PRINCIPLES OF ECONOMICS FOR GRADES 10 - 12

0 Lesson 1: Introduction to Economics Free 23:36

Learning Objectives 1. To explain the nature of Economics 2. To explain the use of the social scientific method in Economics

1 Practice Exercise 1 Solutions 05:13

2 Lesson 2: Microeconomics Versus Macroeconomics 12:03

This lesson distinguishes between the two main branches of the subject and explores the main categories of each branch.

3 Practice Exercise 2 Solutions 03:13

Short video lesson providing answers to the practice exercise

4 Lesson 3: Model-building in Economics 21:13

This lesson describes how Economics as a social science, uses models to describe how the real world works.

5 Practice Exercise 3 Solutions 03:19

6 Lesson 4: Positive Versus Normative Economics 21:19

This lesson examines the role of factual statements and those based on opinions in economic decision-making.

7 Practice Exercise 4 Solutions 03:50

8 Lesson 5: Basic Organizations and Economic Institutions 16:49

Learning Objectives 1. To use the circular flow of income model to identify economic institutions 2. To explain basic economic agents and organisations.

9 Practice Exercise 5 Solutions 05:22

10 Lesson 6: The Basic Economic Problem 22:32

The issue of scarce economic resources and how they are allocated amongst numerous competing human needs and wants is explained in this lesson.

11 Practice Exercise 6 Solutions 01:47

12 Lesson 7: Factor Markets 23:42

Households provide inputs or factors of production that firms engage in the production of goods and services. This lesson analyses the four factors of production, how they are combined and transformed into output. The rewards that each factor receives are also explained.

13 Practice Exercise 7 Solutions 02:25

14 Lesson 8: Product markets 18:08

Product markets involve the exchange of goods between firms (producers or sellers) and households (consumers or buyers). This lesson analyses the types of goods/ services that are exchanged in the product market.

15 Practice Exercise 8 Solutions 02:24

16 Lesson 9: The Production Possibilities Curve 22:28

Having discussed scarce resources and the unlimited human needs and wants, in the last couple of lessons, we will now consider how choices are made and the concept of opportunity cost. The production possibilities curve is used to illustrate opportunity cost.

17 Practice Exercise 9 solutions 03:44

18 Lesson 10: Key Themes in Economics 22:00

This lesson examines four major themes that govern the study of Economics. Points of disagreement between economists on these themes are also discussed.

19 Practice Exercise 10 Solutions 04:21

20 Lesson 11: What Questions Do Economic Systems Seek to Answer? 20:43

In every society, there are three basic questions that have to be answered in allocating scarce resources and distributing the output produced. This lesson will discuss these questions and why they are important.

21 Practice Exercise 11 Solutions 04:22

22 Lesson 12: Economic Systems and Decision-Making 24:08

This lesson outlines the basic economic decision-making units in a society and outlines examples of economic decisions that they have to make. It also identifies that factors that determine the making of rational economic decisions.

23 Practice Exercise 12 Solutions 04:24

24 Lesson 13: Free Market Economic System 34:34

This lesson examines the first of the three economic systems employed by societies and countries to make decisions on how scarce resources will be allocated.

25 Practice Exercise 13 Solutions 03:50

26 Lesson 14: Planned and Mixed Economic Systems 30:32

We continue with our analysis of economic systems by discussing planned economies and mixed economic systems. A comparison of the three economic systems in terms of features, advantages and disadvantages wraps up the lesson as well as Section 1.

27 Practice Exercise 14 04:51

28 Lesson 15: Competitive Markets and Demand 26:23

This lesson identifies different types of markets based on what is traded and the geographical area covered. It also looks at the behaviour of buyers as illustrated by the demand curve and the law of diminishing marginal utility.

29 Practice Exercise 15 Solutions 03:09

30 Lesson 16: Movements Along The Demand Curve 20:36

The use of a demand schedule (table) to plot a demand curve is illustrated. The reasons for the downward shape of the demand curve are explored. Changes in the price of a product and the impact these have on quantity demanded are also analysed.

