...CERTIFICATION I hereby certify that this work was carried out by AFOLABI, STEPHEN OLADELE in the United Missionary Church of Africa Theological College, Ilorin. ____________________ Date __________________________ Supervisor Rev. Paul Oyeleye B.A (Ibadan) B.Th (UMCATC), M.A (Ibadan). DEDICATION This work is dedicated to GOD ALMIGHTY who granted me the grace of being in His Vineyard. It is also dedicated to my caring parents Dn. & Mrs J.O Afolabi. ACKNOWLEDGEMENT I am grateful to God Almighty for making my dreams come true by successfully led me to complete my course. Also, I acknowledge the financial, moral and spiritual, support given to me by my parent, Dn. And Mrs.J.O. Afolabi , as well as the assistance rendered by people of good will who contributed to the successful completion of this study, some directly, others indirectly.However, my sincere gratitude goes to my able Supervisor Rev Paul Oyeleye who in spite of his numerous assignments, always found time to render all...
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...Economic growth is the increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Economic growth can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation. For comparing one country's economic growth to another, GDP or GNP per capita should be used as these take into account population differences between countries. The economic growth in Africa not only affects the country itself, but in our globalised economy, the change will affect as far as european countries. Firstly, the imports will be cheaper in the UK, this leads to a growth in the standard of living in the UK, as they can now buy more goods and at a cheaper price. The standard of living is the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area. The standard of living includes factors such as income, quality and availability of employment, class disparity, poverty rate, quality and affordability of housing, hours of work required to purchase necessities and a lot more. Also Rwanda is developing tourism successfully, which means UK citizens now have another choice of destination for vacation. Another upside to the growing economy in Africa is that UK now has a bigger export market, this will benefit UK great as we rely on exporting our services and since Africa is now a developing countries, they will need our services more than ever...
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...June 2015 Unit 3 Context 1 Q3 ‘Critics of Big Six might argue that electricity companies should not have electricity companies should not have been privatised as they can never behave or perform like supermarkets.’ (Extract C, lines 15-16) Using the data and your knowledge of economics assess the arguments for and against the government intervening in the UK electricity industry. (25 marks) The big six energy firms effectively have an oligopoly on the UK energy market despite the existence of some smaller firms who are mainly involve in the retail aspect of the market (extract A). The market concentration of these firms and the significant profit margins that they enjoy, as referred to in extract B, would suggest that there exists a strong argument in favour of government intervention in order to protect consumer interest. However any government intervention must be based on sound information so as not to further disrupt the market and potentially result in government failure. Furthermore, if the energy companies’ claim of needing these supernormal profits for the purposes of future investment holds true the government would need to consider the long term implications of intervention such as windfall taxes. Firms in oligopolistic markets have market power and therefore can often use this power to act in an anti-competitive way which is damaging to consumer interests...
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...worker. In the UK economy, the government wishes to achieve full employment, stable prices, a balance of trade where imports do not exceed exports and economic growth. Below, the economic cycle diagram shows that the UK economy is suffering from low productivity at point b where there is spare capacity in the economy. (economic cycle showing that low productivity occurs at point b) In Extract E it states that ‘British workers were 20% less productive than the average for the G7 countries and almost 40% less productive than the average worker in the US’. With the UK having low productivity it means that there will be higher unit costs, as costs will be passed on to consumers in higher prices, which will discourage demand and reduce the overall output. Furthermore, our price competitiveness and trade performance will decrease so businesses will not have competitive advantage in markets. In 2011, UK productivity was below 2007 at an index of 97 compared to 100 in 2007, showing negative productivity growth. (AD diagram shifting leftwards) The diagram above portrays how there will be a reduction in demand for the UK exports but more of a demand for imports which will further reduce aggregate demand shown by a leftward shift from AD1 to AD2 and there is increase in the balance of trade deficit which causes the UK economic growth to decrease however it will reduce the unemployment levels. Low productivity has helped employment levels in the UK in the short run compared...
