ECONOMICS
GENERAL OBJECTIVES

The aim of the Unified Tertiary Matriculation Examination (UTME) syllabus in Economics is to prepare the candidates for the Board's examination. It is designed to test their achievement of the course objectives, which are to:
1.demonstrate sufficient knowledge and understanding of the basic concepts, tools and their general applications to economic analysis;
2.identify and explain the basic structure, operations and roles of the various economics units and institutions (national and international);
3.describe major economic activities - production, distribution and consumption;
4.identify and appraise the basic economic problems of society;
5.develop the competence to proffer solutions to economic problems.


TOPICS/CONTENTS/NOTES
1.Economics as a science
i.    Basic Concepts:
Wants, Scarcity, choice, Opportunity cost, Rationality, production, distribution, consumption etc
ii.    Economic problems of: what, how and for whom to produce

OBJECTIVES
Candidates should be able to:
(i)   compare various concepts in economies and their applications; 
(ii)  interpret graphs/schedules in relation to the concepts;
(iii) identify economic problems; 
(iv) proffer solutions to economic problems


TOPICS/CONTENTS/NOTES
2. Economics Systems
a. Types: free enterprise, centrally planned and mixed economies
b. Solutions to economic problems under different economic systems
c. Contemporary  issues in economic systems (e.g. economic reforms, deregulation etc) 

OBJECTIVES
Candidates should be able to:
(i)   compare the various economic systems;
(ii) apply the knowledge of economic systems to contemporary issues in Nigeria 
(iii) proffer solutions to economic problems in different economic systems. 


TOPICS/CONTENTS/NOTES
3. Methods of Economic Analysis
a. Scientific Approach:
i.   inductive and deductive methods 
ii.   positive and normative reasoning

b.   Basic Tools
i.    tables, charts and graphs
ii. measures of central tendency: mean, median and mode, and their applications.
iii. measures of dispersion; variance, standard deviation, range and their applications;
iv. merits and demerits of the tools.

OBJECTIVES
Candidates should be able to:
(i)   distinguish  between  the  various forms of reasoning; 
(ii) apply these forms of reasoning to real life situations;
(iii) use the tools to interpret economic data;
(iv) analyse economic data using the tools; 
(v) assess the merits and demerits of the tools.


TOPICS/CONTENTS/NOTES
4.The Theory of Demand
a.i.  meaning and determinants of demand
ii.   demand schedules and curves 
iii.   the  distinction between change in quantity demanded and change in demand.
b.-Types of demand: Composite, derived, competitive etc
c.Elasticity of demand: - determinants, measurements, nature  and  applications  (e.g. revenue). 
d. Effects of changes  in the determinants (price,  income and cross elasticities).

OBJECTIVES
Candidates should be able to:
(i)   identify the factors determiningdemand; 
(ii) interpret demand curves from demand schedules;
(iii) differentiate between change in quantity demanded and in demand; 
(iv) compare the various types of demand and their interrelationships; 
(v) relate the determinants to the nature of elasticity; 
(vi) compute elasticities; 
(vii) interpret elasticity coefficients in relation to real life situations.


TOPICS/CONTENTS/NOTES
5.The Theory  of  Consumer Behaviour
a.   Basic Concepts:
i.   utility (cardinal, ordinal an marginal utilities) 
ii.   value in use.and value in exchange 
iii.  indifference curve and budget line.

b.Diminishing marginal utility and the law of demand.

c.Consumer equilibrium using the indifference curve and marginal analyses.

d.Effects of shift in me budget line and the indifference curve.

e.Consumer surplus and its applications.

OBJECTIVES
Candidates should be able to:
(i)   appraise the various utility concepts;
(ii)  apply the law of demand using the marginal utility analysis;
(iii) use  indifference curve  and marginal  analyses  to determine consumer equilibrium; 
(iv) associate     the income     and substitution effects; 
(v) apply consumer surplus to real life situations.