31 Practice Exercise 16 Solutions 02:09

32 Lesson 17: The Determinants of Demand 28:26

In this lesson, the non-price factors that contribute to an increase or decrease in demand (shift of the demand curve) are explained. The demand diagram is used to analyse the impact of the shifts in demand.

33 Practice Exercise 17 Solutions 06:17

34 Lesson 18: Elasticity of Demand 30:13

The law of demand explains the direction of change in quantity demanded when the price of a product changes. However, it does not explain the magnitude of this change. this lesson explains how the concept of price elasticity of demand is used to measure the responsiveness of demand to changes in the price of the product.

35 Practice Exercise 18 Solutions 06:35

36 Lesson 19: The Supply Curve and its Determinants 23:57

This lesson starts with a definition of supply and explains how a supply schedule is used to derive a supply curve. The law of supply and movements along the same supply curve are explored. Changes in the price of a product will contribute to an increase in the quantity supplied (contraction in demand), as producers/ sellers have an incentive to produce more. However, changes in other factors that affect supply will contribute to a shift in demand. This lesson will examine the factors that affect supply and show how the supply curve shifts.

37 Practice Exercise 19 Solutions 07:32

38 Lesson 20: Price Elasticity of Supply (PES) 33:52

According to the law of supply, there's a positive relationship between the price of a product and quantity supplied. This means a change in price causes the quantity supplied to increase. However, the law of supply does not explain the magnitude of this change. Price Elasticity of Supply helps to measure the responsiveness of quantity supplied to the change in the price of the product. This lesson explores the concept of PES and its determinants.

39 Practice Exercise 20 Solutions 03:48

40 Lesson 21: Price- Reaching an Equilibrium 25:53

Having considered the concepts of demand and supply, we now examine how the two concepts interact in the market. The point at which the two intersect, equilibrium, indicates that both consumers and producers are happy to pay the equilibrium price. This lesson analyses how markets reach and maintain the equilibrium point.At prices above or below the equilibrium price, the quantity demanded and supplied will be unequal creating a state of instability in the market. This lesson uses examples to discuss how shortages and surpluses are created in the market and how the market reacts to re-establish equilibrium.

41 Practice Exercise 21 solutions 06:37

42 Lesson 22: Linear Demand and Supply Functions 30:40

Having examined how prices are determined in free markets, we now use a numerical analysis to explain how demand and supply curves are derived from linear demand and supply functions. In this lesson, we conduct simple equations through which we are able to see how equilibrium price and quantity are determined. We also use an example of indirect taxes to see how prices changes in the determinants of demand and supply affect the equilibrium position.

43 Practice Exercise 22 Solutions 04:44

44 Lesson 23: Efficiency in The Market 28:38

In this lesson the concepts of consumer and producer surplus are introduced with the demand-supply analysis used to illustrate them. It further explains that at the equilibrium price, community surplus is maximised and that any interference in the market is likely to create inefficient allocation of resources. The meaning of productive and allocative efficiency is also explained.

45 Practice Exercise 23 Solutions 04:06

46 Lesson 24: Market Failure- Negative Externalities 21:39

Having examined how the price mechanism works in free market economies, we now turn our attention to the causes and consequences of market failure. This refers to a situation in which the market is unable to allocate resources efficiently. The actions of producers and consumers contribute to negative or positive effects on third parties.

47 Practice Exercise 24 Solutions 05:13

48 Lesson 25: Market Failure- Positive Externalities 29:22

This lesson uses market diagrams to explain how the actions of producers and consumers affect third parties positively. For example, firms that train their workers may benefit other companies to which those workers move. Such companies also help to improve the quality of the country's pool of human resources.

49 Practice Exercise 25 Solutions 04:13

50 Lesson 26: Basic Private Sector Organisations 26:34

This lesson- the first in unit 3- Business Economics- introduces the sub-topics that will be covered in the unit. These range from basic business organisations and how they compete to employment and wages as well as banking institutions. The lesson looks at how individuals start businesses and the questions they have to answer. it also explores the issues a business needs as well as its objectives before analysing the advantages and disadvantages of sole trader and partnership businesses.

