Economics
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 structures, operations and roles of the various economic units
and institutions (national and international);
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3. describe major economic activities – production, distribution and consumption;
4. identify and appraise the basic and current economic problems of society;
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5. develop the competence to proffer solutions to economic problems identified.
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lgDETAILED SYLLABUS
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TOPICS/CONTENTS/NOTES OBJECTIVES
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1. Economics as a science Candidates should be able to:
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a. Basic Concepts: (i) compare various concepts in economics
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Wants, Scarcity, choice, scale of and their applications;
preference, opportunity cost, Rationality,
(ii) interpret graphs/schedules in relation to
production, distribution, consumption.
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the concepts;
bi. Economic problems of:
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(iii) identify economic problems;
What, how and for whom to produce and
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efficiency of resource use. (iv) proffer solutions to economic problems
bii. Application of PPF to solution of economic
problems.
Candidates should be able to:
2. Economic Systems
(i) compare the various economic systems;
a. Types and characteristics of free
(ii) apply the knowledge of economic
enterprise, centrally planned
systems to contemporary issues in
and mixed economies
Nigeria
b. Solutions to economic problems under
(iii) proffer solutions to economic problems
different systems
in different economic systems.
c. Contemporary issues in economic systems
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(economic reforms e.g deregulation,
banking sector consolidation, cash policy
reform).
3. Methods and Tools of Economic Analysis Candidates should be able to:
a. Scientific Approach: (i) distinguish between the various forms of
i. inductive and deductive methods reasoning;
ii. positive and normative reasoning (ii) apply these forms of reasoning to real life
situations;
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b. Basic Tools
i. tables, charts and graphs (iii) use the tools to interpret economic data;
ii. measures of central tendency: mean, (iv) analyse economic data using the tools;
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median and mode, and their (v) assess the merits and demerits of the tools.
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applications. lg
iii. measures of dispersion; variance,
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standard deviation, range and their
applications;
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iv. merits and demerits of the tools.
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4. The Theory of Demand Candidates should be able to:
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a. i. meaning and determinants of demand (i) identify the factors determining demand;
ii. demand schedules and curves (ii) interpret demand curves from demand
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iii. the distinction between change in schedules;
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quantity demanded and change in (iii) differentiate between change in quantity
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demand. demanded and change in demand;
b. Types of demand: (iv) compare the various types of demand and
Composite, derived, competitive and their interrelationships;
joint demand: (v) relate the determinants to the nature of
c. Types, nature and determinants of elasticity;
elasticity and their measurement - (vi) compute elasticities;
price, income and cross elasticity of (vii) interpret elasticity coefficients in relation
demand: to real life situations.
d. Importance of elasticity of demand to
consumers, producers and government.
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5. The Theory of Consumer Behaviour Candidates should be able to:
a. Basic Concepts: (i) explain the various utility concepts;
i. utility (cardinal, ordinal, total (ii) apply the law of demand using the
average and marginal utilities) marginal utility analysis;
ii. indifference curve and budget (iii) use indifference curve and marginal
line. analyses to determine consumer
equilibrium;
b. Diminishing marginal utility and the law (iv) relate the income and substitution effects;
of demand. (v) apply consumer surplus to real life
c. Consumer equilibrium using the situations.
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indifference curve and marginal
analyses.
d. Effects of shift in the budget line and the
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indifference curve.
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e. Consumer surplus and its applications. lg Candidates should be able to:
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6. The Theory of Supply (i) identify the factors determining
a. i. Meaning and determinants of supply;
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supply (ii) interpret supply curves from supply
ii. Supply schedules and supply curves schedules;
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iii. the distinction between change in (iii) differentiate between change in quantity
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quantity supplied and change in supplied and change in supply;
supply (iv) compare the various types of supply and
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b. Types of Supply: their interrelationships;
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Joint/complementary, competitive and (v) relate the determinants to the nature of
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composite elasticity;
c. Elasticity of Supply: (vi) compute elasticity coefficients;
determinants, measurements, nature and (vii) interpret the coefficients in relation to real
applications live situations.
