuss the benefits of free Give five reasons why you
Free Trade (Trade imports should be (i) enhancement of international trade. would support free trade in
Liberalisation) removed specialization. your country.
(ii) availability of a variety of goods.
133
ACTIVITIES

EXCHANGE
RATE
2.5.1 explain the meaning of Meaning of “exchange rate” Students to imagine markets in which goods are
Meaning of exchange rate exchanged for money.
Exchange rate
Ask students to mention foreign exchange
bureaux they know and tell them that they are
foreign exchange markets in which one
country‟s money is exchanged for another
country‟s money. Engage students in a mock
trading on a forex market to bring out the
meaning of an exchange rate.
Determinants of 2.5.2: explain how exchange rates (i) Some exchange rates are Class to discuss how prices are determined in a
an Exchange are determined. determined by demand and goods market.
Rate supply Help students to transfer this to show how
exchange rates are determined on the Forex
(ii) Some exchange rates are fixed market.
by government.
Ask a student to write a cedi-dollar exchange
rate on the chalkboard. Adjust the exchange
rate and lead students to discuss what has
happened to the external value of the cedi.
Exchange Rate 2.5.3 describe various exchange (i) Flexible or Floating exchange Introduce to students the appropriate Explain the various types of
Regimes rate regimes and related rate (appreciation and depreciation) terminologies used for the changes in the exchange rate regimes.
terminologies. (ii) Fixed or Pegged exchange rate external value of the cedi in flexible and fixed
(revaluation and devaluation) exchange rate regimes.
(iii) Managed Float
(iv) Adjustable Peg.
134
SECTION 5:
ECONOMIC CO-OPERATION
1. appreciate different forms of economic co-operation

2. understand the importance of economic co-operation as an instrument for achieving growth and development
3. appreciate the problems of economic co-operation.
4. understand the roles of some international economic organizations in the economic development of countries.

ACTIVITIES
DIFFERENT 5.1.1: identify the various forms of Forms of economic co-operation Whole class discussion is recommended here to Write short rotes on the
FORMS OF economic co-operation (i) Free Trade Area aid explanation of each form of economic co- following;
ECONOMIC CO- (ii) Customs Union operation. a) Free Trade Area
OPERATION (iii) Common Market Teacher to cite examples of AfDB, ECOWAS, b) Customs Union
(iv) Economic Union The World Bank, IMF, etc as examples. c) Common Market
(v) Economic Integration d) Economic Union
5.1.2 explain the importance of

economic co-operation in the Importance of economic co- Lead a whole class discussion to come out with In what ways can economic
economic development of operation in economic development the importance of the various forms of economic co-operation be used as a
the LDCs. of the LDCs. co-operation. tool for breaking the vicious
circle of poverty in a
country?
UNIT 2
ADVANTAGES
OF THE 5.2.1: explain the advantages of Advantages of the various forms of Group discussion is recommended and group
VARIOUS economic co-operation. economic co-operation presentations to follow.
FORMS OF Teacher to list group points on the board for
ECONOMIC CO- further discussion and clarification.
OPERATION
135
ACTIVITIES
DISADVANTAGES
OF THE VARIOUS 5.2.2 explain the disadvantages Disadvantages of each form In what ways is a common
FORMS OF of each form of economic of economic co-operation - do - market an improvement on
ECONOMIC CO- co-operation. a customs union?
OPERATION
136
SECTION 6:
ECONOMIC DEVELOPMENT PLANNING
General objectives: The students will be able to:
1. understand the main objectives of economic development planning.

2. describe the types of time frames in development planning.
3. understand the necessity of development planning and the problems encountered during the formulation
and implementation of development plans.
SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING ACTIVITIES EVALUATION

UNIT

ECONOMIC
DEVELOPMENT 6.1.1 explain the term A deliberate government effort to Lead students to discuss the meaning of What is economic
PLANNING economic development change directly or indirectly economic development planning, focusing on development planning?
MEANING planning. certain key variables in an the underlined words.
economy in order to achieve a set
of targets within a specified time
period.
Objectives
(Reasons) 6.1.2 identify the main Some objectives are: Barnstorming by students to identify the State and explain five
objectives of economic (i) to increase the level of objectives of economic development planning. objectives of development
development planning. income and employment planning.
(ii) to provide infrastructure
(iii) to attract foreign
investment etc
137
ACTIVITIES