51 Practice Exercise 26 Solutions 04:22

52 Lesson 27: Limited Companies 16:09

Learning Objectives 1. To explain the meaning of incorporation 2. To distinguish between private and public limited companies 3. To analyse the advantages and disadvantages of limited companies

53 Practice Exercise 27 Solutions 04:10

54 Lesson 28: Multinational Corporations 25:21

We now look at a type of business organisation whose role in global business continues to increase with the spread of globalisation. Multinational corporations (MNCs) are businesses with operations in more than one country. This lesson discusses the reasons a business would like to become a multinational as well as the benefits and limitations to both the busin

55 Practice Exercise 28 Solutions 06:39

56 Lesson 29: The Size and Growth of Firms 28:38

We identify the different factors used to measure the size of firms. The lesson then examines the internal and external methods used by firms to expand in size before considering the benefits and costs of growth also known as economies and diseconomies of scale.

57 Practice Exercise 29 Solutions 06:13

58 Lesson 30: Production Costs in the Short and Long Run 29:40

The lesson starts with a distinction between the short and long run periods in production. It then considers the different types of costs incurred in production before examining the economies and diseconomies of scale

59 Practice Exercise 30 Solutions 03:42

60 Lesson 31: Revenues, Profits and Goals of Firms 26:09

In this lesson, we seek to understand how businesses make revenues and what they spend these on. We also distinguish between the accountant's and economist's profits before looking at the different types of economic profits.

61 Practice Exercise 31 Solutions 03:08

62 Lesson 32: Perfect Competition and Monopoly 28:47

We examine the features of two market structures- monopoly and oligopoly and compare their revenues and cost structures both in the short and long run.

63 Practice Exercise 32 Solutions 05:42

64 Lesson 33: Oligopoly and Monopolistic Competition 27:56

In our examination of market structures, we explore the features of oligopolistic firms and compare them with those of a monopolistic competition structure. We end the lesson with a comprehensive comparison of the four market structures.

65 Practice Exercise 33 Solutions 04:30

66 Lesson 34: Employment and Wages 25:52

This lessons turns our attention to employment and occupations. We look at the wage and non-wage factors that attract workers to a business organisation. We also consider measures taken by the government to correct market failure in the labour market.

67 Practice Exercise 34 Solutions 04:27

68 Lesson 35: Wage Differentials 26:05

Learning Outcomes 1. To define occupational wage differentials and explain what causes them. 2. To explain why earnings differ between people doing the same job. 3. To analyse why governments intervene in labour markets.

69 Practice exercise 35 Solutions 05:48

70 Lesson 36: Money and Finance 26:16

In this lesson, we examine the functions of money and the role played by interest rates in attracting business investment.

71 Practice Exercise 36 Solutions 03:22

72 Lesson 37: Banking and the Financial Institutions 24:55

This lesson defines financial institutions and the role they play in the money market. We also explain the role of commercial banks and how central banks control and regulate the financial system in an economy.

73 Practice Exercise 37 Solutions 03:16

74 Lesson 38: Consumer Behaviour 29:14

LEARNING OBJECTIVES 1. To analyse the different motives for spending, saving and borrowing 2. To explain reasons for rising trends in global consumption

75 Practice Exercise 38 Solutions 04:28

76 Introduction to Section 4 03:25

This video provides a short introduction to the lessons to be covered in Unit 4- Macroeconomics

77 Lesson 39: The Macroeconomy 27:55

In this lesson, we revisit the circular flow of income and use it to examine economic concepts that impact upon the whole economy. The lesson looks at injections into and leakages from the circular flow of income. Using the circular flow model we then look at how economic activity is measured.

78 Practice Exercise 39 Solutions 05:47

79 Lesson 40: Measuring National Income 29:35

80 Practice Exercise 40 Solutions 04:55

81 Lesson 41: The Business (Trade) Cycle 20:46

In this lesson, we develop the concept of economic growth further using a formula to show how it is calculated. We then introduce the business cycle and consider the features of each of its phases before analysing its practical application.

