Grade 12 Economics Textbook Notes

Grade 12 Economics Textbook Notes

Page 1

The page includes the title of the textbook: ECONOMICS STUDENT TEXTBOOK GRADE 12, along with the FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA MINISTRY OF EDUCATION and the FDRE MOE acronym.

Page 2

This page provides instructions on how to take care of the textbook. Key points include:

  • Covering the book with protective material.
  • Keeping the book in a clean, dry place.
  • Ensuring clean hands when using the book.
  • Avoiding writing on the cover or inside pages.
  • Using a bookmark.
  • Not tearing or cutting out pictures or pages.
  • Repairing torn pages with paste or tape.
  • Packing the book carefully in a school bag.
  • Handling the book with care when passing it to another person.
  • Properly opening a new book to maintain its condition.

Page 3

Lists the writers, editors, illustrators and evaluators of the Economics Student Textbook.

  • Writers: Seyoum Yunkura Hameso (PhD), Abate Yesigat Taye (PhD)
  • Editors: Chanyalew Degefa Merga (MSc), Degela Ergano Done (PhD), Taye Gebremariam Olamo (PhD)
  • Illustrator: Tadele Bayu Genet (MSc)
  • Book Designer: Amsalu Dinote Kuye (MSc)
  • Evaluators: Mekonnen Bersisa Gadisa (PhD), Tariku Mulushewa Dessea (MSc), Ararssa Hora Dabi (MSc)

Page 4

Provides publication information, copyright details, acknowledgements and ISBN number.

  • First Published: August 2023
  • Publisher: Federal Democratic Republic of Ethiopia, Ministry of Education
  • Support: General Education Quality Improvement Program for Equity (GEQIP-E) supported by various international organizations and countries.
  • Copyright: © 2023 by the Federal Democratic Republic of Ethiopia, Ministry of Education. All rights reserved.
  • ISBN: 978-99990-0-059-8

Page 5

This section introduces economics and its importance, especially in light of global economic problems. Key points include:

  • Economics is essential for understanding and solving problems like poverty, unemployment, inflation, and recession.
  • Studying economics equips students with knowledge, skills, and values for understanding economic issues and engaging in the community.
  • The textbook supports learning economics to interpret economic events and manage economic decisions.
  • Economics is a compulsory subject in Social Sciences and Agriculture for Grade 12 students in Ethiopia.
  • The Grade 12 Economics course consists of 8 units and will be covered in 87 hours and 45 minutes per year, with 3 periods each week (45 minutes per period).

Page 6

This page outlines the expected attributes and profile of students at the end of Grade 12 Economics study. These include:

  • Knowledge: Knowledgeable in subject area (principles, theories, applications, etc.).
  • Attitude: Cooperation, Curiosity, Motivation to become successful.
  • Digital literacy: Data collection and organization, Data analysis, Report writing, Data analysis skills and tools.
  • Communication skills: Group discussion, Teamwork, Presentation.
  • Business management skills: Start one’s own business, Support family business.

By the end of Grade 12, students should:

  • Continue their education in social and business sciences.
  • Appreciate the link between production, distribution, and consumption.
  • Articulate contemporary issues in economic growth and development.
  • Participate in collaborative social and economic development engagements.
  • Recognize and appreciate cultural aspects and livelihoods.
  • Define key macroeconomic variables using inquiry skills.
  • Articulate the link between poverty and environmental degradation.
  • Contribute to sustainable development efforts in Ethiopia and beyond.