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...evaluation should be well rewarded. For this question they might comment on the extent of any improvement; what impact this might have on the productivity gap; that we cannot put too much weight on any one factor but must see productivity as part of a wider picture; the extent to which productivity improvements are cancelled out by a rising rate of inflation and/or an appreciating exchange rate; productivity improvements become meaningless if we cannot sell any extra output in world markets for whatever reason, eg recession or poor quality. A maximum of 21 marks should be awarded if there is no explicit reference to the data. Issues and areas for discussion: • definition of macroeconomic performance • components of the macroeconomy • economic growth • price level • employment/unemployment • the balance of payments on current account assuming improved productivity benefits unit costs • labour productivity and how it might affect one or more of the above components • the productivity gap • the UK experience • the significance of the rate of inflation • the significance of exchange rate trends • the significance of macroeconomic conditions in the UK’s overseas markets • the significance of the rate of growth of AD • better productivity being unable to disguise the deindustrialisation that has taken place in the UK • the importance of considering in which sectors of the economy the greatest improvements in productivity are taking place • the extent of any improvement...
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...The UK’s macroeconomic performance can be measured in terms of economic growth, inflation, unemployment and the balance of payments on the current account. One importance of higher labour productivity in the UK is that it means that each member of staff produces more output in the same given time period which will improve the economies position on the PPF by moving closer towards the curve. This is because the economy will be producing more output with the same amount of resources available which indicates a previous under-utilisation of labour in the economy. Furthermore, another importance of higher labour productivity is shown in Extract C, ‘any rise in aggregate demand (AD) will be non-inflationary when improvements in productivity are able to generate greater output,’ which empathises the importance of higher labour productivity in the long-run in terms of economic growth because the output of the economy is increasing without inflation. The benefits of low inflation rates are widespread, particularly to those who have savings. Another reason for why this could be considered is due to the fact that it increases the competiveness of the UK’s trade world-wide, for example because the average cost of producing one good has decreased the firms will have more freedom to lower prices, this has a positive effect on the balance of payment on the current account by bringing it into more surplus. On the other hand, an increase in the labour productivity could potentially result...
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...Using economic knowledge, evaluate different ways in which the government of a country which imports large quantities of wheat can try to stabilise wheat prices? Stabilising wheat prices can be done through a buffer stocks scheme. This is when the government tries to stabilise a market/producer which is producing too little or too much (in the case) wheat. They would do this by buying back a lot of the wheat if it rose above or by giving out some they own in their stock pile to bring production up to the right amount if it dropped below the amount needed by the consumer. This is shown in the diagram below. Wheat Wheat During a good harvest where a larger quantity is produced at Q2 with the price at P2, the government has to intervene by buying some of the stock to enable the producers to return to the equilibrium point of (Q,P) where both the demand and price increase meaning its more profitable for the business than at point (Q2,P2) which is the main objective for a firm. At point (Q1,P1) because of the bad harvest, the price set by the producer is higher than the equilibrium to try and maintain its profits. Unfortunately consumers won’t buy a lot at this price so the government will supply the producers out of its stockpile which in this case is imported in large quantities to stabilise the market. This will mean producers can lower prices to attract more sales from consumers and in turn increase profits. Another way in which the Government which imports large quantities...
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...on inflation and unemployment and a steady rate of economic growth along with a current account stability. Fiscal policy involves the use of government spending and tax receipts to influence the level and pattern of economic activity, whilst monetary policy uses interest rates to achieve the same. Fiscal and monetary policy can be used to influence short term Aggregate Demand with the aim of promoting a steady rate of economic growth, low unemployment and low inflation. In a recession there will be a loosening of monetary policy when interest rates are cut and a budget deficit run with the aim of boosting Aggregate Demand throughout the economy. This is what is happening at the moment in the UK as the economy slowly comes of out recession. Interest rates are down to 0.5% and income tax rates are slowly being cut to act as an incentive to workers to work harder and boost productivity. However, as we see in the UK economy these policies are having a very slow impact on growth. Consumer confidence and business confidence is very low and when this happens cuts in interest rates and taxes will not encourage household and consumers to spend more. They may be tempted to use the extra money to save more and pay off debt rather than spend and this could hinder economic recovery. Inflation in the UK economy was very low between 1992 and 2008 and this allowed interest rates to fall to a low level which helped boost economic growth and living standards in the economy. Now with...
