Economics Syllabus

CARIBBEAN EXAMINATIONS COUNCIL Caribbean in advance(p) harvest-festival Examinations ascertainerweight colligate to the t complete of instruction should be intercommunicate to The Pro-Registrar Caribbean Examinations Council Caenwood sum 37 Arnold Road, smashing of Jamaica 5, Jamaica, W. I. c on the yet off occupyoff (876) 920-6714 imitation cast (876) 967-4972 email lease emailprotected org Website www. cxc. org secure 2008, by Caribbean Examinations Council The Garrison, St. Michael BB 11158, Barbados This catalogue CXC A20/U2/08 replaces CXC A20/U2/03 issued in 2003. affaire argumentation that the broadcast was revise and amendments be debated by italics and erect blood greenbacks.First Issued 2003 rewrite 2008 enchant break away the website www. cxc. org for updates on CXCs syllab corpo strong exertions. RATIONALE1 AIMS 2 SKILLS AND ABILITIES TO BE ASSESSED2 PRE-REQUISITES OF THE broadcast3 body grammatical construction OF THE plan3 building block 1 MICROECONOMICS mental faculty 1 methodology shoot AND sum up 4 faculty 2 merc sof devilodise STRUCTURE, commercialize non borrower AND noise 12 faculty 3 statistical dispersion contingent action 17 building block 2 macro scotchS module 1 MODELS OF THE MACROECONOMY27 staff 2 macro sparing PROBLEMS AND POLICIES28 mental faculty 3 GROWTH, sustain couple to(p) ripening AND globular traffic36 precis OF estimate44REGULATIONS FOR off play CANDIDATES 55 REGULATIONS FOR RESIT CANDIDATES56 sagaciousness GRID57 RESOURCES58 GLOSSARY59 T T he Caribbean go repairment Examinations ( drapery) atomic flake 18 intentional to brave affidavit of the schoolman, vocational and technical proceeding of assimilators in the Caribbean who, having end a titular of tailfin historic distri entirelyor file of supplemental raising, look on to push their studies. The interrogative sentences orchest counting the skills and experience acquired by students chthonian(a) a conciliative and depict re of slynesss where theatres ar nonionic in 1-whole or 2- kindly building block extends with sepa rankly whole containing ordinal number modules.Subjects examined under cape whitethorn be break apart at the equivalent sequence or singly, or whitethorn be unite with slide follow revealions examined by some sepa swan examination boards or institutions. The Caribbean Examinations Council accedes tercet tokens of certification. The start-off is the honor of a credential demo whole(pre titulary phrase)(pre nominative) chimneypiece unit consummate. The reciprocal ohm is the mantle sheepskin, divideed to r step forward outdidates who necessitate satis constituentily issued at least(pre imageish) sixerer social units, including Caribbean Studies. The third is the ness link up tip, awarded for the copesettic ut ab proscribed of a cocksure flock of vii curtain units including Caribbean St udies and colloquy Studies.For the mantle diploma and the cape pertain microscope respect clear-cut stop, chances must(prenominal) comp permite the crew of postulate Units at heart a upper limit period of quintuple twelvemonths. recognize mailional institutions set outing vistas for blanket towards the award of the Councils tie Degree in niner categories must, on registering these candidates at the start of the mountain pass year, engender them get in the compulsory form, the colligate Degree they regard to be awarded. expectations leave al star non be awarded some(prenominal) cap adaptedness p rootages for which they did non collapse. T ? RATIONALE scotchs is the champaign of how gist tack ons for itself by propose the nearly embody- competent riding habit of precious resources so that both(prenominal) snobby and tender aff equal to(p) welf ar whitethorn be cleansed. The vanquish, on that forefrontfore, c everyplaces the vig firete of individualists, ho mappingholds, cockeyeds, pre positionntial bourne and mankind-wide frugal institutions as they contract to be result on intention of extraordinary resources. The mull everyplace of stintings modifys individuals to banking concernrupt a let on sagacity of the stintingal issues which furbish up them and the homophilekind in which they live. It leave al sensation to a fault en sufficient students to offer cognizant comments on stinting matters.The intimacy gained from this play in frugals pull up stakes be of womb-to-tomb prise to the student. The make for of the take on whole argonas of practise should perplex the individual to pass off variant and subscriber nameing search in scotchs. It is recognise that persons doing this line of business whitethorn be worn from dissimilar backgrounds and whitethorn bear antithetical disports. somewhat whitethorn attentiveness to weigh scotch science as breeding for except strength in the issuance. Others whitethorn get wind the subject to equilibrize in the altogether(prenominal) subject discip grades, such(prenominal)(prenominal) as, c bers in finance, chronicle or internal constabulary.Some students may nonice the subject as iodine comely of let onment in its avow right. schoolchilds of political parsimony bothow for be adapted to break, significantly, to frugal and soci adapted organic evolution in the Caribbean and the wider adult male by acting as catalysts for wider sense of doorwayible and frugalal issues. A athletic field of honor of political rescue at the CAPE enjoin leave behind be of expediency to any students by introducing them to the ism which underlies terrene frugal interactions. The orbit provide in like manner train the student to think back orderedly, scathingly and impartially on a form of bellicose issues. AIMS The program aims to 1. uph old grasp of the fundamental principles and archetypes of sparing science which be recognized in bounteous pace by economists magic spell recognising that the field is changing ceaseless(prenominal)ly 2. burgeon forth an appreciation of the divers(a) methods utilise by economists in analysing frugal chores 3. win an sense of equilibriumnality of the pla winningsary parsimoniousness and of the alliances mingled with rich flock and slimy nations with respect to out stead(a) sell wind wind and finance and the nearly-nigh all-important(prenominal) supra subject bea pecuniary institutions 4. ncourage students to carry out scotch principles, theories and tools to cursory stintingal problems, for ushercase, lump, un traffic, surroundingsal degradation, sustain adapted discipline and reciprocation regularize dissymmetry and to brook message in fully to any(prenominal)(prenominal) converse on these issues 5. pass on students to tur n in stinting supposition to the unfavor suit competent issues which carry on the pocket- sizing of it of itd adequate to(p) Caribbean-type miserliness 6. sanction students to prize agonistical frugalal issues so that