7. The Theory of Price Determination Candidates should be able to:
a. The concepts of market and price (i) explain the concepts of market and price;
b. Functions of the price system (ii) examine the functions of the price system;
c. i. Equilibrium price and quantity in (iii) evaluate the effects of government
product and factor markets interference with the price system;
ii. Price legislation and its effects (iv) differentiate between minimum and
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d. The effects of changes in supply and maximum price legislation;
demand on equilibrium price and (v) interpret the effects of changes in supply
quantity. and demand on equilibrium price and
quantity.
8. The Theory of Production Candidates should be able to:
a. Meaning and types of production (i) relate TP, AP and MP with the law of
b. Concepts of production and their variable proportion;
interrelationships (TP, AP, MP and the (ii) compare internal and external economies
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law of variable proportion). of scale in production and their effects;
c. Division of labour and specialization (iii) identify the types of production functions
d. Scale of Production: (iv) compare the different types of returns to
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Internal and external economies of scale the scale and their implications;
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and their implications. lg (v) determine the firm’s equilibrium position
e. Production functions and returns to using the isoquant-isocost and marginal
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scale analyses.
f. Producers’ equilibrium isoquant-isocost (vi) identify the factors affecting productivity.
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and marginal analyses.
g. Factors affecting productivity.
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9. Theory of Costs and Revenue Candidates should be able to:
a. The concepts of cost: (i) explain the various cost concepts
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Fixed, Variable, Total Average and (ii) differentiate between accountants’ and
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Marginal economists’ notions of costs
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b. The concepts of revenue: Total, average (iii) interpret the short-run and long-run costs
and marginal revenue; curves
c. Accountants’ and Economists’ notions (iv) establish the relationship between marginal
of cost cost and supply curve.
d. Short-run and long-run costs (v) explain the various revenue concepts.
e. The marginal cost and the supply curve
of firm.
Candidates should be able to:
10. Market Structures
(i) analyse the assumptions and
a. Perfectly competitive market:
characteristics of a perfectly competitive
i. Assumptions and characteristics;
market;
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ii. Short-run and long-run equilibrium (ii) differentiate between short-run and long-
of a perfect competitor; run equilibrium of a perfectly competitive
firm;
b. Imperfect Market: (iii) analyse the assumptions and
i. Pure monopoly, discriminatory characteristics of imperfect markets;
monopoly and monopolistic (iv) differentiate between the short-run and
competition. long-run equilibria of imperfectly
ii. Short-run and long-run equilibrium competitive firms;
positions. (v) establish the conditions for the break-
even/shut down of firms.
c. Break-even/shut-down analysis in the
various markets.
11. National Income Candidates should be able to:
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a. The Concepts of GNP, GDP, NI, NNP (i) identify the major concepts in national
b. National Income measurements and income;
their problems (ii) compare the different ways of measuring
c. Uses and limitations of national income national income;
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estimates (iii) examine their problems;
d. The circular flow of income (two and (iv) assess the uses and limitations of
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three-sector models) national income estimates;
e. The concepts of consumption, (v) interpret the circular flow of income
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investment and savings using the two and three-sector models;
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f. The multiplier and it effects (vi) calculate the various multipliers;
g. Elementary theory of income (vii) evaluate their effects on equilibrium
determination and equilibrium national national income;
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income. (viii) explain the concepts of consumption,
investment and savings.
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12. Money and Inflation Candidates should be able to:
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a. Types, characteristics and functions of (i) explain between the types,
money characteristics and functions of money;
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b. Demand for money and the supply of (ii) identify the factors affecting the
money demand for and the supply of money;
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c. Quantity Theory of money (Fisher (iii) examine the relationship between the
equation) value of money and the price level;
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d. The value of money and the price level (iv) identify the components in the quantity
e. Inflation: Types, measurements, effects theory of money;
and control (v) examine the causes and effects of
f. Deflation: Measurements, effects and inflation;
control. (vi) calculate the consumer price index;
(vii) interpret the consumer price index;
(viii) examine ways of controlling inflation.