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...Using the data and your economic knowledge, evaluate different ways in which the government of a country which imports large quantities of wheat can try to stabilise wheat prices within the country. (25 marks) Price stability is when prices in the economy don’t change or don’t change much over time. This means that an economy would not experience inflation or deflation. One of the ways in which the government could stabilise wheat princes is through a buffer stock intervention. This is an intervention system that aims to limit the fluctuations of the price of a commodity. Another way in which they could stabilise the price of wheat could be through imposing a price ceiling. A price ceiling is the price level in which the price of a good or service is not allowed to increase past. Wheat is unstable predominantly due to the situation regarding it in Russia. This is because Russia, a major wheat explorer, banned exports of wheat in 2010. This was due to very dry weather and fires destroying a third of the Russian crop. Due to this wheat prices significantly increased in the summer of 2010. Furthermore the wheat market is unstable due to the emerging demand from developing countries such as India and China, thus having a domino effect on other countries. Due to this it has made the Russia situation more than it should have been. Although to combat this farmers have already planted more wheat, began to use less wheat to feed livestock and substituted cheaper grains in their place...
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...Income is a flow of earnings from a stock of capital. Income is earned in the form of wages, interest from savings, dividends from shares, income from pensions or rent from properties. This means that the more capital you have (such as shares savings or property) the more income you get from them. This means that not everybody gets the same income and there are a lot of people that do not get enough. The amount of people currently living below the poverty line is 20 million across the EU. This means that there are a lot of people that are unable to support themselves on the income that they get. This is why the government intervenes and either redistributed the income in the forms of taxes and benefits or they use supply side policies to try and encourage people into higher earning jobs. Redistributing income can be done in several ways; it can be done through a progressive tax system, tax credits or wealth taxes or benefits. A system of progressive direct taxation can reduce income disparities and if combined with a high level of government spending on benefits can achieve income redistribution. In the UK the highest rate of income tax is 45% for those earning more than £150’000 and the lowest income tax rate is the ‘basic rate’ at 20% for earnings of £10’600 to £31’785. The problem that is caused for those taxed and those on benefits is the disincentive effect. Those on higher incomes may decide to work less so that they do not reach the next tax bracket, or take higher incomes...
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...“The Use of Knowledge in Society”, Hayek, Friedrich A. 1. “The peculiar character of the problem of a rational economic order is determined precisely by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated or integrated form, but solely as the dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess (H.3)” a. What does Hayek mean by a “rational economic order”? Hayek “rational economic order” refers to the use of knowledge in a rational form. According to Hayek “data”, from which the economic calculus starts, are not “given” for the whole society. Knowledge is limited when given to us, therefore the need for the best allocation of resources in order to be economically efficient. b. What does Hayek mean by “dispersed bits of incomplete and frequently contradictory knowledge”? It means that people of different spheres of life will have a specific knowledge that they will utilize when needed. For example, business managers possess knowledge in regard to management and profit maximization, whereas a worker might have the knowledge on how to economize in the way he makes product, which perhaps the business manager does not know about it. c. Why is Hayek critical of the common assumptions in economic analysis that buyers, sellers, producers and the economist all know every relevant thing about the economy? Because according to Hayek, Economic theory has...
