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PUBLIC FINANCE

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PUBLIC FINANCE  This is an aspect of economics which relates to income and expenditure of the government. Every government has various project to execute and government has to derive means of generating income.  BUDGET Budget is a financial statement by the government showing revenue and proposed expenditure for the coming financial year.  A budget consist of packaging of proposals regarding revenue which is likely to be derived from various sources and expenditure which is likely to be met on various items TYPES OF BUDGET DEFICIT BUDGET: A deficit budget means that governments planned revenue for the year is greater than the expenditure.  SURPLUS BUDGET: A surplus budget means that the planned government expenditure is less than the estimated government revenue.  BALANCE BUDGET: This is when the planned government expenditure is equal to the estimated government revenu What is Fiscal policy? Fiscal policy involves the use of government income and expenditure instruments to regulate th

MONEY

  MONEY Money may be defined as  anything which serve as a medium o f exchange.Anything which is generally acceptable can serve as money. Before the introduction of money ,  the method of exchange that took place was  by means of barter wehereby goods were exchange for  goods  EVOLUTION OF MONEY In ancient times, people were self-sufficient and everybody produced commodities needed to meet their personal needs, but with time specialization began to set in and everybody started producing what they could produce best. This led to what is today known as Barter System of Trade i.e. exchange of goods for goods. People exchange what they had for what they want, but the problem that came along with the barter system was so much that people started looking for a way out. The search leads to the following Development of Commodities; to be used as money e.g. cowries, shells, hides and skins, cereals, etc. soon it was discovered that all these things are easy to come and not scarce at all. Soon p

BASIC ECONOMIC PROBLEMS OF EVERY SOCIETY

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BASIC ECONOMIC PROBLEMS OF EVERY SOCIETY. Every society battles with the following Economic problems. Economic problems of what to produce, how to produce it, for whom to produced, efficient utilization of resourses and future growth of the Economy, WHAT TO PRODUCE It explains what kinds of goods to produce, that is what types of goods to produce and be made available for consumer satisfaction. HOW TO PRODUCE How to produce explains the methods of production to apply in production, is it capital intensive, which involves the use of machine for Mass production and efficiency. Is it labour intensive where manual labour will be applied. Decision will be taken on this. FOR WHOM TO PRODUCE This explains the category of people the production is meant in terms of age and population structure. Are the products meant for the children, adults or the old people. EFFICIENT UTILIZATION OF SCARCE RESOURCES This explains how limited available resources will be managed without waste. No idle resources

How to construct a pie chart

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A PIE CHART  This is a circle divided into sectors whose angles are proportional to the frequencies of the items. They are represented in degrees or percentages. The whole circle is 360 and it is measured by the use of protractor. It is referred to as pie https://youtu.be/rXoHqVWKtr0 SIMILAR CHARTS RELATED TO PIE CHART 1. DOUGHNUT CHART A doughnutut chart (also spelled donut) is a variant of the pie chart, with a blank center allowing for additional information about the data as a whole to be included. Doughnut charts are similar to pie charts in that their aim is to illustrate proportions.[citation needed] This type of circular graph can support multiple statistics at once and it provides a better data intensity ratio to standard pie charts. It does not have to contain information in the center. 2. EXPLODED PIE CHART  This is a chart with one or more sectors separated from the rest of the disk is known as an  exploded pie chart . This effect is used to either highlight a sector, or to

ABNORMAL SUPPLY

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  EXCEPTION TO THE LAW OF SUPPLY Exceptional or Abnormal Supply: is the supply pattern which does not abide by the law of supply, and therefore, gives rise to the reverse of the basic law of supply which states that the higher the price, the higher the quantity of commodity that will be supplied by the producer, and vice-versa. An abnormal supply also called a Regressive or Backward Sloping Supply Curve. Shows that at higher price, less quantity will be supplied. That is a negative situation in which a fall in the price of a commodity leads to an expansion of its supply. Causes of abnormal supply are as itemized below: 👉Existence of some fixed assets whose prices increase without a  corresponding increase in its size, eg Land 👉Rising wages of labour where a worker tends increase his leisure time and reduce his productive working hours at high wage rate 👉A producer with a particular target income may go on supplying the market with his commodities even when prices fall. 👉Monopolisti

SCOPE AND NATURE OF ECONOMICS

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 : NATURE AND SCOPE OF ECONOMICS Economics like other social subject has no specific definition because there are economists that see the subject from different views., they may be interested in different aspect of Economics such as Monetary Economics, Industrial Economics, Business Economics, Welfare Economics, Micro Economics, Macro Economics e.t.c. They therefore define Economics to reflect their interest. Examples are:  1.Prof. A.C. Piqou: In his book, the economics of welfare, defined economics as the study of human actions in relations to materials or economic welfare.  2.Alfred Marshal: Economics is the study of mankind in other business of life. 3. Adams Smith: He defined economics as an enquiry into the nature and causes of wealth of nations . Adam Smith is regarded as the father of economics theory. 4.H.J Davenport: He said economics is the science that treat phenomena from the standpoint of price”.  6.J.S Mills: In his own contribution, J.S Mills defined economics as a pra

LESSONS FROM THE ASIAN TIGERS

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  ASIAN TIGERS The Asian Tigers are made up of four countries in East Asia e.g South Korea, Taiwan, Singapore and Hong Kong.They all went through rapid growth by going through industrialisation since the year 1960s. They were also referred to as third world countries. The major reason behind their growth is that they found their comparative advantage EG Singapore and Hong Kong is considered as intern kmational finance centre why Taiwan and South Korea are majorly manufacturer of information technology equipment. LESSONS FROM THE ASIAN TIGERS Creation of stable macroeconomics environment they were able to create an environment which is conducive to business E.G they were able to achieve success in the area of budget deficit and external debt.. Government investment in education through universal primary education literacy level reduces and increase on cognitive skill. Introduction of export-oriented policy they introduce various policies on health support free trade was also introduced