SS2 Third Term Economics Senior Secondary School Lesson Note
Scheme Of Work
WEEK 1 MONEY
WEEK 2 FINANCIAL INSTITUTIONS
WEEK 3 INFLATION
WEEK 4: PUBLIC FINANCE
WEEK 5: SOURCES OF GOVERNMENT REVENUE
WEEK 6: BUDGET
WEEK 7: CAPITAL MARKET
WEEK 8: NATIONAL INCOME
WEEK 9 THEORY OF INCOME DETERMINATION
WEEK10: THEORY OF MULTIPLIER
Economics Lesson Note for SS2 Third Term
Below are the 2022 complete SS2 Third Term Economics Lesson Note
WEEK 1
What is Money?
Money is defined as anything that is generally acceptable as a medium of exchange and in the settlement of debts. It is a means of payment, and can also be defined as any verifiable item or record that is generally accepted by people as a means for payment for goods/services. Money can either be a legal tender within a given territory (as in the case of the naira) or it may have global recognition as it is the case with strong currencies such as the dollar, Pound and Franc.To learn more, Click here
There are two major types of financial institutions we shall be looking at in the cause of this lesson. These are- the Money Market and the Capital Market. To learn more, Click here
WEEK 3
What is Inflation?
Inflation is an economic situation whereby there is a continuous rise in the over all prices of all types of products and services. It therefore causes serious economic hardship and is typically pronounced when people cannot easily afford the basic necessities of life. Economists measure inflation as an annual percentage increase such that when there is inflation in 2017 as against the year before, every naira you have in 2017 can only purchase less than what it was capable of purchasing the year before. In other words, the value of the naira automatically depreciates during inflation. And by “depreciate”, we mean that its purchasing power drops; often drastically. Take for instance, assuming the current inflation rate in Nigeria is three percent, then every bottle of Coca Cola (which previously sold for N100) will then sell for N130. So to simply put it, inflation makes it impossible for your naira to buy what it used to buy. To learn more, Click here
WEEK 4
For Economists, Public Finance can be defined as the study of the direct role of Government in the economy. It is preoccupied with assessing and analysing government revenue and the expenditure of the public authorities towards the achievement of desirable effects. Public Finance can also be defined from the perspective of analysing the sources of government revenue; the collection of taxes and how said money collected for taxes are used for the provision of public goods by the governments.
To reiterate the fact, Public Finance deals with government expenditure and revenue. It examines everything from taxation to public borrowing and lending, allocation of funds from the federal to the state and local governments and all the agencies of government. To learn more, Click here
WEEK 5
This is an economic term for describing how the tax burden between buyers and sellers is divided. It is said to be directly related to the price elasticity of demand and supply such that when supply is more elastic than demand, the buyers bear the tax burden. On the flip side, if demand is more elastic than supply, producers bear the tax burden. The incident of taxation, therefore, represents the distribution of the tax obligations that must be covered whenever there is a buying and selling. It is important to bear in mind that the level at which each party participates in covering the tax obligation shifts based on the associated price elasticity of the product/service in question as well as how the product/service is currently affected by the principles of demand and supply. In any case, never forget that the whole essence of taxation is to raise money for public expenditure.
WEEK 6
Budget
A budget could be defined as the quantitative expression of any financial plan specified for a certain period. It could entail everything from planned sales volumes, resource quantities, costs and expenses, assets, and liabilities to expected cashflows/profits. It basically expresses the strategic financial plans of businesses, and organizations over defined time frames. A budget can also be defined as the sum of money allocated for a particular purpose and the summary of intended expenditures along with proposals for how to meet them. It is the estimated revenue and expenses over a specified [future] period of time, usually compiled and re-evaluated on a periodic basis. To learn more, Click here
WEEK 7
What is a Capital Market?
A capital market is any financial market in which long-term debts and equity-backed securities are traded (i.e., bought and sold). These securities are typically Capital markets are defined as markets in which money is provided for periods longer than a year. Capital markets channel the wealth of savers to those who can put such wealth to long-term productive use; such as companies or even governments making long-term investments. The capital is typically overseen by financial regulators or monitors such as the Nigerian Securities and Exchange Commission (SEC).
Modern capital markets are almost invariably hosted on computer-based electronic trading systems; most can be accessed only by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public. There are many thousands of such systems, most serving only small parts of the overall capital markets. To learn more, Click here
WEEK 8
Everything to know about National Income
National income is the total value a country’s final output of all new goods and services produced in one year. The simplest way to think about national income is to consider what happens when one product is manufactured and sold. Typically, goods are produced in a number of ‘stages’, where raw materials are converted by firms at one stage, then sold to firms at the next stage. To learn more, Click here
WEEK 9
The circular flow of income
The circular flow of income and spending shows connections between different sectors of an economy. It shows flows of goods and services and factors of production between firms and households. The circular flow also shows how national income or Gross Domestic Product is calculated. The circular flow of income can also be defined as an economic model in which the major exchanges are represented as flows of money, goods and services, etc.To learn more, Click here
WEEK 10
The Theory of Multiplier: An Explanation
The theory of multiplier occupies an important place in the modern theory of income and employment. It states that total increase in income, output or employment is manifold the original increase in investment. Take for example- if an investment to the tune of N50,000 is made, then the income will not just be N50,000, but a multiple of the same amount of initial investment.
Therefore, if the national income increases to N150,000 due to the initial investment of N50,000, then the multiplier is equals to 3; etc. In this vein therefore, the multiplier can be seen as the ratio of increment in investment. To learn more, Click here