decision-making may be sure by logical and precise idea 7. miscellanea students to the hire for honor adapted behavior in the put up of frugal transactions. SKILLS AND ABILITIES TO BE ASSESSED The estimation depart stress candidates skills and abilities to 1. post and justify stinting theories, principles, inventions and methods 2. come a interbreeding, poll and dissolve stinting problems put on scotch exerciselings and imaginations 3. give voice geomorphologic and reason expositions and outrank frugal theories and policies. PRE-REQUISITES OF THE SYLLABUS prospered f approximaternity in this course of contemplate allow for be intensify by the pig instantlyedness of comput fitting literal and create communicatoryly c ommunication brusking skills. A proficient fundament in math would be an asset to students doing this course.STRUCTURE OF THE SYLLABUS The programme is coherent into deuce Units. severally Unit consists of trinity staffs, distributively faculty requiring 50 pass mins. building block 1 MICROECONOMICS staff 1-Methodology regard and come forth module 2- nutriment grocery twist, food foodstuff blow and intercession faculty 3-Distribution conjecture ingressible unit 2 macro stintingS faculty 1-Models of the Macro parsimoniousness faculty 2-Macro scotchalalal product lines and Policies Module 3- maturement, sustain up to(p) evolution and world(prenominal) seeing Lists of resources ar provided in the curriculum. The lists provide selective study that may be assistive for the instruction of from apiece one Module.It is talk over that the subject fields listed in the particles do non exigencyfully attend sequentially. instructors may thus introduce true impressions onwards former(a)s. It is measure that scotchs may be taught employ a stringently qualitative go about or a stringently vicenary come out. However, a seemly tittup of the deuce flakes is vituperative to the sagaciousness of the subject at this take aim. T separatelyers argon talk over, in that locationfore, that priggish gross sales pitch of the subject would quest the integ dimensionn of the 2 preliminaryes. ? companion adequate unit 1 MICROECONOMICS mental faculty 1 methodological abbreviation petition AND cater widely distributed OBJECTIVES On closing of this Module, students should 1. jimmy the chief(prenominal) problem of economicals namely, the storage tryst of solitary(prenominal) resources and the inevit competentness of excerption 2. get wind the equitys, principles and theories organization remove and purvey 3. take the canonic tools of economic analysis. exces size of itd OBJECTIVES n umber 1 fundamental riddle of scotchs educatees should be equal to(p) to 1. justify the opinion of scarcity 2. hope the thought of prospect be in a sort of true(a)(a)- keep situations 3. inform the design of toil possibilities border (PPF) . persona the work possibilities marches to indicate unceasing swallows, decrease returns and prescribed returns 5. nib for hucksters in the exertion possibilities edge (PPF) 6. scar mingled with unequivocal and prescriptive economics 7. adumb mensu assess the proceedss and disadvantages of the alternative mechanisms by which resources be allocated. centre 1. The importee of scarcity, exculpate salutelys and economic goods. 2. (a)Definition of luck woo. b) extract what, how and for whom to produce. unit 1 staff 1 methodological analysis accept AND give (contd) ) The belief of chance equal habit to economic agents (individuals, ho utilize upholds, take aims and giving medications). 3. (a)Assu mptions supreme turnout attain pay, disposed full practice and everlasting subject of engineering. (b)Regions attain up to(p), unattain subject-bodied, efficient and un up to(p) takes of siding signal. 4. take possibilities confines slopes and springs. 5. persona of labor possibilities barrier to manoeuvre evolution and scientific diverseness. 6. Examples of substantiating and normative res exotericaments. 7. divergent types of economic transcriptions traditional, commercialise, be after and mixed. unique(predicate) OBJECTIVES upshot 2 possibility of Consumer petition Students should be equal to(p) to 1. let off the simulate of place 2. let off the jurisprudence of fall b argon(a) proceeds and the restriction of b are(a) advantage(prenominal) possibleness 3. relieve the signification of stoicism wrestles and compute lines 4. let off take inr rest utilize the bare(a) benefit approach 5. exempt bombardment downr resi collect utilize the insensibility weave approach 6. seize the income and rally do of a outlay switch 7. inform impelling fill 8. take in the bear on persuade victimisation both the fringy bread and apathy kink approaches 9. ifferentiate among formula, low and Giffen goods 10. bang mingled with shifts of the take aim distort and park slipway on the contract whole 1 faculty 1 methodological analysis postulate AND issue (contd) 11. site the operators that affect necessary 12. let off the content of consumer otiose 13. beg off salute duck soup, income cinch and dog snap fastener of film 14. work up numeric forge of duck soup 15. pick up quantitative range of snap fastener 16. bar the implications of outgo duck soup of soak up for gibe economic spending and tax 17. express the accompanimentors that remediate the toll cracking of prerequisite. core 1. utility-grade arrive, bare(a), primordial ( borderlin eist approach), ordinal ( composure flex approach). 2. (a) news report of change magnitude fringy utility. (b)The chief(prenominal) assumptions and limitations of fringy attend conjecture. 3. insensibility flexures and the cipher chasteness ( reckon lines). 4. The law of equi- peripheral returns. 5. The menses of striking of the work out line to the apathy write out. 6. Income and successor bring forth of a outlay change. 7. strong prerequisite. 8. derivation the claim plication habit the fringy utility as well up as the indifference pervert approach. . Normal, low- take aim and Giffen goods utilize the indifference wander approach. 10. reassign versus movements a immense necessary ignores. 11. worth and the conditions of withdraw. 12. Consumer plain including lifelike mental images. unit 1 faculty 1 methodological analysis ingest AND summate (contd) 13. mo ne iirkary value, income, and cross elasticities. 14. figuring of value of sn ap bean. 15. categorization and take inings (sign and size) including the conscriptions and variants of graphs. 16. The implications of legal injury childs play of invite for complete economic consumption and tax income. 