82 Practice Exercise 41 Solutions 05:23

83 Lesson 42: Aggregate Supply 25:06

84 Practice Exercise 42 Solutions 03:55

85 Lesson 43: Macroeconomic Equilibrium 24:13

In this lesson, we combine Aggregate Demand with Aggregate Supply to create the short-run and long-run macroeconomic equilibrium. In the short-run, we explore the impact of shifts in the AD and AS. The long-run analysis compares the Keynesian model to the Neo-classical/ monetarist model to explain equilibrium when a country reaches its potential output.

86 Practice Exercise 43 Solutions 05:21

87 Lesson 44: Macroeconomic Objectives and Economic Growth 22:41

In this lesson, we introduce the five main economic objectives: high economic growth; low and stable prices; low unemployment; balance of payment and equitable distribution of income. We then embark on discussing GDP and economic growth.

88 Practice Exercise 44 Solutions 04:22

89 Lesson 45: Causes of and Measuring Unemployment 22:35

We look at the second macroeconomic objective- low unemployment. We discuss key terminology relating to employment before outlining the methods used to calculate the rate of unemployment. We also discuss different types and causes of unemployment.

90 Practice Exercise 45 Solutions 04:46

91 Lesson 46: Measures to Reduce Unemployment 27:54

We look at the consequences of inflation on: a) the unemployed b) the government c) the economy. We also discuss different approaches to reducing the impact of unemployment.

92 Practice Exercise 46 Solutions 03:19

93 Lesson 47: The Consumer Price Index and Causes of Inflation 23:05

We define inflation, deflation and disinflation before explaining how the consumer price index (CPI) is used to measure the rate of inflation. We also analyse the causes of inflation: demand pull and cost push inflation.

94 Practice Exercise 47 Solutions 04:20

95 Lesson 48: Consequences and Measures to Control Inflation 24:08

This lesson examines the positive and negative consequences of inflation and deflation. It also analyses the effectiveness of measures used by the government to control inflation.

96 Practice Exercise 48 Solutions 03:09

97 Lesson 49: Equitable Distribution of Income 27:56

In this lesson, we focus on the fourth macroeconomic objective- equitable distribution of income and wealth. We distinguish between equity and equality in the distribution of resources as well as identifying reasons for the inequality. We also examine the use of the Lorenz curve and Gini coefficient in measuring inequality.

98 Practice Exercise 49 Solutions 04:07

99 Lesson 50: Achieving Equitable Income Distribution 22:32

Lesson Objectives 1. To distinguish between progressive, regressive and proportional tax systems 2. To explain how governments use tax revenues to redistribute income 3. To evaluate the effectiveness of measures used to promote equity in the distribution of income.

100 Practice Exercise 50 Solutions 04:36

101 Lesson 51: Fiscal Policy 25:17

Learning outcomes 1. To identify and explain sources of government revenue 2. To explain government spending and its role in achieving government objectives 3. To analyse the importance of government budgets.

102 Practice Exercise 51 Solutions 04:06

103 Lesson 52: Monetary Policy 18:15

104 Practice Exercise 52 Solutions 01:54

105 Lesson 53: Supply-Side Policies 20:16

Learning outcomes 1. To define and give examples of supply-side policies. 2. To explain how supply-side policies work to achieve macroeconomic objectives 3. To analyse conflicts that arise from application of macroeconomic policies

106 Practice Exercise 53 Solutions 03:22

107 Introduction to Section 5 04:19

108 Lesson 54: The World Trade Organisation and Free Trade 13:32

Learning Objectives: 1. To explain the meaning of international trade and specialisation 2. To explain the benefits that countries gain from trade 3. To explain the functions and objectives of the WTO.