UNIT 1 (CONT’D)
Time Periods of 6.1.3 specify possible time (i) Short term: 1-3 years Students to find out about past plans
Economic frames in development (ii) Medium – term :5 – 10 years and their durations.
Development planning. (iii) Long – term: 10 – 20 years
Planning (iv) Perspective; 20 years +
Students to research on the stages in Why is it necessary for the
planning and bring findings to class for LDCs to undertake
a discussion. development planning?
Students to brainstorm on the

necessity of planning.
138
ACTIVITIES

Problems of
Development 6.1.4 identify and explain the Some of the problems are: (i) Students to do research and What are the problems of
Planning problems of (i) Shortage of planning bring their findings for class development planning in
development planning. personnel with the discussion. Ghana?
requisite expertise
and experience. (ii) Where possible invite a
resource person to give a talk.
(ii) Shortage of capital,
including foreign
exchange
(iii) Inadequate
appropriate statistical
data.
(iv) Poor coordination of

projects and
programmes
(v) Rapid inflation quickly

renders plan targets
unrealistic
(vi) Poor monitoring and

evaluation during
implementation
(vii) Lack of commitment

of the population
(viii) Political instability
139

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MIN IST RY OF E D U CATION SCIE NCE A ND SPORTS

TEACHING SYLLABUS FOR ECONOMICS

Enquiries and comments on this syllabus should be addressed to:

Tel: 021- 683668

The syllabus is designed to help students to:

PRE-REQUISITE SKILLS AND ALLIED SUBJECTS

ORGANIZATION OF THE SYLLABUS

STRUCTURE AND ORGANIZATION OF THE SYLLABUS

YEAR 2 YEAR 3 YEAR 4

SECTION 6: THE NATIONAL INCOME

SUGGESTIONS FOR TEACHING THE SYLLABUS

Sections and Units

Column 2: Specific Objectives

Column 4: Teaching and Learning Activities (T/L)

Knowledge and Understanding 55%

Knowledge and Understanding (KU)

Application of Knowledge (AK)

Distribution Of Examination Paper Weights And Marks

Grade A: 80 – 100% - Excellent

These will include the following:

i) visitations to commercial, agricultural, industrial and financial institutions;

A report must be written for each project undertaken.

UNIT 2: Scope of Economic Activity – Production and Distribution

UNIT 1: Land - Meaning; Characteristics; Importance and Problems of Land.

ECONOMIC SYSTEMS (ECONOMIES)

PRICE THEORY (DEMAND)

UNIT 4: Factors Determining the Demand for Goods and Services:-

PRICE THEORY (SUPPLY)

UNIT 2: Types of Supply – Composite, Complementary/Joint, Competitive.

UNIT 5: Specialization and Division of Labour – Meanings, Advantages and Disadvantages.

UNIT 7: The Concept of Appropriate Technology in the LDCs.

PRICES OF FACTORS OF PRODUCTION

UNIT 1: (a) Factors Determining the Demand for a Factor of Production:

UNIT 2: (b) Factors Determining the Supply of a Factor of Production;

UNIT 6: Price Discrimination – Meaning; Possibility; Profitability.

THE THEORY OF CONSUMER BEHAVIOUR

UNIT 1: Money: Definition; Historical Development of Money;

UNIT 5: Financial Institutions: Money Markets:– Meaning; Capital Markets:– Meaning.

FUNDAMENTAL CONCEPTS IN ECONOMICS

General objectives: The student will:

For maximum satisfaction, relatively scarce Students should be made to bring

UNIT 2 (CONT’D) The student will be able to:

UNIT 3 The student will be able to:

 a pie chart is a circle divided into sectors,

 a bar chart is a representation of data by

 pictograms are charts in which picture

FACTORS OF PRODUCTION (KINDS OF RESOURCES OF INPUTS)

General objectives: The student will:

UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION

UNIT 1 The student will be able to:

Characteristics 2.1.2 identify the characteristics of Briefly explain the concept

UNIT 1 (CONT’D) The student will be able to:

 Ask students to give examples

NOTE: Labour may also be classified

Difference Lead students through a brainstorm Explain the difference

Efficiency of labour must be taught in (a) What is efficiency of

UNIT 3 (CONT’D) The student will be able to:

The student will be able to:

Problems of 2.4.5. identify problems of census Problems of census include:

UNIT 4: (CONT’D) The student will be able to:

(2) Ageing Population has the following

The student will be able to:

(2) Some effects of an ageing population