SCHEME OF WORK FOR ECONOMICS SS ONE SECOND TERM

Week 1: Capital and entrepreneur as factors of production

Week 2: Division of labour and specialization
Week 3: Scale of production
Week 4: Firm and industry
Week 5: Business Organizations (Sole proprietorship and Partnership)
Week 6: Joint stock companies
Week 7: Cooperative societies and public enterprises
Week 8: Population (Definition, determinant of population size and
population growth)
Week 9: Population Census
Week 10: Theories of population
Week 11: Labour market
Week 12: Revision and examination.

SS1 ECONOMICS NOTE OF LESSON FOR WEEK ONE TOPIC:

PRODUCTION CAPITAL AS A FACTOR OF PRODUCTION
Meaning of capital
Capital is defined as man-made resources or wealth used in the
production of further wealth or goods and services. Capital includes cash,
factories, finished and semi-finished goods, equipment, etc. used in
production. The reward for capital is interest.
Capital to an Accountant means the net worth of a business that is the
original fund with which a person starts a business.
Types of capital
1.Fixed capital: This includes durable assets of a business unit. These assets
do not change form or get used up during production. Fixed capital is
subject to depreciation due to continuous usage. Examples of fixed
capital are factories, machines, motor vehicle, furniture, equipment, etc.
2.Circulating or working capital: This includes material resources of a
business unit that are used up during production. This form of capital is
required on a regular basis to keep production going. Examples of
circulating capital are raw materials, fuel, stationery, etc.
3.Current capital: This is a type of capital needed for day-to-day operations
of a business entity. Examples are finished goods (which can be sold for
cash), cash used in buying raw materials and paying for workers’ wages,
etc.
4.Social capital: This includes capital provided by the government which
indirectly aids production of goods and services. It includes social
amenities or infrastructure such as electricity, roads, seaports, pipe
borne water, hospitals, etc.

Characteristics of capital
1.Capital is man-made or artificial factor of production.
2.Capital is a passive factor
3.Capital takes different form such as building, cash, machines, etc.
4.Some capital change form. For example, finished goods can change into
cash when sold.
5.Capital is partially fixed and partially variable.
6.Fixed capital undergo depreciation.
7.Capital can be replenished if exhausted and replaced if worn-out.

Importance of capital
1.Capital allows work to be done speedily and easily.
2.The use of machines in production helps to improve quality of products.
3.It gives room for efficiency in the production of goods and services.
4.Availability of adequate capital helps in smooth running of a business
unit.
5.Capital assists in increasing the quantity of work which can be done by
labour per hour.
6.Capital facilitates mass production of goods and services

ENTREPRENEUR AS A FACTOR OF PRODUCTION

Meaning of an entrepreneur: An entrepreneur is a person who plans,
organizes, coordinates and manages other factors of production to
obtain maximum output. The entrepreneur does this in order to make
profit. He is the risk bearer. The reward for entrepreneur is profit.
Functions of an entrepreneur
1. Risk Bearing: An entrepreneur bears the risk of the business.
2. Provision of Capital: He provides the capital for starting and running a
business.
3. Decision making: The entrepreneur makes decisions on how the business
is run.
4. Coordination of other factors of production: He coordinates other factors
of production to achieve business objectives.
5. Management of the business: He sees to the day-to-day running and
management of the business operations.
6. Embarking on research: He carries out research in order to know new
production techniques.
 SS1 ECONOMICS NOTE OF LESSON FOR WEEK TWO TOPIC:
DIVISION OF LABOUR AND SPECIALISATION
Meaning of division of labour
Division of labour is the breaking down of production process into
different stages so that each stage is handled by a worker or group of
workers.
Origin of division of labour
The origin of division of labour is usually linked with the observation
Adam Smith narrated in his book (the wealth of nations, published in
1776) with respect to the business of pin-making. From his discovery, the
process of pin-making involved 18 stages, and when all the stages were
carried out by one man, he could produce 20 pins per day. However, with
the application of division of labour, 10 men were able to produce 48000
pins per day as against 20 produced when handled by a man alone.

Meaning of specialisation
Specialization is the concentration of the productive effort of an
individual, a firm or a nation on a particular production line or task. Note
that division of labour results from specialization and there is
specialization in division of labour.
Types of specialisation
1. Specialization by process: This occurs when production process is divided
into parts and each part is handled by a worker, group of workers or a
firm. For example, in a school, a tutor can specialize in teaching of
Economics.
2. Specialization by gender: This occurs when laws, customs and traditions
define the type of job that can be done by males and females. For
example, the law permits only men to drive trailers.
3. Specialization by product: This means the concentration of a
manufacturer on the production of a particular commodity. For example,
a manufacturer concentrating on the production of cement.
4. Specialization by territory: This occurs if a particular country or
geographical area concentrates on the production of a commodity. For
example, petroleum production in the Niger Delta region of Nigeria.

