SCHEMES OF WORK FOR SECOND TERM SS 2 ECONOMICS
WEEK 1: REVISION OF LAST TERM’S WORK
PRODUCTION
PRODUCTION POSSIBILITY CURVE
MEANING AND GRAPHICAL ILLUSTRATION
LAW OF VARIATIBLE PROPORTION
CONCEPTS OF TOTAL AVERAGE AND MARGINAL PRODUCTIVITY
WEEK 2 COST CONCEPT
MEANING OF COST TO AN ACCOUNTANT AND ECONOMIST
TYPES OF COST (TC, FC,VC, AFC,MC ETC)
EXPLAIN WITH SCHEDULE AND GRAPH
SHORT AND LONG RUN COST
WEEK 3 REVENUE CONCEPT
MEANING OF REVENUE TO AN ECONOMIST
TYPES (TOTAL, AVERAGE AND MARGINAL REVENUE)
GRAPHICAL ILLUSTRATION, SCHEDUKE AND CURVE
CALCULATIONS
WEEK 4 ECONOMIC SYSTEM
MEANING OF ECONOMIC SYSTEM
TYPES OF ECONOMIC SYSTEM (CAPITALISM, SOCIALISM, MIXED ECONOMY AND WELFARISM)
FEATURES OF EACH
FACTORS TO BE CONSIDERED IN THE ADOPTION OF ECONOMY SYSTEM
WEEK 5 LABOUR MARKET
MEANING OF LABOUR MARKET
CONCEPT OF LABOUR FORCE
FACTORS AFFECTING THE SIZE OF LABOUR FORCE
EFFICIENCY AND MOBILITY OF LABOUR
WEEK 6 SUPPLY AND DEMAND FOR LABOUR
WAGE DETERMINATION
UNEMPLOYMENT( MEANING AND TYPES)
TRADE UNION
WEEK 7: MARKET STRUCTURE
MEANING AND TYPES OF MARKET (PERFECT AND IMPERFECT)
PERFECT MARKET (MEANING, FEATURES AND MARKET EQUILIBRIUM POSITION ( P = MR = MC= AR = D)
WEEK 8 IMPERFECT MARKET
MEANING AND TYPES ITH GRAPHICAL ILLUSTRATIONS
PRICE DISCRIMINATION
EQUILIBRIUM POSITION (SHORT AND LONG RUN)
WEEK 9 INDUSTRIES IN NIGERIA
MEANING OF PLANTS, FIRM, INDUSTRY AND FACTORY
TYPES OF INDUTRIES (MINING, CONSTRUCTION ETC)
WEEK 10 LOCATION OF INDUSTRY
MEANING OF LOCATION OF INDUSTRY
FACTORS AFFECTING LOCATION OF INDUSTRY
LOCALISATION OF INDSTRY
FACTORS AFFECTING LOCALIZATION OF INDSTRY
ADVANTAGES AND DISADVANTAGES OF LOCALIZATION OF INDSTRIES
WEEK 11 REVISION AND EXAMINATION
WEEK 1
PRODUCTION POSSBILITY CURVE
A production possibility curve (PPC) is a graphical or diagrammatic illustration of all possible bundles or combinations of two types of goods which a society can produce using its present level of resources and given the existing level of technology.
The idea behind the production possibility curve is that in order to produce a particular commodity, the production of another commodity has to be sacrificed.
For example, the production possibility curves for the production of cattle and motor vehicles in South Africa.
Production Possibility Table for The Production of Cattle and Motor vehicles by South Africa
| Possible combination | head of cattle | no of motor vehicles |
| A | 200 | 0 |
| B | 170 | 30 |
| C | 100 | 70 |
| D | 80 | 130 |
| E | 40 | 150 |
| F | 0 | 180 |
The table shows the alternative open to South Africa to substitute the production of cattle for vehicle on a monthly basis, assuming a given state of technology and a given total of resources.
Production Possibility curve for the Production of cattle and motor vehicle in South Africa.
INTERPRETATION OR POINTS TO NOT FROM THE GRAPH
- Points A to F on the graph indicate efficient use of resources
- At points O and P (outside the curve), production is not feasible. Production of these points is not feasible due to the limited resources and technology.
- At point K and L (inside the curve), production is feasible. It represents where resources are not efficiently utilized.
- The downward slope of the PPC indicate that there is an opportunity cost of producing more of one type of commodity and less of the other due to limited resources and technical know how
LAW OF DIMINISHING RETURNS OR VARIALBE PROPORTION
This law refers to a short run production situation. The law of diminishing returns states that as more of the variable factor (e.g. labour or capital) is added to other factors which are constant (e.g. land), outputs will eventually increase at a decreasing rate.
The law of diminishing returns follows three stages, these are;
- Increasing returns
- Constant returns
- Decreasing returns
CONCEPT OF TOTAL PRODUCT (TP), AVERAGE PRODUCT (AP) AND MARGINAL PRODUCT (MP)
- TOTAL PRODUCT (TP): Total product refers to the total quantity of goods produced at a particular time as a result of the use of all the factors of production.
Symbolically written as TP = AP X Q
total Point of diminishing returns
output TP
2. AVERAGE PRODUCT (AP): Average product is defined as the output per unit of the variable factor (labour or capital) employed. This is obtained by dividing the total output by the number of labour or capital employed.Symbolically written as AP:TP/Q
Y
AP
AP
3.MAGINAL PRODUCT (MP): This is the additional product produced as a result of the application of additional unit of a variable factor when all other factors are fixed.
MP
Unit of labour
MP
Symbolically written as MP = CHANGE IN TP/CHANGE IN VARIABLE FACTOR =
TP1 – TPO
Q1 –QO
TOTAL PRODUCT, AVERAGE PRODUCT AND MARGINAL PRODUCT
VARIABLE UNIT FIXED FACTOR TOTAL PRODUCT AVERAGE PRODUCT MARGINAL PRODUCT
OF LABOUR hectares of land (Kg) (Kg) (kg)
1 3 8 8 ……
2 3 18 9 10
3 3 36 12 18
4 3 48 12 12
5 3 55 11 7
6 3 60 10 5
7 3 60 86 0
8 3 56 7 -4
RELATIONSHIP BETWEENTOTAL PRODUCT, AVERAGE PRODUCT AND MARGINAL PRODUCT.
The relationship between total products, average product and marginal product can be demonstrated by a graph. Both TP and MP initially rise. The TP curve remains at maximum point when MP is zero. To declines after MP = 0 and MP afterwards assumes negative values.
QUESTIONS
- Write short note on (a) firm (b) plant (c) industry
Tonnes of fertilizer applied total product in bags marginal product
0 1000 …….
1 1100 100
2 1250 150
3 1500 250
4 …….. 400
5 …….. 250
6 ……. 125
7 2350 ……..
8 2380 ……..
9 2330 ……..