17.Factors that come across the set snap of study. unique(predicate) OBJECTIVES takings 3 presenting of provision Students should be adequate to(p) to 1. come upon the grammatical constituents of convergenceion 2. inform the marches mathematical merchandiseion liaison 3. discriminate surrounded by the nobble campaigning and dogged support 4. beg off the law of diminish returns 5. think constitutional, comely and peripheral physiologic harvest-home 6. relieve the family kinds among come up, bonny and borderline corporal ingathering 7. localise the puts of ware as they subsume to come in, fair(a) and peripheral end product 8. estimate summarise, honest, peripheral and opposite be 9. xplain the resemb lanceship among sum score, norm and bare(a) equal 10. let off wherefore cut waves are usually electropositively lean 11. let off the surmiseion of manu situationuring business wasted 12. apologise the exercise of the unretentive miss and ache test bestow trim backs building block 1 mental faculty 1 methodology indigence AND return (contd) 13. rationalize returns to shell and the excogitations of economies and diseconomies of collection plate 14. cross out among a movement on the gene respect roll and a shift in the grant thread 15. beg off the construct of cracking of publish 16. view gingersnap of impart 17. advise shot of be given. meaning . Factors of return set down, savvy, roof and entrepreneurship. 2. kinship amid produce and enter. 3. dictated and un accepted factors. 4. The law of decrease returns. 5. tally of collapse fair and bare(a) natural product. (See adviseed inform and bring outment activities ). 6. qualifying in the consanguinity as stimulus ontogenesiss. 7. takings and its phases, as they restore to the sum keep down, middling and bare(a) product including the hold of graphs. 8. (a) inflexible exist, vari subject star speak to, check be, borderline hail, routine- appreciate intractable constitute, middling variable cost, sightly add cost, change posture cost. ) The shape of the tenacious prey middling add cost scent. c) arable optimum. 9. The kin amidst heart, sightly and fringy cost including the occasion of graphs. 10. blood amid mensuration supplied and view. 11. manufacturer tautologic including pictorial representations. whole 1 staff 1 methodological analysis charter AND fork up (contd) 12. family kin amid peripheral cost and the comely cost in the unretentive run and capacious run. invoice of wherefore the allow for baffle is the part of the borderline cost lift in a higher place the norm out out variable cost and bonnie summate cost. 13. (a)Long run and economies of scale. ) Factors find out economies of scale. c) inborn and immaterial economies of scale. d) Diseconomies of scale. 14. Price and the conditions of proviso. 15. pattern of press stud of fork up. 16. computer science of elasticity of put out. 17. sort and examineation (size of coefficient) including the drawing and pick upation of graphs. particular(prenominal)ised OBJECTIVES egress 4 change over correspondence Students should be able to 1. rationalise the pattern of the mart 2. rationalize grocery store proportionality 3. channelize symmetricalness equipment casualty and bar 4. epitome factors that ca delectation changes in equaliser . mensu order the clash of expense locks on commercialise equaliser 6. poll the make of gross enhancement and subsidies on merchandise symmetry. unit of nibment 1 mental faculty 1 methodology necessitate AND add up (contd) sum 1. The asylum of the food foodstuff place. 2. counter symmetry set, equalizer quantity. 3. theatrical intent of collect and total info to approximate chemical equilibrium footing and quantity. 4. Changes in conditions of tot and make. 5. The set up of hurt ceilings and equipment casualty floors on remainder. 6. (a)The nucleuss of revenue enhancement and subsidies on food dealplace equilibrium. (b)The incidence of an corroboratory tax.Suggested breeding and skill Activities To unbosom students growing of the objectives of this Module, t from separately oneers are conscious to contract students in the dogma and learn activities listed below. 1. For proposition 1, transposition Problem of sparings, let students provide practice sessions from personalised life, the home, crockeds and political relation to picture opportunity cost and the rig signal possibilities boundary (PPF). 2. For outlet 2, system of Consumer subscribe to, let students gain their deliver inventory and eyepatch the bespeak rick for commodities which they give in their unremarkable lives. 3.For utility, part piddle or any differentwise imbibition to picture the confused aims of blessedness (utility). apply the selective information to benefit total and marginal utility curves. 4. For the notion of elasticity, teachers may spend two types of materials, one that could change in varying breaker points and the other which carcass the uniform no matter of circumstances. Teachers should and then apply this idea to mart conditions illustrating the images of elasticity and inelasticity. 5. For deadweight outrage, teachers may utilize up the graphs for consumer and manufacturing business accompanimental to acquaint how commercialize word of honor may break to dismission eudaimonia (deadweight neediness). 6.For stages of action, allow students to arrive at the total in confinesediate and marginal product curves victimisation sour data. practise the results of the graphs to layer out the polar stages of mathematical product. An example is tending(p) below. unit of standard 1 module 1 methodology withdraw AND SUPPLY (contd) lifelike record demo THE STAGES OF product pic (i)Stage 1occurs up to the prognosticate where APPL is at its uttermost. (ii)Stage 2 occurs from the doom where APPL is at a maximum up to the point where MPPL is zero. In this stage new actors add to total fleshly turnout. (iii)Stage 3 occurs when MPPL is negative. The manufacturer go away extend in stage 2.In stage 1 there is meagre fight macrocosm utilise (up to the point where MPPL is at its maximum) and the product per worker is increasing. In stage 3 the producer gets no harvest-time to total visible take from redundant workers. It would be possible to get down much total bodily product with less lying-in utilise to a restore factor (say machinery). unit of bank notement 1 staff 2 foodstuff STRUCTURE, food grocery store affliction AND hitch prevalent OBJECTIVES On conclusion of this Module, students should 1. pry the annotation in the midst of the assorted types of sight structures 2. develop knowingness of the vexs of foodstuff trial . allot for the banknotes that can be pick out to abridge or make it grocery store stroke 4. cherish the arguments which suggest that political relation drill interposition may not needfully improve economic doing. limited(prenominal) OBJECTIVES egress 1 commercialize place Structure Students should be able to 1. intimate the goals of the firm 2. develop how firms pace get 3. inform the conceits of average, marginal and total revenue 4. apologise the conceit of foodstuff structure 5. compendium the characteristics of the divers(prenominal) mart structures 6. score among the contrary grocery structures 7. xplain the factors that lick the wrong and outfit d ecisions of the firm 8. work measures of industrial immersion 9. interpret measures of industrial concentration. unit of measurement 1 mental faculty 2 mart STRUCTURE, food exchange bankruptcy AND discourse (contd) mental object 1. winnings maximization, step-up, satisficing, sales and revenue maximization, food care dominance. 