(ix) Examine the causes, measurement,
effects and control of deflation.
13. Financial Institutions Candidates should be able to:
a. Types and functions of financial (i) Identify the types and functions of
institutions (traditional, central bank, financial institutions;
mortgage banks, merchant banks, (ii) Explain the roles of financial
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insurance companies, building institutions in economic development;
societies); (iii) Distinguish between the money and
b. The role of financial institutions in capital markets;
economic development; (iv) Identify the various financial sector
c. Money and capital markets regulators and their functions;
d. Financial sector regulations (v) Explain the money creation process and
e. Deposit money banks and the creation its challenges;
of money (vi) Examine the various monetary policy
f. Monetary policy and its instruments instruments and their effects;
g. Challenges facing financial institutions (vii) Appraise the challenges facing the
in Nigeria. financial institutions in Nigeria.
Candidates should be able to:
14. Public Finance
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(i) identify the objectives of public finance;
a. Meaning and objectives (ii) explain fiscal policy and its instruments;
b. Fiscal policy and its instruments (iii) compare the various sources of
c. Sources of government revenue (taxes government revenue
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royalties, rents, grants and aids) (iv) analyse the principles of taxation;
d. Principles of taxation (v) analyse the incidence of taxation and its
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e. Tax incidence and its effects effects;
f. The effects of public expenditure (vi) examine the effects of public
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g. Government budget and public debts expenditure on the economy;
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h. Revenue allocation and resource control (vii) examine the types and effects of
budgets;
in Nigeria.
(viii) highlight the criteria for revenue
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allocation in Nigeria and their impact.
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15. Economic Growth and Development Candidates should be able to:
a. Meaning and scope (i) distinguish between economic growth
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b. Indicators of growth and development and development;
c. Factors affecting growth and (ii) highlight the indicators of growth and
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development development;
d. Problems of development in Nigeria (iii) identify the factors affecting growth and
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e. Development planning in Nigeria. development;
(iv) examine the problems of development in
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Nigeria;
(v) examine the role of planning in
development;
16. Agriculture in Nigeria Candidates should be able to:
a. Types and features; (i) identify the types and features of
b. The role of agriculture in economic agriculture;
development; (ii) examine the characteristics and problems
c. Problems of agriculture; of agriculture;
d. Effects of agricultural policies and their (iii) assess the role of agriculture in economic
effects; development;
e. Instability in agricultural incomes (iv) appraise agricultural policies in Nigeria;
(causes, effects and solutions). (v) evaluate the causes and effects of
instability in agricultural incomes.
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17. Industry and Industrialization Candidates should be able to:
a. Concepts and effects of location and (i) differentiate between location and
localization of industry in Nigeria; localization of industry;
b. Strategies and Industrialization in (ii) identify the factors influencing the
Nigeria; location and localization of industry;
c. Industrialization and economic (iii) examine the problems of
industrialization;
development in Nigeria;
(iv) appraise some industrialization
d. Funding and management of business strategies;
(v) examine the role of industry in economic
organization;
development.
e. Factors determining the size of firms.
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18. Natural Resources and the Nigerian Candidates should be able to:
Economy
(i) trace the development of the major
a. Development of major natural resources natural resources in Nigeria;
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(petroleum, gold, diamond, timber etc); (ii) assess the contribution of the oil and the
b. Contributions of the oil and the non-oil non-oil sectors to the Nigerian economy;
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sectors to the Nigerian economy; (iii) establish the linkages between the natural
c. Linkage effects; resources and other sectors;
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d. Upstream/downstream of the oil sector; (iv) analyse the environmental effects of
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e. The role of NNPC and OPEC in the oil exploitation activities in Nigeria;
sector; (v) distinguish between the upstream and
f. Challenges facing natural resources downstream activities in the oil sector ;
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exploitation. (vi) examine the roles of NNPC and OPEC in
the oil sector;
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(vii) suggest ways of controlling the effects of
natural resources exploitation.