Advantages of division of labour and specialization

1. Greater productivity: It brings about increase in productivity
2. Reduction in cost per unit: It reduces the cost per unit of output and
increases profit.
3. Increase in skill: It increases the skill and efficiency of workers on the
job.
4. Time saving: It saves time and increases speed of production.
5. It allows the use of machines: It encourages use of machines in
production due to routine task.
6. Employment opportunity: It helps in creating more jobs as more hands
are needed
7. Improvement in the quality of goods: It aids in production of
standardized goods (i.e. goods with same size, colour, shape, etc.)

Disadvantages of division of labour and specialisation

1. Monotony of work: Work or task may become monotonous (i.e.
uninteresting or boring)
2. Unemployment: There may be greater risk of unemployment due to use
of machines.
3. Interdependence: It increase the risk of relying on link to another.
4. Reduction in craftsmanship: It may bring about decrease in worker’s
creativity and skill.
5. Immobility of worker: Workers may find it difficult to move to other
tasks.

Limitations of division of labour

1. The size of the market or level of demand
2. The nature of the product.
3. Managerial efficiency
4. The extent of development of technology
5. Availability of labour and capital
6. Government policy which may be favourable or unfavourable.

SS1 ECONOMICS NOTE OF LESSON FOR WEEK THREE TOPIC: SCALE OF

PRODUCTION
Meaning of scale of production
It means the size of a firm’s productive capacity. Scale of production can
be small, medium or large.
Small scale production: This means the productive capacity of a firm is
small. Therefore, small inputs are required to produce small output.
Medium scale production: This means the inputs and output are larger
than small scale but lower to large scale.
Large scale production: This means that productive capacity of a firm is
large, and large inputs are required to produce large output. Economies
of scale is enjoyed here.

Meaning of economies of scale

This is defined as the expansion of productive capacity which leads to
more output and lower unit cost of production. Economies of scale can
be internal or external.
 Internal economies of scale (Advantages of large-scale production These
are the benefits a single firm enjoys due to expansion of its production
size. Also, internal economies are the advantages of largescale
production over small-scale production. They include:
1. Technical economies: A large firm can afford to use modern machines
and employ more experts to carryout production.
2. Marketing economies: The cost of marketing per unit for a large firm is
very low, as it is spread on large quantity of goods produced.
3. Welfare economies: Large firms can provide better conditions of service
(such as medical services, pension contribution, etc.) in order improve
workers’ productivity.
4. Financial economies: Large firms can easily raise more capital by
borrowing from banks, selling of shares, etc. to finance operations.
5. Managerial economies: A large firm can afford to employ expert and
competent managers to help supervise operations in order to optimise
production.
6. Risk-bearing economies: A large firm is able to spread business risk and
diversify resources productively.
7. Research economies: Large firms can invest more money in making
research to discover better and cheaper method of production.

External economies
External economies are benefits enjoyed by an industry or all similar
firms concentrating in an area. These advantages are as follow: 1. Trained
skilled labour will be available for the whole industry 2. Access to auxiliary
firms that will provide support services.
3. Healthy competition among firms which will lead to efficiency.
4. Availability of infrastructures (like electricity, road, etc.) which will aid
production.
5. Firms can use by-products (waste materials) of one another as inputs.
6. Similar firms in a place may jointly embark on research to improve
production.

Diseconomies of scale
These are disadvantages or increased cost per unit faced by firms due to
large scale production. Diseconomies can be internal or external.

Internal diseconomies of scale

These are disadvantages suffered by a single firm due to expansion of its
production size. They are:
1. Low response to changes due to complex operations.
2. Difficulty in proper coordination
3. Delay in policy making and decision taking.
4. There is impersonal relationship between the management and
employees.
5. Large firms suffer from bureaucracy and red-tapism.
(Bureaucracy is the slowdown of work process due to long administrative
chain, while red-tapism is excessive regulations or rigidity of work rules)
6. Over production and wastage of resources.
7. Risks involved in running large firms.

External diseconomies of scale

These are external disadvantages a firm suffers from concentration of
similar firms in an area. External diseconomies include the following:
1. Use of unprofitable incentives to snatch skilled labour.
2. Exposure to attack from enemies.
3. Unhealthy competition among firms.
4. Intense competition for limited available resources.
5. Environmental pollution.
6. Overcrowding of firms in an area which leads to congestion.