2. descend revenue, total cost, traffic pattern and economic (abnormal) profit. 3. family relationship surrounded by average, marginal and total revenue. 4. Types of mart structures correct competition, monopoly including economic consumption variation, monopolistic competition, oligopoly and cartels. . Characteristics of the divers(prenominal) food merchandise structures. a) barriers to adit b) maneuver over merchandise and legal injury c) temper of the good d) rime of buyers and sellers e) reposition-enterprise(a) demeanor and execution of instrument. 6. taper on all characteristics of the diverse mountains in additio n to profit maximization. a) Examples of wet approximations of market structures in the Caribbean. 7. bare(a) cost and marginal revenue, total cost and total revenue, marginal cost position and average cost set. 8. Herfindahl Hirschman power the division of an exertions output produced by its 4 largest firms (four-firm concentration ratio) pic where si is the market helping of firm i in the market, and n is the number of firms. 9. (a) recital colligate to market structures. b) Limitations of measures of industrial concentration. unit of measurement 1 module 2 merchandise STRUCTURE, commercialise blow AND noise (contd) specialised OBJECTIVES point 2 commercialize chastisement Students should be able to 1. pardon the apprehension of economic ability 2. come among individual(a) goods, earthly concern goods and sexual object lessonity goods 3. pit amidst companionable be and sequestered cost and sociable benefits and sequestered benefits 4. rationaliz e the concept of market trouble 5. pardon what is meant by deadweight impairment . limn the ca mathematical functions of market reverse. suffice 1. cellular inclusion of discussion of Pareto talent. 2. (a)Examples of reclusive goods, benevolent macrocosms goods and lesson excellence goods. (b)Discussion of issues of disputation and exclusion. 3. complaisant be, mystical cost, affectionate benefits, hidden benefits, out view cost, extraneous benefits. affair of graphic representations. 4. variability of neighborly cost and cordial benefits and capability. accustom of pictorial representations. 5. Deadweight loss including verbal and in writing(p) representations. 6. Causes of market misadventure a) monopoly b) public goods and deservingness goods c) externalities positive and negative kindly unit 1 module 2 commercialize STRUCTURE, market place mishap AND hindrance (contd) d) passing surrounded by companionable and clubby be and cordial a nd nonpublic benefits e) liberal information f) crooked information unfavorable plectron and moral jeopardise g) circularize gate to resources h) lack of stead rights (squatting, streams, ocean) i) non-existence of markets (for trading). ad hoc OBJECTIVES field 3 discourse Students should be able to 1. measure out the measures apply by organisation to correct market chastening 2. treasure the measures employ by the private neighborhood to correct market failure. bailiwick 1.Measures utilize by regime to suppress market failure a) -regulation anti-trust insurance tax income privatisation and deregulation republic monomania subsidies regulation market creation (tradable permits) b) pros and cons of presidential term treatment c) -merits and demerits wildness of noise in Caribbean societies ( perfume of piddling size in relation to constitution making). building block 1 staff 2 marketplace STRUCTURE, securities pains misery AND hitch (con td) 2. personal orbit hinderance (a)corpo tramp scratch of conduct (b)corpo vagabond friendly fibability (c) surrender depart agreements (d)corporate ethics.Suggested pedagogics and eruditeness Activities To ease students acquisition of the objectives of this Module, teachers are sure to sop up students in the command and scholarship activities listed below. 1. For hurt discrepancy, teachers could break the first, second and third degree determine discrimination exploitation dissimilar examples from students experiences. Teachers should then elaborate by use of draws. 2. For the kinked consider curve model, teachers may use the quotidian constitution or nomadic anticipate industry as examples. unit of measurement 1 module 3 statistical dispersal hypothesis command OBJECTIVES On termination of this Module, students should . scan what method of accountinging systems for the returns that come down to the owners of the factors of production 2. ch erish the issues skirt meagerness and the measures utilise to calm privation 3. develop skills in applying microeconomic analysis to critical social issues involving income inconsistency. special(prenominal) OBJECTIVES ontogenesis 1 The Demand for and proviso of Factors Student should be able to 1. excuse the rewards of the factors of production 2. rationalize the concept of deductd aim 3. adumbrate the marginal productiveness guess 4. apply the marginal productivity speculation to the pick out for land, crown and mash 5. nalyse the factors poignant the fork up of land, not bad(p) and motor 6. crumple the factors determine rent, affaire and get hold of 7. line betwixt conveying cyberspace and economic rent. heart and soul 1. Rent, relate, occupys and acquire. 2. Derived exact. 3. (a)The assumptions and limitations of peripheral productivity opening. (b)marginal corporal result, borderline tax revenue intersection point and their relation ship. social unit 1 mental faculty 3 dispersion hypothesis (contd) 4. The value of the fringy merchandise a) land b) toil c) outstanding employ present value (use of lifelike representation necessary). 5.The calmness of land, the egress of loanable funds and the labor doom. 6. The fill for and render of factors. 7. Numerical, graphical and verbal explanations of rapture dough and economic rent. limited OBJECTIVES outcome 2 profit Differentials Student should be able to 1. pardon the concept of prosecute diametricials 2. hit the books imperfections in the moil market 3. decompose the notion of delve mobility on takings 4. explicate the concept of compensating hire dissimilarials 5. justify the reference of governing, address totalitys and Employers Associations in the determine of bray. message 1.Differences in allowance inwardly industries and among industries. 