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19. Business Organizations Candidates should be able to:
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a. Private enterprises (e.g. sole- (i) compare the types and basic features of
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proprietorship, private business organization;
partnership, limited liability companies (ii) assess the financing and management
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and cooperative societies) problems of business organizations;
b. Problems of private enterprises; (iii) identify the features of public enterprises;
c. Public enterprises and their problems; (iv) identify the factors determining the size
d. Funding and management of business of firms;
organizations; (v) differentiate between privatization and
e. Factors determining the size of firms; commercialization;
f. Privatization and Commercialization as (vi) compare the advantages and
solutions to the problems of public disadvantages of privatization and
enterprises. commercialization;
20. Population Candidates should be able to:
a. Meaning and theories; (i) analyse some population theories:
b. Census: importance and problems. (ii) examine the relevance of the theories to
Nigeria;
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c. Size and growth: over-population, under- (iii) examine the uses and limitations of census
population and optimum population. data;
d. Structure and distribution; (iv) identify determinants of the size, composition
e. Population policy and economic and growth of population;
development. (v) analyse the structure and distribution of
population;
(vi) appraise government population policy in
Nigeria.
21. International Trade Candidates should be able to:
a. Meaning and basis for international trade (i) examine the basis for international trade.
(absolute and comparative costs etc) (ii) differentiate between absolute and
b. Balance of trade and balance of comparative advantages;
payments: problems and corrective (iii) distinguish between balance of trade and
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measures; balance of payments and their corrective
c. Composition and direction of Nigeria’s measures;
foreign trade; (iv) highlight the problems of balance of payments
d. Exchange rate: meaning, types and and their corrective measures;
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determination. (v) examine the composition and direction of
Nigeria’s foreign trade;
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(vi) identify the types of exchange rates;
(vii) examine how exchange rates are determined.
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Candidates should be able to:
22. International Economic Organizations
(i) identify the various economic organizations
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Roles and relevance of international
and their functions;
organization e.g. ECOWAS, AU, EU, ECA,
(vii) evaluate their relevance to the Nigerian
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IMF, EEC, OECD, World Bank, IBRD,
economy
WTO, ADB and UNCTAD etc to Nigeria.
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Candidates should be able to:
23. Factors of Production and their Theories
(i) identify the types; features and rewards of
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a. Types, features and rewards; factors;
b. Determination of wages, interest and
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(ii) analyse the determination of wages, interest
profits; and profits;
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c. Theories: marginal productivity theory (iii) interpret the marginal productivity of liquidity
of wages and liquidity preference preference theories
theory; (iv) examine factors mobility and efficiency;
d. Factor mobility and efficiency; (v) examine the types and causes of
e. Unemployment and its solutions unemployment in Nigeria;
(vi) suggest solutions to unemployment in Nigeria.
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Economics
RECOMMENDED TEXTS
Aderinto, A.A et al (1996) Economics: Exam Focus, Ibadan: University Press Plc.
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
Lipsey, R.G. (1997) An Introduction to Positive Economics, Oxford: Oxford University Press.
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Samuelson, P and Nordhaus, W. (1989) Economics, Singapore: McGraw-Hill
t.c
Udu E and Agu G.A. (2005) New System Economics: a Senior Secondary Course, Ibadan: Africana FIRST
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Publishers Ltd.
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Wannacott and Wannacott (1979) Economics, New York: McGraw-Hill.
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Brownson-oton Richard (2010) What is Micro-Economics? Niky Printing and Publishing coy.
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Brownson-oton Richard (2010) What is Macro-Economics? Niky Printing and Publishing coy.
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