TOPICS/CONTENTS/NOTES
6.The Theory of Supply
a. i. Meaning and determinants of supply
ii.   Supply schedules and supply curves
iii.  the distinction between change in quantity supplied and change in supply
b.Types of Supply: Joint/complementary, competitive and composite
c.Elasticity of Supply: determinants, measurements,
nature and applications

OBJECTIVES
Candidates should be able to:
(i)    identify the factors determining supply; 
(ii)    interpret supply curves from supply schedules; 
(iii)   Differentiate between change in quantity supplied and change in supply; 
(iv)   Compare the various types of supply and their interrelationships; 
(v)    Relate the determinants to the nature of elasticity; 
(vi)   Compute elasticity coefficients; 
(vii)  Interpret the coefficients in relation to real live situations.


TOPICS/CONTENTS/NOTES
7. The Theory of Price Determination
a.The concept of market and price
b.Functions of the price system
c.i.   Price determination under a free market 
ii. Price legislation and its effects
d.The effects of changes in supply and demand on equilibrium price and quantity

OBJECTIVES
Candidates should be able to:
(i)    express the concepts of market and price; 
(ii)   examine the functions of the price system; 
(iii) evaluate      the      effects      of government interference with the price system; 
(iv) differentiate  between  minimum and maximum price legislation; 
(v)   interpret the effects of changes in supply and  demand     on equilibrium price quantity.


TOPICS/CONTENTS/NOTES
8.The Theory of Production
a.Concepts of production and their interrelationships (TP, AP, MP and the law of variable proportion).
b.Scale of Production:
Internal and external economies of scale and their implications.
c.Production functions and returns to scale
d.Producers' equilibrium isoquant- isocost and marginal analyses.

OBJECTIVES
Candidates should be able to: 
(i)    relate TP, AP and MP with the law of variable proportion; 
(ii)   compare  internal  and  external economies of scale in production and their effects; 
(iii)  identify the types of production functions 
(iv)  compare the different types of returns to the scale and their implications; 
(v)    determine the firm's equilibrium position using the  isoquant- lsocost and marginal analyses.


TOPICS/CONTENTS/NOTES
9.Theory of Costs
a.The concepts of costs:
Fixed, Variable average and marginal
b.Accountants'   and   economists'
notions of cost
c.Short-run and long-run costs
d.The marginal cost and the supply
curve of firm.

OBJECTIVES
Candidates should be able to:
(i)     interpret the various cost concepts
(ii)    differentiate between  accountants'  and economists' notions of costs 
(iii)   interpret the short-run and long-run costs curves 
(iv)   establish the relationship between marginal cost and supply curve.


TOPICS/CONTENTS/NOTES
10.Market Structure
a.Perfectly competitive market:
i.   Assumptions and characteristics;
 ii.   Short-run  and long-run equilibrium  of a perfect competitor;
b.Imperfect Market:
i.   Pure monopoly, discriminatory monopoly and monopolistic competition,
 ii.    Short-run and long-run equilibrium positions.
c.Break-even/shut-down analysis in the various markets.

OBJECTIVES
Candidates should be able to:
(i) analyse the assumptions and characteristics of a perfectly competitive market;
(ii) differentiate between short-run and long-run equilibrium of a perfectly competitive firm;
(iii) analyse the assumptions and characteristics of imperfect markets;
(iv) differentiate between the short-run and long-run equilibria of imperfectly competitive firm;
(v) establish the conditions for the break-even/shut down of firms.


TOPICS/CONTENTS/NOTES
11.National Income
a.Concepts: GNP, GDP, NI etc
b.National Income measurements and their Problems
c.Uses     of    national     incomes estimates
d.The  circular  flow  of income (three-sector model)
e.The multiplier concept.
f.Elementary  theory  of income determination and equilibrium national income.

OBJECTIVES
Candidates should be able to:
(i)     identify the major concepts in national income; 
(ii)   compare the different ways of measuring national income; 
(iii)   examine their problems; 
(iv)   assess the uses and limitations of national income estimates; 
(v)   interpret  the   circular  flow   of income  using   the three-sector model;
(vi)  calculate the multipliers; 
(vii)  evaluate  their effects  on equilibrium national income.