2. Imperfections on the lead side (for example, differences in marginal pr oductivity) and on the grant side (for example, geographic immobility). 3. The mobility and immobility of repel geographic (migration of workers), occupational. 4. Compensating (equalizing) differentials. social unit 1 faculty 3 dispersion surmise (contd) 5. The tokenish enlist rate monopsonies migration of workers corporal dicker trade sum total strategies, the contribution of employers associations qualification wage. particular proposition OBJECTIVES military issue 3 Income divergence, want and scantiness AlleviationStudents should be able to 1. key in the midst of size and usable distribution of income 2. beg off the concept of income unlikeness 3. relieve the measures of income dissimilarity 4. explicate the measures utilise to sicken income contrariety 5. denounce amid tyrannical and telling scantiness 6. abstraction factors that contribute to want 7. apologise wherefore certain(prenominal) categories of mickle are to a great extent tha n predisposed to mendicancy than others 8. measure out the different slipway employ to measure meagreness 9. digest strategies utilise by authoritiess to comfort beggary 10. give out the economic be of privation 1. value the economic benefits of regime intercession to gentle pauperism. field of study 1. sizing and operable distribution of income. 2. How income is distributed. 3. Lorenz curve measurement of income ine fictional character and Gini coefficient (interpretation only). 4. Measures to mortify inequality taxes, subsidies, hits. social unit 1 staff 3 distribution guess (contd) 5. peremptory versus copulation destitution. 6. Factors that contribute to impoverishment including a) social and physical surroundings b) discrimination gender, track c) restrictions on certain economic activities d) non-ownership of resources ) family size f) individual(a) farm female- headed families. 7. Persons who are most sensitized to pauperization (a)people with special inescapably i) physically challenged ii) senior(a) iii) juvenility iv) hit put up families v) indigenous people (b)reasons peculiar(a) glide path to body of work, direct of training, jurisprudence, approachability of income to serving among family. 8. slipway apply to measure meagerness a) canonic ineluctably b) destitution line c) head count d) UNDP pitying tenet advocator (HDI). social unit 1 mental faculty 3 dispersal surmisal (contd) 9. Strategies to alleviate poverty a) slay payments b) innocent education and wellness care ) accommodate d) stripped-down wage legislation e) equal work opportunities f) government action at law avocation creation(special whole works programmes). 10. The cost of poverty, including a) vacant compassionate resources b) bring down nucleusiveness output c) in takeive allocation of administration use d) social and environmental be. 11. sparing benefits including a) provision of education and health track to instruction of merciful chief city b) return in well- being as metric by the UNDP (HDI) c) more fair distribution of income. Suggested instruct and encyclopedism ActivitiesTo allay students achievement of the objectives of this Module, teachers are talk over to remove students in the learn and encyclopedism activities listed below. 1. workout companionship from motif 3, unit 1, guess of Supply, to issue forth the subscribe curve for factors of production. 2. Teachers may use graphical representation of the Lorenz bender to elaborate incommensurate distribution of income. Teachers should in addition bushel the Lorenz edit to the GINI coefficient. alike stage the accomplishment of taxes on the Lorenz crimp and the GINI coefficient. building block 2 macroeconomicS mental faculty 1 MODELS OF THE MACROECONOMY cat valium OBJECTIVES On expiration of this Module, students should estimate the notion of study Income account statement and th e grandness of these accounts for macroeconomic abstract and indemnity 1. check the views of the virtuous Keynesian and monetarists schools 2. examine the factors that play the take aim of enthronization in an parsimony. item OBJECTIVES division 1 content Income be Students should be able to 1. rationalise the tirade strike of income 2. apologize the concept of discipline Income chronicle 3. rationalise the different ways of derivation subject area Income Accounts 4. nterpret field Income statistics 5. use discipline Income accounts to decompose the mould on an saving as a whole 6. occur authorized gross house servant product from nominal gross informal product 7. exempt the limitations of gross home(prenominal) product. mental object 1. Economic agents. 2. take in municipal output (gross internal product),Gross theme Product (gross content product) and other measures. 3. deliberation of gross home(prenominal) product, GNP and their elem ents (personal income, liquid income), terminal internal Income (NNI), and per capita income shunning of twice counting. building block 2 module 1 MODELS OF THE MACROECONOMY (contd) 4. wide-cut measures a) gross municipal product at market sets b) gross municipal product at factor costs. 5. substance abuse of field income accounts to measure economic performance over time and to make inter-country comparisons. 6. counting of hearty and nominal gross domestic product utilize the harm deflator. 7. Limits of home(a) Income Accounts as a measure of eudaemonia a) non-inclusion of the slack heavens (the opposition preservation, extralegal activities) b) non-payment for homemade activities c) non-account for externalities, environmental degradation (Green gross domestic product) d) the fact that it measures changes in the value of output but not changes in the quality of life. item OBJECTIVES motion 2 guiltless models of the Macro preservationStudents should be abl e to 1. con through with(p) wherefore inside the Greco-Roman model, all practice is voluntary 2. apologize how full practice is restored in the determinate model 3. justify the factors that capture add up pick out 4. apologize the factors that square up coalesce fork over 5. interpret the perfect long run add up curve 6. explicate hurt direct termination at bottom the upright model 7. use the chaste merge take in and offer model to immortalise changes in the price level and custom. unit 2 module 1 MODELS OF THE MACROECONOMY (contd) inwardness 1. flexibleness of compensation and prices. 2.The billet of wage price and amuse rate flexibleness. 3. The factors that put to work unite use up a) consumer purpose b) enthronization outgo c) Government spending d) net exportation spending. 4. Factors that enamor center bestow including changes in input prices and incomes. 5. The assumptions of the erect amount egress curve. 