Economics O Level Notes

550.00

Book Code : 143
Number of Pages : 230
Author : Imran Latif
Language : English
Publishers : Read and Write Publications

 

Categories: ,

Description

TABLE OF CONTENTS
UNIT 1 BASIC ECONOMIC PROBLEM …………………………………………………………………………………………………………. 14
BASIC ECONOMIC PROBLEM ………………………………………………………………………………………………………………………………… 14
PRODUCTION POSSIBILITY CURVE …………………………………………………………………………………………………………………………… 17
UNIT 2 DEMAND, SUPPLY AND EQUILIBRIUM ……………………………………………………………………………………………. 24
DEMAND ………………………………………………………………………………………………………………………………………………………. 24
SUPPLY ………………………………………………………………………………………………………………………………………………………… 30
EQUILIBRIUM …………………………………………………………………………………………………………………………………………………. 35
INTERDEPENDENT MARKETS & PRICES …………………………………………………………………………………………………………………….. 38
UNIT 3 ELASTICITY …………………………………………………………………………………………………………………………………. 42
INTERPRETING THE ELASTICITY FIGURES ……………………………………………………………………………………………………………………. 42
ELASTICITY OF DEMAND ……………………………………………………………………………………………………………………………………… 43
PRICE ELASTICITY OF SUPPLY (PES) ………………………………………………………………………………………………………………………… 52
UNIT 4 PRODUCTION AND COST ……………………………………………………………………………………………………………… 60
COST OF PRODUCTION ………………………………………………………………………………………………………………………………………. 62
REVENUE, PROFIT, LOSS & BREAK EVEN ………………………………………………………………………………………………………………….. 65
SPECIALIZATION ………………………………………………………………………………………………………………………………………………. 67
RETURNS TO SCALE …………………………………………………………………………………………………………………………………………… 68
ECONOMIES OF SCALE……………………………………………………………………………………………………………………………………….. 69
DIFFERENT SIZE OF FIRMS AND INTEGRATION ……………………………………………………………………………………………………………. 71
UNIT 5 TYPES OF BUSINESS ORGANISATIONS ……………………………………………………………………………………………. 76
MULTINATIONAL CORPORATIONS (MNC) ………………………………………………………………………………………………………………… 76
UNIT 6 MARKET STRUCTURES AND BUSINESS OBJECTIVES …………………………………………………………………………. 82
OBJECTIVES OF FIRMS ……………………………………………………………………………………………………………………………………….. 82
MARKET STRUCTURES ……………………………………………………………………………………………………………………………………….. 85
ARE MONOPOLIES ALWAYS BAD FOR CONSUMERS? ……………………………………………………………………………………………………. 88
UNIT 7 ECONOMIC SYSTEMS & ALLOCATION OF RESOURCES ……………………………………………………………………….. 92
TYPES OF INDUSTRIES IN AN ECONOMY ……………………………………………………………………………………………………………………. 92
BASIC ECONOMIC QUESTIONS & ALLOCATION OF RESOURCES ………………………………………………………………………………………….. 92
ECONOMIC SYSTEMS …………………………………………………………………………………………………………………………………………. 93
UNIT 8 MARKET FAILURE ……………………………………………………………………………………………………………………….. 96
MARKET FAILURE: ……………………………………………………………………………………………………………………………………………. 97
USING AND CONSERVING RESOURCES ……………………………………………………………………………………………………………………. 101
PUBLIC EXPENDITURE VERSUS PRIVATE EXPENDITURE ………………………………………………………………………………………………… 101
COMPARISON OF EXPENDITURES BY PUBLIC AND PRIVATE SECTORS ………………………………………………………………………………… 102
UNIT 9 LABOUR MARKET ……………………………………………………………………………………………………………………… 104
WAGE DETERMINATION …………………………………………………………………………………………………………………………………… 104
TRADE UNION ………………………………………………………………………………………………………………………………………………. 108
ROLE OF TRADE UNION IN AN ECONOMY ………………………………………………………………………………………………………………… 111
WAGE DIFFERENTIALS ……………………………………………………………………………………………………………………………………… 111
TYPES OF LABOUR EARNINGS ……………………………………………………………………………………………………………………………… 114
FACTORS AFFECTING CHOICE OF OCCUPATION ………………………………………………………………………………………………………… 115
CHANGES IN THE EARNINGS OF INDIVIDUALS OVER TIME …………………………………………………………………………………………….. 117
UNIT 10 SPENDING, SAVING AND BORROWING ……………………………………………………………………………………… 120
2
INCOME ……………………………………………………………………………………………………………………………………………………… 120
SPENDING/CONSUMPTION ……………………………………………………………………………………………………………………………….. 120
SAVINGS …………………………………………………………………………………………………………………………………………………….. 122
BORROWING ………………………………………………………………………………………………………………………………………………… 123
DIFFERENCES IN EXPENDITURE PATTERNS OF DIFFERENT INCOME GROUPS ………………………………………………………………………….. 124
UNIT 11 GOVERNMENT MICROECONOMICS INTERVENTION ……………………………………………………………………… 126
1. TAXATION ………………………………………………………………………………………………………………………………………………… 126
2. SUBSIDIES ………………………………………………………………………………………………………………………………………………… 130
3. REGULATIONS……………………………………………………………………………………………………………………………………………. 130
THE GOVERNMENT AS A PRODUCER AND AN EMPLOYER ……………………………………………………………………………………………… 132
NATIONALIZATION AND PRIVATIZATION …………………………………………………………………………………………………………………. 133
THE GOVERNMENT AS AN EMPLOYER …………………………………………………………………………………………………………………… 134
UNIT 12 MONEY AND BANKING …………………………………………………………………………………………………………… 136
