CHAPTER ONE

ECONOMICS


It’s a social science that studies the production , distribution and consumption of good and services.

Terminologies

Scarcity- when the demand of good and services are greater than available goods and services.

Utility-is the satisfaction received from consuming goods and services.

Money value-it is the amount that will be paid in cash for an asset or services if it were to be sold to a third party.

Choice-it is the ability of consumer or a producer to decide which good and services to purchase from arrange of all possible options.

Opportunity cost-represent potential benefits an individual or an investor misses out when choosing one alternative over the other.

Wants-a desire to consume commodity.

Economic system-it is a system of production , resource allocation & distribution of good & services within a society or a given geographical areas.

Planned/command economic system

It’s economic system where government makes most /all of the important decision about the production and distribution of good and services.

Characteristics/features

All resources are owned and managed by government.
No customer or producer severeignity
There’s no Monopoly
There’s equal distribution of resources

Profit is not objective but to provide good and services to all.
Advantages

Prices are under control hence affordable
Less inequality of wealth
Low level of unemployment
It eliminate wastes resulting from competition within firms
Disadvantages
Lack of profit motivation making firm to become inefficient.
Consumers can not choose which goods and services to be provided.
Alot of time and money is wasted in communicating instructions from the govt to the firm.
Mixed economic system

It’s a system that combine both individual sector and government sector.

Characteristics
There is coexistence of private and public sector
Resources are allocated as planned by two sectors
There’s provision of social security
There’s complete economic freedom
There’s regulation of private security operation thus no monopoly results.
Advantages

It promote social welfare
There’s economic stability
There’s reduced inequality
Right of individual that’s,-freedom to buy any commodity is assured.
There’s systematic planning of resources by government.
There’s is freedom of enterprise and profit motivation.

Disadvantages

Threat of nationalism
There’s unhealthy competition
There’s unemployment and uncertainty
There’s inefficient for the public sector people bearing the losses

PRODUCTION

It’s an act of transferring raw materials into finished goods.

Stages of production

Primary production
Secondary production
Tertiary production

Primary production-involved extraction of raw materials in their natural form from nature.

Secondary production-This is the manufacturing and assembly process of goods.

Tertiary production-concernes with person or services like touching , insurance etc.

Factors of production and their rewards

Land
Physical area where economic activities take place

Characteristics

-Immobile
-Free gift from nature
-Has no cost of production
-Reward is real
-Effiency can be improved

Labour
Effort that individual made when they produce good and services.

Characteristics

-Perishable in nature
-Immobile
-Has poor bargaining power
-Supply at labour is inelastic
-Inseparable from the labour


Division of labour
It’s the separate at a work process into a number of each , to separate person or group of persons.

Advantages

1. Improve efficiency of labour when he/she repeats doing the same tasks.
2. Facilitate the use of machinery resulting in inventories.
3. Time and materials are put to be the best and most efficient use.

Disadvantages
Repetion make labour to feel monotonous and state.
Narrow specialization reduces the possibility of labour to find alternative owner of employment.
Kill the growth of handicrafts and the workers loses the satisfaction of having move a commodity in full.

Capital
Refers to man-made goods which are used in Production of other goods.

Characteristics
It’s a passive factor ineffective without the cooperation of labour
It’s man made
It’s elastic- supply can be adjusted quickly & easily depending on the demand.
Temporary in nature
It’s prospective
It’s productive help in increasing Production
It has high mobility
It’s not indispensable(necessary) , Production is possible even without capital
Entrepreneurship

Art of identifying between opportunity and mobilising the resources torward initiating a successful business.

Characteristics
Related to innovation
Profit potential
Risk bearing
Idea generation
Economic and dynamic activity.


CHAPTER TWO

OFFICE ADMINSTRATION

OFFICE-

It’s a place set a side for clerical, Administration & communication nature of work.