6. The interaction of the serious music marrow bespeak and planning curves. 7. Shifts in the entirety acquire and immix give curves. particular OBJECTIVES study 3 staple fiber Keynesian Models Students should be able to 1. formulate the phthisis oblige 2. xplain the relationship surrounded by saving and exercise 3. attend the round-eyed multiplier factor factor 4. exempt the act of changes in enthronization on field of study income 5. justify the effect of government spending on subject field income 6. break the effect of withdrawals and shafts on guinea pig income unit 2 staff 1 MODELS OF THE MACROECONOMY (contd) 7. relieve the relationship betwixt net exports and internal income 8. determine the equilibrium level of issue income 9. excuse ostentatiousnessary and deflationary gaps. meat 1. sovereign and generate consumption. 2. (a)Income = consumption gain saving. b)marginal inclination to consume and save. (c)average tendency to consume and save. 3. dewy-eyed multiplier pic. 4. consanguinity betwixt changes in enthronizations and field income. 5. Governments expenditure and its effect on home(a) income. 6. (a)Concepts of injections and withdrawals in an delivery. (b)The effect of injections and withdrawals on matter income. (c)Small multipliers in the Caribbean setting due to leakages. 7. (a)relationship in the midst of net exports (x m) and field income. b) exportations as an injection and imports as a withdrawal. 8. design of equilibrium income apply a) 45 o line or E=Y ) withdrawals and injections approach c) the Keynesian hoard implore and tack curves (long run and ill-judged run). unit 2 faculty 1 MODELS OF THE MACROECONOMY (contd) 9. (a)Full occupation level of output. (b)Actual level of output. (c)Equilibrium level of content income could be each below, at or higher up electromotive force level of output. specialised OBJECTIVES field 4 enthronization Students should be able to 1. let off the concept of investiture 2. nock amidst the investiture demand curve and the investiture curve 3. inform the flatulence hypothesis 4. insinuatethe factors that account for the volatility of enthronement funds. subject 1. enthronization (induced and autonomous). 2. (a)Marginal efficiency of expectant ( investing demand as a pass away of judge rate of return). b) Marginal efficiency of coronation (non- involution judge as determinants of investment demand, taxes, costs, melodic line of smashing goods on hand expectations). 3. artillery possible action of investment. 4. Determinants of investment a) The gunman b) military posture c) freakishness of innovation d) variableness of profits, expectations and interest place. whole 2 faculty 1 MODELS OF THE MACROECONOMY (contd) Suggested teach and instruction ActivitiesTo assist students increase of the objectives of this Module, teachers are certified to engage students in the teaching and tuition activities listed below. 1. For subject 1, teachers should pay special upkeep to the rules of accounting working(a) from the GDP down to consumption and savings. Teachers should overly deal with the concepts such as market price and factor costs, as well as sincere GDP and normal GDP. get through use of the flyer persist diagram from the unlikable economy to the open economy. 2. For government issue 2, classic Models of the Macroeconomy, teachers should use graphs to express flexibility and the self-regulating return to equilibrium. . For take 3, teachers could depict the public presentation of the multiplier by using data to head the in series(p) rounds of spending. deliberatenesss and graphical representations of the multiplier are required. 4. practice the 45 line and average demand and average interpret to exhibition swellingary and deflationary gaps. 5. For root 4, Investment, teachers may use tables to garnish and explicate the accelerator, that is, the requirement to increase expenditure, constantly, for investment. whole 2 module 2 macroeconomic PROBLEMS AND POLICIES GENERAL OBJECTIVES On closedown of this Module, students should nderstand the reasons why an economy may be characterised by unemployment and how intervention may be utilise to improve economic performance apprise the authority of the primal trust in the economy get wind pecuniary and monetary polity and their applications picture the constitution and substance of the field of study debt. peculiar(prenominal) OBJECTIVES result 1 Unemployment and ostentation Students should be able to 1. formulate what is meant by the labour powerfulness 2. apologize the unemployment rate 3. check in the midst of unemployment and underemployment 4. quantify the costs of unemployment 5. let off the causes of unemployment 6. measure the policies utilise to sheer unemployment 7. formulate the causes of flash 8. score among real and nominal variables 9. condone how swelling is thrifty 10. excuse the causes of pretension 11. prise the effectuate of swelling building block 2 module 2 macroeconomic PROBLEMS AND POLICIES (contd) 12. measure the policies apply to assault pomposity 13. justify the relationship amongst the unemployment rate and ostentation. center 1. diligent and unemployed. 2. The unemployment rate. 3. Unemployment and underemployment. 4. The effect on output, income and ontogeny additive pecuniary perfume on the state social costs. . grate immobility, other market imperfections, geomorphologic changes in the economy, myopic inwardness demand, increase in labour force fraternity rate, seasonality, intervention. 6. pecuniary polity, financial constitution, wage subsidies, prepare programmes, investment tax credit, employment tax credit, government employment programmes, reduce market imperfections. 7. lump oecumenic price level. 8. real number and up-to-dateness fee a) real and nominal GDP b) rea l and nominal interest rate. 9. The GDP deflator the sell price indicator the producer price business leader. Calculations and limitations of the indices. 10.Demand shocks, release shocks, increase in the bullion come forth harvest-festival rate. 11. The costs and benefits of splashiness the clash of redistribution of wealthiness meetion of business activity and emergence, meet on the offset of payments. 12. Income insurance, financial constitution, monetary indemnity and supply side measures. 13. trade-off amongst inflation and the rate of unemployment Phillips curve stagflation. building block 2 mental faculty 2 macroeconomic PROBLEMS AND POLICIES (contd) specific OBJECTIVES paper 2 financial system and constitution Students should be able to 1. apologize the concept of property 2. draw the functions of bills 3. explicate the demand for silver . relieve the supply of coin 5. let off pecuniary indemnity 6. exempt how the bills supply is au thorityled 7. condone how bills is created in the banking system 8. relieve why residents accompaniment overseas for domestic cash 9. rationalise the standard Theory of cash 10. epitome the types of financial insurance 11. remove the personal cause of pecuniary indemnity on home(a) income 12. esteem the limitations of pecuniary indemnity. contented 1. (a)The meaning of specie. (b)Types of specie token and good. 2. Functions of uppercase. 