MONEY………………………………………………………………………………………………………………………………………………………. 136
BANKING …………………………………………………………………………………………………………………………………………………….. 138
STOCK EXCHANGE ………………………………………………………………………………………………………………………………………….. 139
UNIT 13 NATIONAL INCOME, AD & AS ………………………………………………………………………………………………….. 142
SECTORS AND TYPES OF ECONOMIES: …………………………………………………………………………………………………………………… 143
AGGREGATE DEMAND (AD): ……………………………………………………………………………………………………………………………… 143
AGGREGATE SUPPLY (AS) …………………………………………………………………………………………………………………………………. 147
INTERACTION OF AGGREGATE DEMAND AND AGGREGATE SUPPLY AND NATIONAL INCOME EQUILIBRIUM ………………………………………. 148
CHANGES IN NATIONAL INCOME EQUILIBRIUM …………………………………………………………………………………………………………. 149
BUSINESS (TRADE) CYCLE …………………………………………………………………………………………………………………………………. 150
UNIT 14 INFLATION ……………………………………………………………………………………………………………………………. 154
MEASUREMENT OF INFLATION / VALUE OF MONEY / COST OF LIVING ……………………………………………………………………………… 155
THE CAUSES OF INFLATION ………………………………………………………………………………………………………………………………… 158
THE CONSEQUENCES OF INFLATION ………………………………………………………………………………………………………………………. 160
CAUSES AND CONSEQUENCES OF DEFLATION …………………………………………………………………………………………………………… 163
UNIT 15 EMPLOYMENT AND UNEMPLOYMENT ……………………………………………………………………………………… 166
THE CAUSES OF UNEMPLOYMENT ………………………………………………………………………………………………………………………… 166
FULL-EMPLOYMENT / NATURAL RATE OF UNEMPLOYMENT (NRU) …………………………………………………………………………………. 168
THE CONSEQUENCES OF UNEMPLOYMENT ………………………………………………………………………………………………………………. 168
POLICIES TO CORRECT UNEMPLOYMENT …………………………………………………………………………………………………………………. 169
THE PATTERN AND TRENDS IN (UN)EMPLOYMENT ……………………………………………………………………………………………………… 169
UNIT 16 ECONOMIC GROWTH ……………………………………………………………………………………………………………… 172
COSTS AND BENEFITS OF GROWTH ……………………………………………………………………………………………………………………….. 174
UNIT 17 POPULATION ………………………………………………………………………………………………………………………… 176
SIZE OF POPULATION ………………………………………………………………………………………………………………………………………. 176
POPULATION PYRAMIDS …………………………………………………………………………………………………………………………………… 180
AGEING POPULATION ………………………………………………………………………………………………………………………………………. 182
UNIT 18 ECONOMIC DEVELOPMENT AND STANDARD OF LIVING ……………………………………………………………… 184
GDP AND STANDARD OF LIVING ………………………………………………………………………………………………………………………….. 185
ECONOMIC DEVELOPMENT ……………………………………………………………………………………………………………………………….. 187
INCOME AND WEALTH INEQUALITY ……………………………………………………………………………………………………………………… 188
THE NATURE AND CAUSES OF POVERTY …………………………………………………………………………………………………………………. 189
3
UNIT 19 INTERNATIONAL TRADE: …………………………………………………………………………………………………………. 192
THEORIES OF INTERNATIONAL TRADE: …………………………………………………………………………………………………………………… 192
PROTECTIONISM ……………………………………………………………………………………………………………………………………………. 192
THE ARGUMENTS IN FAVOUR OF FREE TRADE AND AGAINST PROTECTIONISM ………………………………………………………………………. 195
THE ARGUMENTS IN FAVOUR OF PROTECTIONISM AND AGAINST FREE TRADE ………………………………………………………………………. 196
UNIT 20 EXCHANGE RATE ……………………………………………………………………………………………………………………. 200
DEFINITIONS AND MEASUREMENT OF EXCHANGE RATES ………………………………………………………………………………………………. 200
EXCHANGE RATE SYSTEMS …………………………………………………………………………………………………………………………………. 200
CAUSES OF EXCHANGE RATE DEPRECIATION ……………………………………………………………………………………………………………. 204
CAUSES OF EXCHANGE RATE APPRECIATION ……………………………………………………………………………………………………………. 206
EFFECTS OF DEPRECIATION/DEVALUATION …………………………………………………………………………………………………………….. 208
EFFECTS OF APPRECIATION/REVALUATION ………………………………………………………………………………………………………………. 209
ADVANTAGES AND DISADVANTAGES OF EXCHANGE RATE SYSTEMS: …………………………………………………………………………………. 211
THE TERMS OF TRADE ……………………………………………………………………………………………………………………………………… 214
UNIT 21 BALANCE OF PAYMENTS …………………………………………………………………………………………………………. 218
COMPONENTS OF THE BALANCE OF PAYMENTS …………………………………………………………………………………………………………. 219
BALANCE OF PAYMENT DISEQUILIBRIUM ………………………………………………………………………………………………………………… 222
CAUSES OF BALANCE OF PAYMENT DISEQUILIBRIUM …………………………………………………………………………………………………… 222
CONSEQUENCES OF A CURRENT ACCOUNT DEFICIT AND A CURRENT ACCOUNT SURPLUS ………………………………………………………….. 223
UNIT 22 GOVERNMENT MACROECONOMIC INTERVENTION …………………………………………………………………….. 226
GOVERNMENT MACROECONOMIC AIMS: ……………………………………………………………………………………………………………….. 226
CONFLICTS AMONG MACROECONOMIC AIMS: ………………………………………………………………………………………………………….. 227

Reviews

There are no reviews yet.

Be the first to review “Economics O Level Notes”

Your email address will not be published. Required fields are marked *