109 Practice Exercise 54 Solutions 05:07

110 Lesson 55: Trade Protectionism 23:53

Learning Objectives: 1. To define and give examples of trade protectionism 2. To explain the role of import tariffs in protecting trade 3. To explain non-tariff measures of protectionism

111 Practice exercise 55 solutions 02:27

112 Lesson 56: Free Trade Versus Protectionism 20:49

Learning Objectives: 1. To discuss the arguments against trade protectionism 2. To discuss the arguments in favour of trade protectionism 3. To discuss the moral aspect in the argument in favour of free trade

113 Practice Exercise 56 Solutions 03:24

114 Lesson 57: Exchange Rates 17:54

Learning Objectives: 1. To explain the meaning of exchange rates 2. To explain how value of an exchange rate is determined by demand and supply in a floating system 3. To discuss how governments intervene in the foreign exchange market

115 Practice Exercise 57 Solutions 03:56

116 Lesson 58: Economic Integration 27:54

Learning Objectives: 1. To define and give examples of economic integration 2. To explain the stages of economic integration 3. To analyse the benefits and costs of economic integration

117 Practice Exercise 58 Solutions 03:42

118 Lesson 59: The Global Population 29:22

Learning Objectives: 1. To describe factors that affect population growth 2. To discuss the reasons for different rates of population growth in different countries 3. To analyse the consequences of these population changes for the different countries.

119 Practice Exercise 59 Solutions 02:52

120 Lesson 60: Structure of the Population 19:10

Learning Objectives 1. To describe the characteristics of populations 2. To explain the importance of population pyramids in explaining age and sex distribution 3. To illustrate population density and the occupational distribution of population.

121 Practice Exercise 60 Solutions 03:14

122 Lesson 61: Economic Development 13:30

Learning Objectives: 1. To distinguish between economic growth and development 2. To explain the multi-dimensional nature of economic development 3. To distinguish between economically more developed and less developed economies

123 Practice Exercise 61 Solutions 02:21

124 Lesson 62: Common Characteristics of Developing Countries 24:05

Learning Objectives: 1. To explain, using examples, the common characteristics that less economically developed countries (LEDCs) share 2. To explain the meaning of the poverty trap- vicious cycle of poverty 3. To explain, using examples, that LEDCs differ enormously from each other.

125 Practice Exercise 62 Solutions 03:00

126 Lesson 63: Measuring Economic Development 20:02

Learning Objectives: 1. To explain the complexities of measuring economic development 2. To analyse the use of single indicators used as measures of economic development 3. To explain the measures that make up the Human Development Index (HDI)

127 Practice Exercise 63 Solutions 04:47

128 Lesson 64: Domestic Barriers to Economic Development 17:34

Learning Objectives: 1. To explain the role played by education and healthcare in the development of a nation 2. To analyse the need for appropriate technology and microcredit for economic development 3. To explain how poor infrastructure acts a barrier to economic development

129 Practice Exercise 64 Solutions 05:12

130 Lesson 65: Trade Problems Facing LEDCs 12:34

Learning Objectives: 1. To explain how over-specialisation on a narrow range of products acts as an obstacle to economic development 2. To discuss the consequences of the inability of LEDCs to access international markets

131 Practice Exercise 65 Solutions 05:17

132 Lesson 66: Trade Strategies for Economic Development 20:22

Learning Objectives: 1. To evaluate the role of import substitution as a means to achieve economic development 2. To evaluate the role of export promotion as a means to achieve economic development 3. To evaluate the role of diversification as a means to achieve economic development

133 Practice Exercise 66 Solutions 04:23

134 Lesson 67: Global Economic Challenges- Foreign Aid 20:15

Learning Objectives: 1.To define the different types of foreign aid 2. To evaluate the contribution of foreign aid to economic development 3. To compare the merits of aid to those of trade for economic development

135 Practice Exercise 67 Solutions 04:00

136 Lesson 68: Global Economic Challenges- Foreign Debt 08:59

Learning Objectives: 1. To explain the problem of foreign debt and its origins 2. To explain the consequences of a high level of debt 3. To evaluate the issue of debt cancellation in heavily indebted countries

137 Practice Exercise 68 Solutions 04:20