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...8 & 9 MATHEMATICS, NATURAL SCIENCES AND ECONOMIC AND MANAGEMENT SCIENCES TEACHER DEVELOPMENT PROGRAMME: 2014 DRAFT TIMETABLE TEACHER DEVELOPMENT AUG AUG SEP SEP SEP Thur 28 Fri Wed Thur Fri 29 3 4 5 Classroom-based support: Mathematics Classroom-based support: Natural Sciences Classroom-based support: Natural Sciences Classroom-based support: Mathematics Classroom-based support: Economics and Management Sciences Development of subject content knowledge & teaching skills: Economics and Management Sciences Development of subject content knowledge & teaching skills: Natural Sciences Development of subject content knowledge & teaching skills: Mathematics SEP SEP SEP SEP Sun Fri Sat Fri 7 12 13 19 Development of subject content knowledge & teaching skills: Natural Sciences Development of subject content knowledge & teaching skills: Mathematics Classroom-based support: Mathematics Development of subject content knowledge & teaching skills: Mathematics Classroom-based support: Natural Sciences Classroom-based support: Economics and Management Sciences Development of subject content knowledge & teaching skills: Economics and Management Sciences Development of subject content knowledge & teaching skills: Natural Sciences Classroom-based support: Economics and Management Sciences Development of subject content knowledge & teaching skills: Economics and Management Sciences Classroom-based support: Mathematics Development of subject content knowledge & teaching skills: Mathematics Classroom-based...
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...Alternatives, and Choices Multiple Choice Questions 1. Economics is the study of: A. increasing the level of productive resources so there is maximum output in society. B. increasing the level of productive resources so there is a minimum level of income. C. how people, institutions, and society make choices under conditions of scarcity. D. the efficient use of scarce resources paid for at the minimum level of cost to consumers and businesses. 2. The primary focus of the study of economics is with: A. expanding the production of goods and services. B. equalizing the distribution of consumer income and wealth. C. making the most efficient use of scarce productive resources. D. reallocating resources from consumption to production in the economy. 3. The general concern of economics is with the study of the: A. degree of competition in stock and bond markets in the economy. B. efficient use of limited productive resources to satisfy economic wants. C. issue of equality in the distribution of income and wealth among households. D. budget deficits in the domestic economy and trade deficits in the international economy. 4. Which of the following is not a central focus of the "economic perspective"? A. Scarcity and choice. B. The scientific method. C. Purposeful behavior. D. Marginal analysis. 5. The term scarcity in economics refers to the fact that: A. economic wants are limited and resources are abused. B. even in the richest...
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...KNOW ABOUT ECONOMICS ______________________ A Research Proposal Presented to the Department of Business Economics College of Business Administration and Accountancy MSU-Iligan Institute of Technology ______________________ In Partial Fulfilment of the requirements for the Course Economics 102 Econometrics _____________________ Jaycris C. Arquion August 2013 Ignorance in Economics Subject is not offered in the course taken courses that offers economics subject lack of interest promotional activity of the subject CHAPTER 1 Introduction CHAPTER 2 Review of Related Literature This study discusses the factors why people do not know economics. The researcher gathered the related literatures that are considerably helpful in conducting this study. This chapter encompasses the following categories which are mainly the economics and its meaning, the benefits of knowing economics and reasons why people are oblivious about economics. Economics and its Meaning People of today’s generation are only aware of economics as an activity in which only supply and demand of a certain product is concerned. According to Robbins (2013), Economics is the study of given ends and scarce means. It is the science which studies the human behavior as a relationship between given ends and scarce means which have alternative uses. In connection to this, Economics is all about making choices. Meanwhile, Caplan and Henderson (2013) stated that Economics is not just...
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...Alternatives, and Choices Multiple Choice Questions 1. Economics is the study of: A. increasing the level of productive resources so there is maximum output in society. B. increasing the level of productive resources so there is a minimum level of income. C. how people, institutions, and society make choices under conditions of scarcity. D. the efficient use of scarce resources paid for at the minimum level of cost to consumers and businesses. 2. The primary focus of the study of economics is with: A. expanding the production of goods and services. B. equalizing the distribution of consumer income and wealth. C. making the most efficient use of scarce productive resources. D. reallocating resources from consumption to production in the economy. 3. The general concern of economics is with the study of the: A. degree of competition in stock and bond markets in the economy. B. efficient use of limited productive resources to satisfy economic wants. C. issue of equality in the distribution of income and wealth among households. D. budget deficits in the domestic economy and trade deficits in the international economy. 4. Which of the following is not a central focus of the "economic perspective"? A. Scarcity and choice. B. The scientific method. C. Purposeful behavior. D. Marginal analysis. 5. The term scarcity in economics refers to the fact that: A. economic wants are limited and resources are abused. B. even in the richest...
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