Economics

A budget may be defined as a financial statement of the total estimated revenue and the proposed expenditure of a government in a given period, usually a year. FUNCTION / USES / IMPORTANCE OF BUDGETS National budget is used to achieve the following objectives It is used as a means of raising revenue It is […]

Taxation– is defined as the act of imposing a compulsory levy by the government on the income of individuals, firms, and goods and services. That is, it is a compulsory payment made by each eligible citizen towards the expenditure of the country. It is a compulsory contribution imposed by a government authority on goods, individuals,

Public finance– is defined as an aspect of economics which deals with the financial activities as relate to Income, Expenditure and the National Debts operations, with their overall effects on the economy. That is, it is the management and control of government income and expenditure to achieve government’s policy objectives.  It involves a detailed analysis

Inflation This is a persistent rise in the general level of price of goods and services.  Inflation occurs when there is an increase in money supply without corresponding increase in volume of production.   TYPES OF INFLATION Demand – Pull Inflation Cost – Push Inflation Hyper-Inflation Creeping Inflation   Demand – Pull Inflation – This

MONEY MARKET Money market is a market where short term securities are traded in.  The market comprises of institutions or individuals who either have money to lend or wish to borrow on a short-term basis.   INSTRUMENTS USED IN THE MONEY MARKET Treasury Bills Treasury Certificate Bill of exchange Call money funds Treasury Bill –

DEMAND FOR MONEY Demand For Money: is the total amount of money which an individual, for various reasons, wish to hold. That is, it is the desire to hold money in terms of keeping one’s resources in liquid form rather than spending it. The demand for money in economics is known as Liquidity Preference. MOTIVES

THE CONCEPT OF LABOUR FORCE Labour force can be defined as the total number of people of working age in a country who are gainfully employed and those who fall within the age bracket, capable and willing to work by law but have no work to do in a country at a particular period of

THE MALTHUSIAN THEORY OF POPULATION The Malthusian theory of population is the outcome of an essay title ‘An essay on population written in 1798 by Reverend Thomas Robert Malthus, an Anglican clergyman and a well-known political economist.  The essay he wrote was influenced greatly by the rate at which the population in Europe at that

A population census refers to the head – count of the people. It is the process by which the number of people living in a country or a given geographical area is counted. It developed countries it is carried out by the government at regular intervals, usually every ten years. Population census provides information about

Population refers to the total number of people living within a geographical area or country at a particular time. FACTORS AFFECTING POPULATION GROWTH There are three major factors which determine the size and rate of growth of a country’s population. These can be summarized in the following formula; r = Birth Rate – Death Rate

A private limited liability company is defined as one which by its activities restricts the rights to transfer its shares, limits the number of its shareholders from two to fifty, and prohibits any invitation to the public to subscribe for its shares and the name of the private liability company must end with the abbreviation

Business organization can be defined as an enterprise set up by an individual or group of individuals, government or its agencies for the main purpose of making profit and providing goods and services for the satisfaction of human wants. TYPES OF BUSINESS ORGANISATIONS PRIVATE ENTERPRISES: Private enterprises are the enterprises owned and managed by private

FIRM The firm is an independently administered business unit carrying out production, construction, or distribution activities. Examples of firms in Nigeria are Dangote Cement, Cadbury Nigeria Plc. PLANT This is the same as the factory. It consists of the tools, equipment, machines and buildings of a business concern. It is a business establishment or the

SCALE OF PRODUCTION This simply means the size of a firm’s productive capacity. The scale of production also refers to the size of the operation adopted by the firm. A firm can be a small scale or medium scale or large scale depending on its capacity. Small-scale production: This occurs when the productive capacity of

Division of Labour is defined as a system of breaking down production processes into different stages so that each stage is undertaken or handled by an individual or group of an individual. The principle of the division of labour is a major characteristic of present–day economic systems. ADVANTAGES OF DIVISION OF LABOUR Increase in the

Capital can be defined as wealth reserved or set aside for the production of further wealth. Capital also refers to all man – made productive assets, that is all man – made wealth or goods used to produce other goods and services. Examples of capital are machines, tools, factory, buildings, raw material, fuel, money, semi-finish

Localisation of  industries refers to the concentration of many firms of an industry in a particular area. Advantages And Disadvantages Of Localisation Localisation has both merits and limits. They are enumerated below. Advantages Reputation – The place where an industry is localised gains reputation and so do the products produced there. As a consequent, articles

Location of industry refers to the siting of an industry in a particular place.                       Factors Influencing Industrial Location Generally, the location of industries is influenced by economic considerations though certain non-economic considerations also might influence the location of some industries. Maximization of profit which

Meaning Industry An industry consists of a group of firms producing broadly similar commodities. Examples are the shoe industry, the transport industry, the cement industry, etc. The production side of business activity is referred to as industry. It is a business activity, which is related to the raising, producing, processing or manufacturing of products. The

An imperfect market may be defined as a market in which prices of goods or services can easily be influenced by the sellers or buyers. In other words, an imperfect market is a market situation in which the force of demand and supply do not operate freely.