SCHEME OF WORK FOR ECONOMICS
THIRD (3rd) TERM.
1.Elementary Treatment of Utility Theory
2. Money -Demand for and Supply of Money
3.Money – inflation and Deflation
5. Elements of National Income Accounting
6. Balanced and Unbalanced Budget
7. Types of Financial Institutions and Their Functions
8. Elementary Treatment of Fiscal Policy.
Topic : Elementary Treatment of Utility Theory.
(a) The concept of Utility
(b) Concepts of total , average and marginal utility and utility maximisation
(d) principles of Utility maximisation and diminishing marginal utility
(e) Mathematical approach to Consumer Theory.
By the end of the Lesson, students should be able to:
(i) Define utility and state the types of utility
(ii) explain the meaning of total utility, average utility, marginal utility and utility maximisation
(iii) Demonstrate the derivation of demand curve from utility theory
(iv) Solve some calculations on consumer theory.
(a) Total Utility = average utility × quantity consumed
(b) Average Utility= Total Utility ÷ quantity consumed
(c) Marginal Utility= ∆TU\∆ in consumption= TU2 – TU1 ÷ q2 -q1
Students Should read up Utility Theory and answer the questions below:
(i) (a) Define Utility
(b) Discuss the various types of utility you know
2. Explain in details with the aid diagrams (i) total utility (ii) average utility (iii) marginal utility.
3. Explain the law of diminishing marginal utility and state the condition under which a consumer is assumed to have maximized his utility .
further assignments on calculations coming.