SS1 ECONOMICS NOTE OF LESSON FOR WEEK FOUR TOPIC: FIRM AND
INDUSTRY
Definition of firm, plant and industry
Firm: This is a business unit that carries out production or distribution of
goods and services. It is also referred to as a unit of an industry. Examples
of firms in Nigeria are Mobile Nigeria PLC, Zenith bank PLC, Airtel Nigeria,
etc.
Plant: This is the actual place where a firm carries out the production of
goods and services. A plant comprises of equipment, machines, building,
etc. of a business unit. Examples are Guinness plant at Oba AKran, Seven
up plant at Oregun-Ikeja, etc.
Industry: This is a group of firms producing similar products for the same
market. Examples are banking industry, Oil and gas industry, automobile
industry, etc.

Factors that determine the size of a firm

1. The market size: The higher the demand for a firm’s product, the
bigger will be the firm.
2. Risk involved: The bigger the firm, the greater the risk and vice versa.
 3. Capital size: Small capital will reduce the size of a firm. On the other
hand, adequate capital will make a firm big.
4. Ability of the entrepreneur: An efficient entrepreneur will be able to
manage a large firm and vice versa.
5. Stage of development of a firm: A new firm is likely to be small in size
compared to old ones.
6. Increasing cost of expansion: Cost of running large firms is higher than
that of small firms.

Concepts of Total product, Average product and Marginal product

1. Total product (TP): This is the total quantity of a commodity produced
with a given level of productive resources.
Total product (TP) = Average product (AP)  Unit of variable factor or
labour.
Also, total product can be obtained by adding all marginal products, i.e.
Total product (TPn) = MP1 + MP2 + … MPn = ∑MP
2. Average product (AP): This is the output per unit labour or variable
factor.

Average product = or
3. Marginal product (MP): This refers to addition to total product resulting
from additional unit of labour employed.

Marginal product = or ; Where L = Units of

labour.
Graphs of Total product, Average product and Marginal product
Output a

TP

AP
d
0 Labour units
L1 L2 L3
MP

From the diagram above, ‘b’ is the highest value of marginal product,
‘c’ is the highest value of average product, ‘a’ represents the highest
value of total product while ‘d’ is where the marginal product equals
zero.

Tabular illustration of Total product, Average product and Marginal

product
Units of Unit of Total Marginal Average
land labour product product product
(Fixed (Variable
factor) factor)
4hectare 1 15 15 15
4 “ 2 32 17 16
4 “ 3 54 22 18
4 “ 4 72 18 18
4 “ 5 85 13 17
4 “ 6 90 5 15
4 “ 7 90 0 12.86
4 “ 8 84 -6 12
The table above shows the derivation of TP, MP, and AP at different
levels of fixed and variable factors production.

Note the following relationships from the table and graph above:
1. When MP rises, TP also rises but at an increasing rate.
2. When MP is zero, TP is at maximum.
3. When MP turns negative, TP falls.
4. When AP rises, MP is greater than AP.
5. When AP is at maximum, AP is equal to MP.
6. When AP declines, MP in lesser than AP.

Determination of total product, marginal product and average

product
Study the production schedule below and answer the question that
follows:
Hectares Variable TP (kg) AP (kg) MP (kg)
of land (units of
labour)
 150 0 - - -
150 20 240 12 12
150 40 720 B 24
150 60 1560 26 D
150 80 2240 C 34
150 100 2520 25.2 14
150 120 A 21 0
150 140 2240 16 E

Calculate the values of A, B, C, D and E.

Solution
Total Product (TP) = Average product  Units of variable factors or unit of
labour
A = TP = 21  120 = 2520kg
Average Product = (AP) =
B = AP = = 18kg C = AP =
Marginal Product = 28kg (MP) =
=
D = MP =
= = 42kg
E = MP =
= = -14kg

SS1 ECONOMICS NOTE OF LESSON FOR WEEK FIVE TOPIC: BUSINESS

ORGANISATION
Meaning of business organisation
This is a unit or enterprise established for the main purpose of producing
goods and services in order to make profit and satisfy human wants. A
business owned and run by private individuals is known as private
enterprise or private sector business, while a business owned and run by
the government is known as public enterprise or public sector business.
Sometimes, both the government and private individuals may own and
run a business together, such business is called joint enterprise.