TOPICS/CONTENTS/NOTES
12.Money and Inflation
a.Types and functions of money
b.Demand   for   money   and  the supply of money
c.Quantity    Theory    of   money (Fisher equation)
d.Inflation: Types, measurements, effects and control

OBJECTIVES
Candidates should be able to:
(i)   differentiate between the types and functions of money;
(i)    determine  the  factors  affecting the demand for and the supply of money; 
(iii)  identify the components in the quantity theory of money;
(iv)  examine the causes and effects of inflation;
(v)   calculate   the   consumer   price index; 
(vi)  interpret   the   consumer   price index;
(vii) examine   ways   of  controlling inflation.


TOPICS/CONTENTS/NOTES
13.    Banking
a.Types and functions of banks
b.The creation of money
c.Challenges facing the banking industry  in  Nigeria  (reforms, consolidation)
d.The role of banks in economic development
e.Monetary     policy     and     its instruments.

OBJECTIVES
Candidates should be able to:
(i)    compare the types of banks and their functions; 
(i)     trace the money-creation process and factors affecting it;
(iii)   appraise the challenges facing the banking industry; 
(iv)   examine the role of banks  in economic development;
(v)   examine  the various monetary policy instruments and   their effects. 


TOPICS/CONTENTS/NOTES
14.      Public Finance
a.Meaning and objectives
b.Sources of government revenue (taxes royalties, etc)
c.Principles of taxation
d.The effects of public expenditure
e.Government budget and public debts
f.Revenue allocation and resource control in Nigeria

OBJECTIVES
Candidates should be able to:
(i)    identify the objectives of public finance;
(ii)   compare the various sources of government revenue
(iii)   analyse the principles of taxation; 
(iv)   examine the  effects of public expenditure on the economy; 
(v)    examine the types and effects of budgets; 
(vi)   highlights the criteria for revenue allocation in Nigeria and their impact. 


TOPICS/CONTENTS/NOTES
15.     Economic Growth and Development
a.Meaning and scope
b.Indicators of growth and development
c.Factors affecting growth and development
d.Problems of developmentin Nigeria
e.Developing planning in Nigeria.

OBJECTIVES
Candidates should be able to:
(i)    distinguish between economic growth and development; 
(ii)   highlight the indicators of growth and development;
(iii)  identify the factors affecting growth arid development; 
(iv)   assess  the problems of development in Nigeria;
(v)    examine the role of planning in development;


TOPICS/CONTENTS/NOTES
16.Agriculture in Nigeria
a.The role of agriculture in economic development;
b.Characteristics and problems;
c.Effects of agricultural policies;
d.Instability in agricultural income (causes, effects and solutions)

OBJECTIVES
Candidates should be able to:
(i)     identify the characteristics and problems of agriculture; 
(ii)   assess the role of agriculture in economic development; 
(iii)   appraise some agricultural policies; 
(iv)   evaluate the causes and effects of instability in agricultural income. 


TOPICS/CONTENTS/NOTES
17.Industry and Industrialization
a.Concepts and effect of locationand localization of industry in Nigeria;
b.Problems  of  ndustrialization strategies (e.g. export promotion, import substitution etc)
c.SMEs and economic development in Nigeria

OBJECTIVES
Candidates should be able to:
(i)    differentiate between location and localization of industry; 
(ii)   identify the factors influencing the location and localization of industry; 
(iii)  examine  the  problems  of industrialization; 
(iv)   appraise  some industrialization strategies; 
(v)    examine the role of industry in economic development.


TOPICS/CONTENTS/NOTES
18.    Petroleum  and the Nigerian Economy
a.Development of the petroleum industry in Nigeria;
b.Contributions of petroleum to the Nigerian economy;
c.Linkage effects;
d.Upstream/downstream activities.

OBJECTIVES
Candidates should be able to:
(i)    trace  the  development  of the petroleum industry in Nigeria;
(ii)   assess the contribution of petroleum to the Nigerian economy; 
(iii)  establish the linkages between the petroleum and other sectors; 
(iv)  analyse the environmental effects of exploration activities in Nigeria; 
(v)   distinguish between the upstream and downstream activities; 
(vi)  suggest ways of controlling the effect of oil exploration.


