THE THEORY OF PRODUCTION NOTES Definition Production comprises all activities that provide goods and serviceswhich people want and for which they are prepared to pay a price. Thecomposition of the total output can be classified into consumer goodsand produce goods and services. Consumer goods are commodities thatsatisfy human needs directly .They can be: Producer goods … Read more

MARKET STRUCTURES NOTES 5.1 Perfect Markets Perfect market is a market with many buyers and sellers where nobody candetermine the price of goods or services. Characteristics N/B: Under perfect competition firmsare price takers. Meaning the demand curve of an individual firm will be perfectly elastic showing that the firm can sell any quantity of output … Read more

INTRODUCTION TO ECONOMICS NOTES Economics essentially studies the way in which mankind provides for thematerial well being. It’s thus concerned with the way people apply theirknowledge, skills and effort to the gift of nature in order to satisfyhuman their material wants. Economicsis a social science which studies the allocation of scarce resourceswhich have alternative uses … Read more

DEMAND AND SUPPLY NOTES Purpose The theory of demand and supply enables us to understand thedetermination of prices and quantities in different marketsFor example, why the prices ofagricultural commodities such as tomatoes, apples, mangoes and cabbagesincrease and decrease at certain times of the year, why have the pricesof computers, music systems and television sets been … Read more

AGGREGATE DEMAND NOTES The Goods market also common known as the commodityor the product market is one where output (Y) is produced and laterconsumed by the economic agents. It is from the goods market that wehave the national income identity, which we defined using the equation Y = C + I + G To develop … Read more

Business Cycles, Unemployment, and Inflation Notes 9.1 Phases of the Business Cycle Four phases of the business cycle are identified as follows 9.2What is Unemployment: Unemployment generally refers to a state/situation where factors ofproduction (resources) are readily available and capable of beingutilized at the ruling market returns/rewards but they are eitherunderemployed or completely unengaged. When … Read more

The Foreign Sector and Balance of Payments Notes 5.1 Mundell- Fleming Model This is an open – economy version of the IS- Lm model. Both the Mundell-Fleming Model And IS-LM model assume that the price level is fixed andthen show what cause short – run fluctuation in aggregate income. Thekey difference is that the IS- … Read more

NATIONAL INCOME DETERMINATION NOTES We can use simple algebra to determine national income. National incomeis at equilibrium when Ag. Demand equals Ag. Supply. In a simple closedmodel of income determination without gov. expendituretaxation, then Y=C+I Suppose the consumption function is of the form:C=a+bY suppose investment demand equals I0 (Autonomous) We get the following 3 equations … Read more

WHAT IS NATIONAL INCOME ACCOUNTING? National Income Accounting refers to the measurement of aggregateeconomic activities, particularly national income and its components.GDP is often considered the best measure of how well the economy isperforming. The goal of GDP is to summarize in a single number themonetary value of economic activity in a given period of time. … Read more

INVESTMENT NOTES 8.1 Categories of investment Before developing any theories investment choices by people it isimportant to define what is meant by investment.Investment: is the formation of real capital, tangible or intangible,that will produce a stream of good and service in the future. Investmentundertaken in an economy is classified according to the followingcategories: Investment Affects … Read more

INTRODUCTION NOTES Economics is a social science that studies individuals’ economicbehavior, economic phenomena, as well as how individual agents, such asconsumers, firms, and government agencies, make trade-off choices thatallocate limited resources among competing uses. People’s desires areunlimited, but resources are limited, therefore individuals must maketradeoffs. We need economics to study this fundamental conflict and howthese … Read more

CONSUMPTION NOTES We discuss the consumption choices of individuals .the theory ofintertemporal choice was developed by irving fisher (1867-1947)theintertemporal choice theory is about individual not aggregateconsumption but it does not have important implication for aggregateconsumption because aggregate consumption is the sum of consumption by individuals fisher observed that people do not just have a budget … Read more

Aggregate Supply (AS) NOTES Definition of Aggregate supply (AS) The aggregate supply curve describes; for each given price level, thequantity of output firms are willing to supply. in the shot run the AScurve is horizontal (the Keynesian aggregate supply curve); in the runthe AS is vertical (the classical supply curve). 6.2 The Classical Supply Curve … Read more

ORGANIZATIONS AND ITS COMPONENT PARTS NOTES ORGANIZATION CULTURE IntroductionCulture is shared meaning, understanding and sense making .Culture sumsup the dominant values visions, perspectives ,standards and models ofbehaviour that are in organizations. The shared beliefs, values andexpectations held by individual also constitute organization culture. Definitions: Functions of cultures Characteristics of Organization Culture Creating an Ethical Organization … Read more

ORGANIZATION POWER AND POLITICS NOTES INTRODUCTION What is POWER ? Power means the capacity of individuals to overcome resistance on thepart of others, to exert their will and to produce results, consistentwith their interests and objectives (Dahl 1957). Definitions“Powers is the capacity to change the behaviour or attitudes of anotheris a desired manner” “ Power … Read more

MOTIVATION AND THEORIES OF MOTIVATION NOTES INTRODUCTION The definition of motivation is to give reason, incentive, enthusiasm,or interest that causes a specific action or certain behavior.Motivation is present in every life function. Simple acts such as eatingare motivated by hunger. Education is motivated by desire for knowledge.Motivators can be anything from reward to coercion. Motivation … Read more

LEADERSHIP NOTES INTRODUCTION DefinitionsSeveral definition of leadership has been given by different managementwriters. Van fleet describes, “ Leadership as an influence processdirected at shaping the behaviour of other ( Leadership is shaping thebehaviour of others through influence)” David Schwartz describes,“Leadership as the art of inspiring subordinates to perform their dutieswillingly”. In competency and enthusiasm, a … Read more

INTERPERSONAL AND GROUP RELATIONSHIPS NOTES INTRODUCTION TO GROUPS DefinitionsA group is defined as two or more individuals , interacting andinterdependent who have come together to achieve particular objectives Groups are classified into two categories Formal groups Formal groups are those created to fulfill specific goals and /or carryout specific tasks. They usually have some official … Read more

DECISION MAKING NOTES INTRODUCTION People at all levels of the enterprise must constantly make decision and solve problems. Decision making andproblem solving are important parts of a manager job. Decision may be ofnature: Types of Problem and Decision Managers will make different types of decision under differentcircumstance and the information available when making a decision … Read more

COMMUNICATION NOTES Meaning of communication To commutate is to make known to impart or to transmit information.Communication forms the bridge between manager and employees.Communication is an integral part of managing because it is only throughcommunication that manager can make himself understood by his employees. Manager must receive and give ideas, reports and instruction, explain problem … Read more