TYPES OF BUSINESS ORGANISATIONS SOLE PROPRIETORSHIP (ONE-

MAN BUSINESS)
Sole proprietorship is a business unit that is established, owned,
controlled, financed and managed by one person with the aim of making
profit. Some examples are businesses owned by shoemakers, tailors,
retailers, etc.

Source of finance available to a sole proprietorship

Sources of finance or capital usually available to a sole proprietor may
include personal saving, loans from friends and relatives, micro loans
from banks, trade credit, grants and loans from the government for small
scale businesses, etc.

Characteristics or features of sole proprietorship

1.The business unit is owned, managed and controlled by one person.
2.There is no much legal procedure required to establish it.
3.The owners take all profit and suffers all losses from the business.
4.The business often employs few workers.
5.Capital size is usually small and normally provided by the owner.
6.The sole proprietor has unlimited liability.
7.It is not a legal entity i.e. it cannot sue or be sued in its own name.
 Advantages of sole proprietorship
1. Capital needed to start and run one-man business is
small. 2. It is easy to set up, flexible to operate and easy to
run 3. The sole proprietor takes all the profits.
4. There is privacy as business conducts is basically the affairs of the
owner.
5. Quick decisions are made as the owner makes all policies.
6. Its small size makes it very easy to manage.

Disadvantages of sole proprietorship

1. Owner has unlimited liability; i.e. owner’s property may be sold to
settle business debt.
2. Capital is low because it comes from one person.
3. It lacks continuity as owner’s death may end the business.
4. It is a legal entity and the owner can be personally sued for business
debt or wrongs.
5. No economies of scale because of its small size.
6. Owner bears all risk alone. So, if loss is made, the owner suffers it
alone.

PARTNERSHIP
This is an association of two to twenty persons who agree to combine
resources and carry on business with a view of sharing risk and profit.
Partnership business is usually formed by legal practitioners, doctors,
chartered accountants, etc.
The document that contains the rules and regulations guiding the
operation of the business is called deed of partnership.
 Sources of finance available to partnership
Sources of finance or capital often include contributions from the
partners, trade credit, undistributed profits, capital from newly
admitted partners, loans and overdraft from financial institutions, etc.

Features of partnership
1. It is owned by two to twenty persons or two to ten persons when it is
for banking purpose.
2. Apart from limited partner, the liabilities of the partners are unlimited.
3. It is not a legal entity.
4. Capital usually comes from contribution of the partners.
5. Profits and losses are shared according to agreed sharing ratio.
6. Business duration depends on the agreement signed by the partners.

Types of partners
1. Active partner: An active partner takes active part in the day-to-day
affairs of the business. He has unlimited liability.
2. Sleeping or dormant partner: This partner makes capital contribution,
partakes in sharing of profit but does not take active part in the dayto-
day business affairs.
3. Nominal partner: This partner allows his name to be used in the
business for prestige and reputation purpose. He contributes only
goodwill to the firm.
4. Limited partner: This is a partner with limited liability. He cannot not
take active part in the management of the business affairs.

Advantages of partnership
1. There is a pool of resources, skills, experience and specialisation. 2.
The business has a greater continuity than sole proprietorship
3. There is privacy in conducting affairs of the business.
4. It benefits from joint and better business decision.
5. There is room for expansion and growth of the business.
6. More capital can be raised from contribution of partners.
7. Business risk is shared among all partners.

Disadvantages of partnership
1. Capital may still be insufficient due to the limited number of partners.
2. There is unlimited liability for the active partner
3. The business may die or end at the death or withdrawal of the active
partner.
4. Dispute and disagreement may lead to the end of the partnership.
5. Decision making may be slower compared to one-man business.
6. The business has no separate legal personality.
7. Each partner is responsible for the action of other partners.

SS1 ECONOMICS NOTE OF LESSON FOR WEEK SIX TOPIC: JOINT

STOCK COMPANIES
A joint company is defined as an association of people who jointly pool
capital to establish and own a business unit which has separate legal
personality to make profit.
In Nigeria, joint stock companies are regulated by the Companies and
Allied Matter Acts (CAMA) 1990, and registered by the registrar of the
Corporate Affairs Commission (CAC).

Types of joint stock company

1. Private Limited Liability Company (LTD.): This is a joint stock company
with the minimum of two and maximum of fifty members.
2. Public Limited Liability Company (PLC.): This type of company is
formed with the minimum of seven persons and no maximum number.
 The word ‘public’ simply means members of the public are can buy its
shares on the stock exchange market.