TOPICS/CONTENTS/NOTES
19.    Business Organizations
a.Private enterprises  (e.g. sole- proprietorship, partnership, limited liability companies and cooperative societies)
b.Problems of private enterprises;
c.Public enterprises;
d.Privatization and Commercialization as solutions to the problems of public enterprises.

OBJECTIVES
Candidates should be able to:
(i)    compare  the  types  and  basic features of private business organization; 
(ii)   assess the financing and management problems of business organizations;
(iii)  identify the features of public enterprise;
(iv)  differentiate between privatization and commercialization;
(v)  compare the advantages and disadvantages of privatization and commercialization; 


TOPICS/CONTENTS/NOTES
20.    Population
a.Meaning and theories;
b.Census: importance and problems.
c.Size and growth: overpopulation, under- population and optimum population.
d.Structure and distribution;
e.Population policy and economic development

OBJECTIVES
Candidates should be able to:
(i)   analyse the features of some population theories: 
(ii)  examine the relevant of  the theories to Nigeria;
(iii)   examine the uses and limitations of census data; 
(iv)    identify determinants of the size, composition and growth of population; 
(v)    analyse the  structure  and distribution of population;
(vi)   appraise government


TOPICS/CONTENTS/NOTES
21.    International Trade
a.Meaning and basis for international trade (absolute and comparative costs etc)
b.Balance of trade and balance of payment: problems and corrective measures; 
c.Composition  and. direction  of Nigeria's foreign trade;
d.Exchange rate:  meaning, types and determination.

OBJECTIVES
Candidates should be able to: 
(i)   examine the basis for international trade. 
(ii)  differentiate between absolute and comparative advantages; 
(iii) distinguish between balance of trade and balance of payments and their corrective measures; 
(iv)  highlight the problems of balance of payments and their corrective measures; 
(v)  examine the composition and direction of Nigeria's foreign trade; 
(vi)  identify the types of exchange rates; 
(vii) examine how exchange rates are determined.


TOPICS/CONTENTS/NOTES
22.International Economic Organization
Roles and relevance of international organization e.g.  ECOWAS, AU, EU, OPEC, ECA, IMF, EEC, OECD, World Bank, IBRD, WTO, ADB and UNCTAD etc to Nigeria.

OBJECTIVES
Candidates should be able to:
(i)   identify the various economic organizations and their functions;
(ii)  evaluate their relevance to the Nigerian economy

TOPICS/CONTENTS/NOTES
23.Factors of Production and their
Theories
a.Types, features and rewards;
b. Determination of wages, interest and profits;
c..heories: marginal productivity theory of wages and liquidity preference theory;
d.Factor mobility and efficiency;
e.Unemployment: types, causes and solutions.

OBJECTIVES
Candidates should be able to:
(i)    identify the types; features and rewards of factors; 
(ii)   analyse   the   determination   of wages, interest and profits;
(iii)   interpret themarginal productivity of liquidity preference theories 
(iv)   examine   factors   mobility  and efficiency; 
(v)   examine he types and causes of unemployment in Nigeria;
(vi)   suggest solutions to unemployment in Nigeria.

RECOMMENDED TEXTS
Aderinto, A.A et al (1996) Economics: Exam Focus, Ibadan: University Press Pic.
Black, J. (1997) Oxford Dictionary of Economics. Oxford: Oxford University Press
Eyiyere, D.O. (1980) Economics Made Easy, Benin City, Quality Publishers Ltd.
Fajana, F et al (1999) Countdown to SSCE/JME Economics Ibadan: Evans
Falodun, A.B. et al (1997) Round-up Economics, Lagos: Longman
Kountsoyiannis, A. (1979) Modern Microeconomics, London: Macmillan
LawaL OA. (198S) Success in Economics, London: John Muray.
Lipsey, R.G. (1997) An Introduction to Positive Economics, Oxford: Oxford University Press.
Samuelson, P and Nordhaus, W. (1989) Economics, Singapore: McGraw-Hill
Udu E and Agu GJL. (2005) New System Economics: a Senior Secondary Course, Ibadan: Africana FIRST Publishers Ltd.
Wannacott and Wannacott (1979) Economics, New York: McGraw-Hill.