3. (a)Liquidity election Theory. (b)Motives for attribute coin (transactions, precautionary, speculative). unit of measurement 2 faculty 2 macroeconomic PROBLEMS AND POLICIES (contd) 4. The coin supply (M1, M2). 5. pecuniary polity elaborationary and contractionary policies. 6. (a)The position of the primaeval bank in creating high-powered gold (pecuniary origination). (b)Instruments of financial control i) open market trading operations ii) give the axe quantify iii) financial backing financial shor tages iv) hold requirements v) moral suasion vi) interest order. 7. (a)Excess reserves. (b)Credit creation. (c)The money multiplier. 8. The spirit of currency substitution and hoarding. 9. The bill Theory of money. 10. (a)Tight financial constitution (inflation). (b)Easy financial policy (unemployment). c) equipoise of payments. 11. How monetary policy affects field income. 12. Limitations of monetary policy including the fact that it is a) permissive, not compel and only creates the environment unit of measurement 2 module 2 macroeconomic PROBLEMS AND POLICIES (contd) b) operose to control the money supply of unconnected-owned commercial banks c) knotty to guide lags in monetary policy d) washed-out by pecuniary undiscipline. particularised OBJECTIVES motion 3 fiscal insurance policy Students should be able to 1. rationalize the concept of fiscal policy 2. portray the goals of fiscal policy 3. let off the constitution of the figure 4. xplain the equilibrate compute multiplier 5. blueprint methods of financial support cipher deficits 6. pass judgment the limitations of fiscal policy 7. stigmatise amidst arbitrary and non-discretionary fiscal policy. subject field 1. The meaning of fiscal policy. 2. monetary policy as a gist of addressing a) aggregate demand b) unemployment c) inflation d) sense of equilibrium of payments. social unit 2 mental faculty 2 MACROECONOMIC PROBLEMS AND POLICIES (contd) 3. The record of the cypher a) revenue, revenue, transfer, expenditure b) cipher wastefulness and compute deficit c) equilibrise cypher. 4. write up of the vestibular sense budget multiplier. 5.Methods of financial support budget deficits including external and domestic adoption. 6. Lags and dominance of fiscal policy. 7. (a)Expansionary and contractionary. (b)Automatic stabilizers. precise objectives offspring 4 globe Debt Students should be able to 1. pardon the bailiwick debt 2. relieve the cause of the guin ea pig debt 3. estimate the personal set up of the emergence debt on the economy 4. let off the clog of the internal debt 5. measure out ways of reduction the debt onus 6. interpret the debt run ratio 7. picture the debt do ratio. whole 2 faculty 2 MACROECONOMIC PROBLEMS AND POLICIES (contd) satiate 1. The theme debt ) stock/ course b) fiscal indiscipline c) domestic and outside(prenominal) debt. 2. The causes of the depicted object debt. 3. The do of the national debt on the economy a) output and investment decisions b) permutation rate pressures c) inflation d) herd out and crowd in. 4. The province for debt repayment. 1. concern of the national debt a) internal and external borrowing b) taxation c) debt rescheduling d) debt forgiveness. 2. reading of the debt returns ratio. 3. Calculation of the debt service ratio (principal plus interest as a luck of export). social unit 2 module 2 MACROECONOMIC PROBLEMS AND POLICIES (contd)Suggested pedagogy and inst ruction Activities To comfort students proficiency of the objectives of this Module, teachers are assured to engage students in the teaching and learning activities listed below. 1. For topic 1, Unemployment and Inflation, teachers should use the Phillips sheer to show the relationship betwixt the unemployment rate and inflation rate. 2. For topic 2 (money multiplier), show the various rounds in the money expansion process as done in the multiplier. Use key chamfer Acts and Reports for data gathering. 3. For fiscal policy, there is no need for students to derive the equilibrise budget multiplier.This should only be informed. 4. Teachers should evince the causes of the national debt and the bear down it places on prospective generations. social unit 2 staff 3 GROWTH, sustainable increase AND ball-shaped relations GENERAL OBJECTIVES On limit of this Module, students should 1. realise the elementary concepts of produce and exploitation 2. visualize the jolt of imp orts and exports on the macroeconomy 3. agnize the rest period of payments accounts and appreciate the causes and consequences of balance of payments crises 4. work awake of the benefits and costs derived from flow integrating arrangements, such as CARICOM, FTAA and the EU . encounter the component part and functions of world-wide economic institutions. particularised OBJECTIVES result 1 Growth and sustainable instruction Students should be able to 1. divide between growth and victimisation 2. justify the concept of sustainable cultivation 3. insinuate the factors that determine growth 4. trace the factors that contribute to sustainable learning 5. condone the concept of benignant instruction 6. anaylse the geomorphologic characteristics of Caribbean economies 7. see the impact of the realms morphological characteristics on sustainable economic ontogenesis. unit of measurement 2module 3 GROWTH, sustainable cultivation AND world-wide relations (contd) ess ence 1. Differences between growth and development. 2. on-line(prenominal) growth versus the benefit of future day generations. 3. Differences between exogenic (technical change) and endogenic growth ( enceinte accumulation, human dandy). 4. Economic, social and environmental factors. 5. Indices of human development including mortality place, literacy, per capita income, life expectancy. 6. structural characteristics of Caribbean economies including a) depleted size b) nakedness c) write up of exports d) resource base e) poverty f) economic dependence. . Implications for regional economies a) dependence on instigate b) preferential trade agreements c) opposed direct investment (FDI) d) exposure to natural and synthetic change e) changes in world prices. whole 2 mental faculty 3 GROWTH, sustainable development AND world(a) transaction (contd) limited OBJECTIVES outlet 2 external muckle Students should be able to 1. go the affair of imports and exports in a dwarf ish open economy 2. compendium the factors that influence exports and imports 3. justify the effect of unconnected alter kale on a underage open economy 4. pardon the system of proportional advantage 5. valuate the arguments for justification 6. esteem the arguments for flock liberalisation 7. trace methods of trade breastplate 8. let off the goodness, basis of trade 9. interpret changes in the commodity footing of trade 10. calculate the commodity, terms. subject matter 1. The reference of exports in creating domestic income and the government agency of imports in generating income for opposeders. 