Characteristics of public and private limited liability companies

Public limited liability company Private limited liability company
1. It has a minimum of two It has a minimum of two members
members and no maximum. and maximum number of fifty
members.
2. It can raise capital by selling Capital can be raised by selling
shares publicly. shares privately
3. It uses the abbreviation “PLC.” It uses the abbreviation “LTD.”
4. Shares can freely be transferred Shares are not freely transferred
from one shareholder to except with consent of other
another. members.
5. It issues debentures It does not issue debentures.
6. It is required to publish its It is not required to publish its
annual accounts. annual accounts.
7. Its shares are quoted on the Its shares are not quoted on the
stock exchange. stock exchange.

Similar features of private and public limited liability companies

1. The companies are both set up to make profit.
2. Joint stock companies survive their owners i.e. perpetual succession
3. Shareholders of joint stock companies have limited liability.
4. They both appoint directors for proper management.
5. Annual general meeting is held both in private and public companies.
 Advantages of joint stock companies
1. Large capital can be raised from many shareholders, bank loans, etc.
2. They legal entities i.e. can sue and be sued in their own names.
3. Shareholders have limited liability because only capital invested can be
lost
4. Joint stock companies enjoy perpetual succession
5. They enjoy economies of large-scale production
6. Risk of the business is spread so that each shareholder’s risk is
reduced.
7. Specialisation is applied in the process of operation or production.

Disadvantages of joint stock companies

1. Delay in and decision-taking due to large size and structure.
2. There is presence of much bureaucracy in the public companies.
3. Existence of excessive division of labour may lead to monotony of
work.
4. Joint stock companies are difficult to set up and managed.
5. Payment of corporate tax and tax on dividends leads to double
taxation.
6. There is lack of flexibility due to procedure and formality involved in
their formation.
7. Public companies lack privacy as they are required to publish their
financial statement.

Shares, stocks, bonds and debentures

Share: A share is can be defined as a unit of capital of a company
allocated to an individual.
Stock: This may be defined as a collection of shares into bundle.
Debenture: This is a document issued by a company to acknowledge a
 debt that will be paid back on a certain date with fixed interest. Bond:
This is similar to a debenture as it is a debt instrument used by a
company or government to raise capital.

SS1 ECONOMICS NOTE OF LESSON FOR WEEK SEVEN TOPIC:

COOPERATIVE SOCIETIES
A cooperative society is a voluntary business organisation that is
owned and controlled by an association of people to undertake an
economic activity to the benefit of the members. It is one of the oldest
forms of business organisations.

Features of cooperative society

1. Capital is usually raised through voluntary contribution of the
members.
2. It is a democratic business organisation.
3. Profits are shared on the basis of members’ patronage.
4. The primary motive is to promote the welfare or interest of members.
5. Members have limited liability to the extent of contributions.
6. Membership has no limit and is open to all interested persons.
Types of cooperative society
1. Consumers’ cooperative society
This is the association of consumers who contributes capital to buy
goods in bulk directly from the producers and later distributes to
members cheaply. Consumers’ cooperatives are concerned with
distribution and consumption of commodities, and customers are
mostly the owners.
2. Producers cooperative society
This is an association of producers of similar goods who pool resources
together to promote the production and marketing of their products.
Example of producers’ cooperative society is agricultural cooperative.
3. Credit and thrift cooperative society
This is formed by a group of people who save money regularly to
enable members have access to loan at cheaper interest rate. In some
cases, money may be lent to non-members but at higher interest
rates.
4. Multipurpose cooperative society
This type of cooperative carries out any economic activities performed
in other forms of cooperative society.

Advantages of cooperative societies

1. They help to raise the standard of living of the members.
2. They help to keep prices at bearable limits for the members.
3. They help in raising cheap loans for the members.
4. Encouraging members to save for raining days.
5. Provision of education and social welfare benefits for its members.
6. Members have equal rights irrespective of capital contributed.

Disadvantages of cooperative societies

1. It is difficult to find experienced persons to properly manage a
cooperative.
2. Possibilities of embezzlement and fraud by the executives.
3. Fund may be misused for political purposes.
4. Profits are not taxable and this constitutes loss to the government
5. Capital may be insufficient where members are mostly low-income
earners.
6. Members are mostly admitted based on “who knows who” or personal
relationship.

PUBLIC ENTERPRISES/PUBLIC CORPORATIONS

A public enterprise is a government-owned business organisation
established through the Acts of Parliament to provide essential
services to the people. Examples are Nigerian Television Authority
(NTA), Lagos State Water Corporation, Nigerian Ports Authority, etc.

Features of public corporations

1. They are established to provide essential services.
2. Government appoints board of director to manage them.
3. Public established by Acts of Parliament.
4. They are owned by the government.
5. They are often financed through tax revenue.
6. They are legal entities.
7. Risks of the business are borne by the government and the tax payers.

Reasons for setting-up public enterprises

1. To improve the standard of living of the people.
2. Generation of additional revenue by the government to finance some
projects.
3. To promote economic development
4. Due to huge capital required to establish and run them.
5. To provide essential services for the people at no profit.
6. To create more jobs for the people.
7. Government owned strategic enterprises (e.g. airports) for security
purpose.
 Advantages of public corporations
1. They provide services at affordable prices in order reduce exploitation.
2. Government provides sufficient capital to finance them
3. They are helpful in controlling powers of private monopolists
4. Establishment of public enterprises creates more jobs for the people.
5. They provide essential commodities which promotes standard of living.
6. The government generates extra income (e.g. water rates) from public
enterprises.

Disadvantages of public enterprises

1. Since they lack profit motive, there is lack of motivation for efficiency.
2. There is usually a high degree of bureaucracy.
3. Political activities may interfere with business activities.
4. There is possibilities of fraud and mismanagement of funds.
5. Long chain of command may slow down decision making.
6. Setting-up and running of public enterprises gulp huge capital.
7. Appointment of board of directors may be by “God-fatherism” or
favouritism.

SS1 ECONOMICS NOTE OF LESSON FOR WEEK EIGHT

TOPIC: POPULATION
Definition of population
Population is the total number of people living in an area or country at
a particular period of time.
Population size and Population growth
Population size refers to the actual or estimated number of people
living in a country at a particular period of time.
 Determinants of population size
There are four basic determinants of population size and these are:
1. Birth rate (BR): This refers to the number of live births in a country in
year. All things being equal, the higher the birth rate, the more the
population size and vice versa.
2. Death rate (DR): This refers to the number of deaths in a country
within a given period of one year. The lower the death rate, the higher
the population size, and higher death rate means lower population
size.
3. Immigration (I): This is the movement of people from other countries
into a particular place or country to permanently live there.
Immigration increases the population size.
4. Emigration (E): This is the movement of people out of a place or
country into another country. Emigration usually brings about
decrease in the population size.

Note the following:

a. Natural growth rate: This is the difference between number of
births and deaths.
b. Net migration: This is the difference between the number of
immigrants and emigrants.
c. Population growth rate: This is the rate at which the population of a
country multiplies itself or grows.
Population growth rate = Birth rate – Death rate + net migration
 Population growth
This is the positive or negative change in the population size of an area
over a period of time. The following are related concepts to population
growth:
Increasing population
This is the population that is growing rapidly over a given period. Factor
responsible for increasing population are high birth rate, low death rate,
medical improvement, immigration, practice of polygamy, etc.
Declining population
This is the population that is decreasing rapidly over a given period.
Factors responsible for decreasing population are low birth rate, high
death rate, poor medical care, high rate of emigration, etc.
Ageing population
This is a population with an increasing number of old people and
relatively reducing population of children and labour force. Factors that
may be responsible for ageing population include high infant mortality,
increased emigration of labour force, low fertility rate, etc.

Measurement of population size for a given period

To calculate the population size or figure for a particular year or period,
the following steps may be followed:
Step 1: Identify the population figure for the previous year (PFPY);
Step 2: Add the current year’s births (BR);
Step 3: Subtract the current year’s deaths (DR);
Step 4: Add number of immigrants (I);
Step 5: And finally subtract number of emigrants (E).
Summarily, Population figure for present year = PFPY + BR – DR + I – E.
 SS1 ECONOMICS NOTE OF LESSON FOR WEEK NINE
TOPIC: POPULATION CENSUS
This simply means head count of people living within an area or
country at a particular time.
In Nigeria, it is carried out by the federal government, through the
National Population Commission (NPC), at regular intervals, usually
every 10 years.

Types of population census

1. De facto population census: This is the head count of those who are
physically present in a place.
2. De jure population census: This is the head count of permanent
residents of a particular country or area regardless of where they
reside at the time of census.