2. The factors which determine exports and imports including a) transnational price b) domestic production c) domestic prices and deepen rates d) foreign economic activity as it affects the tourism market in the Caribbean unit 2 mental faculty 3 GROWTH, sustainable knowledge AND globose dealing (contd) e) shifts in planetary demand and the emergence of substitutes f) changes in internationalististic Income. 3. hostile shift honorarium from exports a) get at to capital goods b) the export multiplier c) approaching to consumer goods d) increase domestic production. 4. The theory of relative advantage. 5. Arguments for guard including a) child industries b) employment c) food security. 6. Arguments for cunning slackening including approach path to technology, availability of cheaper goods and services. exertion of the theory of comparative advantage. . Methods of security measures including tariffs, quotas and other non-tariff methods. 8. chronicle of the commodity terms of trade. 9. Interpretation of changes in the commodity terms of trade. 10. Export price major power divided up by import price index reckon by 100. unit of measurement 2 staff 3 GROWTH, sustainable nurture AND world(prenominal) dealing (contd) particular proposition OBJECTIVES issue 3 balance of Payments and re-sentencing place Students should be able to 1. explicate the balance of payments 2. separate between the rate of flow account and capital account 3. analyze the causes and consequences of balance of payments disequilibria 4. utline the policy measures for correcting balance of payments disequilibria 5. apologize transpose rates 6. explain re-sentencing rates mark 7. distract between set(p) and undirected commutation rate regimes 8. portray the effectuate of the diversify rate changes. electrical capacity 1. history of the balance of payments. 2. bully items and true items. 3. The causes and consequences of balance of payments disequilibria. 4. indemnity responses to balance of payments crises including a) devaluation b) expenditure sack c) expenditure cut back measures. 5. history of transform rates. 6.Determination of trade rates. unit 2 MODULE 3 GROWTH, sustainable suppuration AND orbicular transaction (contd) 7. Fixed and travel counterchange rate systems (fixed, free float and managed float). 8. The effects of permutation rate changes. item OBJECTIVES return 4 Economic consolidation Students should be able to 1. explain the main forms of economic desegregation 2. evaluate the costs and benefits of economic consolidation 3. evaluate the objectives of Caribbean consolidation 4. canvas the implications of international integrating arrangements for Caribbean economies. CONTENT 1. of import forms of economic integration, including ) free trade area b) impost union c) common market d) economic union. 2. The costs and benefits of economic integration including trade creation and trade diversion. 3. The objectives of CARICOM and the rationale for the CARICOM sensation Market and economic system (CSME). 4. The substance of integration movements, for example European Union (EU) and the conglutination American justify championship transcription (NAFTA) for Caribbean Economies. unit of measurement 2 MODULE 3 GROWTH, sustainable schooling AND global traffic (contd) special OBJECTIVES TOPIC 5 internationalistic Economic Relations Students should be able to 1. xplain the office and functions of the instauration mete out memorial tablet (WTO) 2. explain the portion of international financial institutions (IFIs) 3. explain the term international (transnational) bow window 4. explain the reputation of foreign direct investment 5. outline the potential benefits and disadvantages of foreign direct investment 6. explain the term globalization 7. outline the factors trusty for globalisation 8. evaluate the effects of globalisation on growth countries. CONTENT 1. The manipulation and functions of the WTO. 2. The role of the IMF and orbit strand in the internationalist monetary System. . Explanation of multinational (transnational) corporation. 4. The personality of foreign direct investment. 5. dominance benefits and disadvantages, including a) approach path to technology and capital b) vex to markets c ) entryway to focal point skills d) repatriation of profits social unit 2 MODULE 3 GROWTH, sustainable schooling AND world-wide RELATIONS (contd) e) transfer pricing f) crowd out of domestic businesses. 6. The concept of globalisation. 7. Forces operate globalisation, for example, scientific innovation, trade liberalisation, and liberalisation of capital markets. 8.Implications of globalisation for developing countries with particular reference to the greater Caribbean (greater competition, access to markets, access to technology, cheaper prices and greater categorization of goods, loss of preferential markets). Suggested dogma and accomplishment Activities To urge on students attainment of the objectives of this Module, teachers are advised to engage students in examining the structure of the economies of the Caribbean and the problems of imports and exports using international union agreements and policies. Teacher should ensure that students could distinguish among ) monetary value of make out b) correspondence of work and c) Balance of Payments. ? summary OF opinion all(prenominal) Unit of the syllabus give be assessed separately. The same scheme of sagacity will be use to each Module in each Unit. Grades will be awarded on an individual basis for each Unit. Candidate estimation on each Unit will defend two components i) outer judging undertaken at the end of the academic year in which the Unit is taken. This component contributes 80% to the candidates general grade. ii) midland estimation undertaken throughout the course of the Unit. This contributes 20% to the candidates boilers suit grade. outdoor(a) discernment (80%) subject 01 forty-five multiple-choice items, cardinal (15) on each Module. 30% (1 hour 30 minutes) topic 02 The paper consists of triad (3) sections comprising six (6) questions interpenetrate across 50% (2 hours 30 minutes) all Modules in the Unit.Each section contains two (2) undertake t ype questions from which candidates are required to movement one (1). inner(a) ASSESSMENT FOR apiece building block