Importance or uses of population census

1. It helps in determining the size and growth of population of people in
an area
2. It helps in forecasting the needs of the population size arrived at.
3. It is used in computing per capita income. Per capita income equals
national income divided by the total population
4. It is useful in assessing the standard of living and level of
development.
5. It provides information useful for economic planning.
6. It is used to determine the population density; i.e. to know whether
the population of an area is thick or sparse.
7. It helps in the area of provision of infrastructures like hospital,
schools, road, etc.
 Problems associated with population census in West Africa
1. High level of illiteracy and ignorance.
2. Superstitious belief that misfortune may befall people when counted.
3. Bad town planning or improper numbering of houses.
4. Movement of officials may be hindered due to poor transportation
and communication systems.
5. Shortage of trained census personnel (like statisticians and
demographers).
6. High cost involved in conducting regular population census.
7. Difficulty in conducting census due to religious and customary beliefs.

Population structure or distribution

The following are the categories into which a country’s population
may be distributed or grouped.
1. Sex or gender distribution: This is the classification of the population
of a country according to male and female. Sex distribution enables
the government of a country to ascertain the sex ratio, which is the
number of males in the population per 1000 females.
2. Occupational distribution: This is the classification of the labour force
of a country according to occupations. Occupations can be:
a. Primary or extractive occupation: This is concerned with the
extraction of resources from land. Examples of this occupation
include farming, fishing, mining, etc.
b. Secondary occupation: This is concerned with transformation of
extracted resources into other forms to satisfy human wants.
Examples of jobs here are manufacturing, construction, etc.
c. Tertiary occupation or service occupation: This occupation involves
the rendering of services such as legal services, teaching, trading,
banking, distribution, transportation, etc.
3. Age distribution: This refers to the classification of population of a
country into age groups. The population of a country may be divided
into the following age brackets:
Age bracket Details
1. 0 – 11 years Pre-primary and primary school age
bracket.
2. 12 – 17 years Secondary school age bracket.
3. 18 – 24 years Higher institution age bracket.
4. 25 – 64 years Working population or labour force
bracket.
5. 65 years and above The aged or retired age bracket.
The above can be broadly divided into:
a. Dependent population: This is made up of children and aged or
retired people that are outside the bracket of the labour force.
b. Independent population: It constitutes population of the country that
is actively involved in productive activities. That is, it is the working
population of a country whether employed or employable.
4. Geographical distribution: This is the classification of the population
of a country according to where the people live. It helps in
determining the population density of a country. Population density
is the total number of people per square mile or kilometre.

Population density

Determination of dependency ratio

Dependency ratio is the ratio of dependent population to independent
population in the country.
 Dependency ratio = Dependent population : Independent population The
following are some of the economic implications of high dependency
ratio in the country:
1. Low saving and investment in the country.
2. Increase in government expenditure to cater for more dependants
(children and aged).
3. Increase in taxation to make up for high level of government
expenditure.
4. Reduction in the supply of labour due to low size of labour force.
5. High level of importation to supplement low production in the
country.
6. Low standard of living in the country.

Questions
The age distribution below relates a local government area.
Age group 0 -15 16 -35 36 – 60 61 and
above
Population 20,000 13,000 30,000 12,000
Determine the dependency ratio.
Solution
Dependent population = 20000 + 12000 = 32000
Independent population = 13000 + 30000 = 43000
Dependency ratio = Dependent Population : Independent Population
= 32000: 43000
= 32 : 43
The dependency ratio of 32 : 43 indicates that area has a low
dependency ratio.
 SS1 ECONOMICS NOTE OF LESSON FOR WEEK TEN TOPIC:
POPULATION THEORIES
There are three theories of population that are considered in this
book and these are:
A. Malthusian theory of population
This theory was propounded by Reverend Thomas Malthus who
published a book titled ‘Essays on the principle of population’, where
he explained certain issues concerning the trend of population and
food growth. Issues Malthus came up with about population in his
essays are:
1.That population of human was growing at a geometric progression
(i.e.
1, 2,4,8,16,32...) while food production was at arithmetic progression
(i.e. 1, 2, 3, 4, 5…).
2.That there is tendency for human beings to outgrow food available.
3.That unless population increase is matched with means of sustenance,
positive and preventive checks will come into force.
4.Positive checks include war, pestilence, famine, epidemics, etc.
5.Preventive checks are late marriage, moral restraint by married
couples, law on number of births per couple, etc.

Events that proved Malthusian theory wrong

Summarily, the following are the events that generally made
Malthusian theory to be wrong:
1. Discovery of new lands (like America, Canada, Australia, etc.) for
human settlement.
2. Breakthrough in science and technology led to increase in food supply.
3. Industrial revolution in Europe aided production of abundant goods
for people.
4. Positive change in social attitudes towards having large family.
5. Efficient transportation allows materials to be provided to areas in
need of them.
6. Medical improvement enables people to live long.

Note: Malthus theory is relevant to African countries given its high

population, low food production, low standard of living, and
prevalence of poverty.
B. Demographic transition theory
Demographic transition theory describes the changes or growth a
country’s population structure undergoes as a result of economic
development. Demographic transition theory is one of the current
theories of population. According to the theory, there are three stages
of demographic transition which include:
1. Pre-industrialisation: In this stage, there is high birth rate and high
death rate. Population growth here is static or growing at a very slow
rate. Birth rate is high due to high level of illiteracy, early marriage,
etc. On the other hand, death rate is high due to poor medical
facilities, poor diet, etc.
2. Industrialisation or transitional stage: Here, there is high birth rate
and low death rate which leads to a rapidly growing population.
Improved medical services, improved diet, higher income, etc. will
increase life expectancy and a reduction in death rates. Many
developing countries are at this stage of transition.
3. Post industrialisation: In this stage of transition, there is low birth rate
and low death rate. Here, there is relatively stable population growth
as people now control births. Most developed nations are in this stage
of transition.
 Population and economic development
A. Under population: It is the population that is less than the available
economic resources of a country. Under-population is below the
optimum population. Some of the consequences of under-population
are:
i. Low labour force.
ii. Low level of production. iii. Low standard of
living. iv. Low demand.
v. Underutilisation of economic resources.

B. Over-population: It is the population that exceeds the available

economic resources of the country. This population is above the
optimum population. Some of the consequences of over-population
are:
i. Low standing of living.
ii. Excess of demand for goods and services. iii. Increase in social
problems such as robbery, drug trafficking, etc. iv. High level of
unemployment.
v. High dependency ratio.

C. Optimum population: Optimum population is defined as the

population which gives the maximum output per head, using the
available material resources and technology. It corrects the defects of
over-population and under-population. Its benefits are high standard
of living, maximum level of production, full employment of resources,
etc.
 Diagrammatic illustration of optimum population, under population,
and over population
Optimum
Output Population
per head

Under population Over population

0
Population size

How to control rapid population growth 1.

Family planning or birth control measures.
2. Discouragement of polygamy.
3. Sex education to discourage casual sex and keeping of large families.
4. Encouragement of late marriages.
5. Use of strict laws to discourage immigration.
6. Government may legalise abortion.
7. Engaging women more in full-time employment.

SS1 ECONOMICS NOTE OF LESSON FOR WEEK ELEVEN TOPIC:

LABOUR MARKET
Definition of labour Market
Labour market is the market where wages and other conditions of
employment are negotiated and determined.
 Definition of labour force
Labour force refers to the working population of a country. It consists of
all active working persons between the age of 17 to 65 (this differs from
countries to countries).
Factors that affects the size of labour force
The size of labour force in any country depends on the following:
1. Size of population: The larger the population size, the greater the
labour force.
2. Official school leaving age: If the fixed official school leaving age is
high, it will reduce the labour force.
3. Retirement age: The longer the official retirement age, the larger the
labour force.
4. Number of working hours/days: The number of hours/days spent at
work affect the supply of labour.
5. The number of able-bodied persons who are not willing to work.
6. The number of women who take up paid employment.

MOBILITY OF LABOUR
It refers to the ease with which workers can move from one occupation,
industry and geographical area to another.

Types of mobility of labour

1. Industrial Labour Mobility: This refers to the movement of workers
within the same industry or from one industry to another. This can
horizontal or vertical.
Vertical industrial mobility of labour takes the form of promotion within
the same place of work or industry while horizontal industrial mobility of
labour is the movement of workers from one place of work to another
but still in the same rank or position.
2. Occupational Mobility of Labour: This refers to the movement of
workers from one type of job to another. Movement within the same
nature of job is horizontal occupational mobility while changing into a
different type of job is vertical occupational mobility.
3. Geographical labour mobility: It refers to the movement of workers from
one geographical area to another. Movement within the country is called
internal mobility while movement of labour from one country to another
is external movement.

Importance of mobility of labour

1. It helps to solve the problems of unemployment in a specific area.
2. It helps to increase the level of production.
3. Productivity is enhanced by the vertical mobility of labour. (it’s an
incentive to work).

Limitations to Mobility of Labour.

1. Economic and social infrastructure.
2. Immigration requirement and government policy.
3. Sociological factor (i.e. strong attachment to an environment and fear of
moving to a new area)
4. Conditions of service in one’s place of work.
5. Length and cost of training.
6. How young or old a worker is will determine his mobility.
7. Climatic condition of a place 8. Ignorance about job availability.