Page 7

Table of Contents for the textbook is presented. Unit 1: The Fundamental Concepts of Macroeconomics Introduction, 1.1 Definition and Focus Areas of Macroeconomics Revisited, 1.1.1 Definition of Macroeconomics, 1.1.2 The Focus Areas of Macroeconomics, 1.2 Key Challenges in Macroeconomics, 1.2.1 Economic Growth, 1.2.2 Inflation, 1.2.3 Unemployment, 1.2.4 Business Cycle, 1.2.5 Balance of Trade, 1.3 The Schools of Thought in Macroeconomic Analysis, 1.3.1 Evolution and Recent Developments, 1.3.2 The Classical and Neoclassical, 1.3.3 Keynesian, 1.3.4 Monetarist, 1.3.5 New Classical, 1.3.6 New Keynesian, Unit Summary, Review Questions. Unit 2: Aggregate Demand and Aggregate Supply Analysis Introduction, 2.1 Aggregate Demand, 2.1.1 Concept of Aggregate Demand, 2.1.2 The Aggregate Demand Curve, 2.1.3 Shifts in the Aggregate Demand Curve, 2.2 Aggregate Supply, 2.2.1 Concept of Aggregate Supply

Page 8

Table of Contents continues. Unit 2 (cont.): 2.2.2 The Upward Sloping Aggregate Supply Curve. 2.2.3 The Vertical Aggregate Supply Curve: The Long Run (LRAS), 2.3 Equilibrium of Aggregate Demand and Aggregate Supply, 2.3.1 Shocks to Aggregate Demand, 2.3.2 Shocks to Aggregate Supply, Unit Summary, Review Questions. Unit 3 Market Failure and Consumer Protection Introduction, 3.1 Market Failure, 3.1.1 Common Types of Market Failures, 3.1.2 Solutions to Market Failures, 3.2 Public Goods, 3.3 Externalities, 3.4 Asymmetric Information, 3.5 Consumer Protection, Unit Summary, Review Questions. Unit 4: Macroeconomic Policy Instruments Introduction, 4.1 Definition and Types of Macroeconomic Policies, 4.2 Fiscal Policy, 4.2.1 Tools of Fiscal Policy, 4.2.2 Types of Fiscal Policy, 4.3 Monetary Policy, 4.3.1 Tools of Monetary Policy, 4.3.2 Types of Monetary Policies, 4.4 Income Policy and Wage, 4.5 Foreign Exchange Policies, Unit Summary, Review Questions

Page 9

Table of contents is continued. Unit 5: Tax Theory and Practice Introduction, 5.1 Taxes: Definition, Principles, Objectives and Classifications, 5.1.1 Definition and Terminologies in Taxation, 5.1.2 Objectives of Taxation, 5.1.3 Principles of Taxation, 5.1.4 Characteristics of a Good Tax System, 5.1.5 Classification of Taxes, 5.1.6 Major Categories and Sources of Taxes, 5.2 Approaches to Tax Equity, 5.2.1 The Benefits Approach, 5.2.2 The Ability-to-pay Approach, 5.3 Tax System and Structure in Ethiopia, 5.4 Types of Tax and Tax Accounting in Ethiopia, 5.5 Problems Associated with Taxation in Ethiopia, Unit Summary, Review Questions. Unit 6: Poverty and Inequality Introduction, 6.1 Concept of Poverty and Its Measurement, 6.1.1 Poverty, 6.1.2 Types of Poverty, 6.1.3 Measuring Poverty, 6.1.4 Sen’s Approach to Poverty and Wellbeing, 6.2 Concept of Inequality and its Measurements, 6.3 Global and Regional Poverty, 6.4 Women and Poverty, 6.5 Overview of Poverty and Inequalities in Ethiopia, 6.6 Role of Indigenous Knowledge in Reducing Poverty, Unit Summary, Review Questions

Page 10

Table of contents continues: Unit 7 Macroeconomic Reforms in Ethiopia Introduction, 7.1 National Development Objectives and Strategies- Historical Review, 7.1.1 National Development Plan during the Imperial Period (1950-74), 7.1.2 National Development Plan under the Socialist Period (1974-1991), 7.1.3 National Development Plan under FDRE, 7.1.4 National Development Plan aer a Reform (2021-2030), 7.2 Overview of Home-grown Economic Reforms in Ethiopia, 7.2.1 Macroeconomic Reforms, 7.3 Fiscal Decentralization, 7.3.1 Disadvantages and Advantages of Decentralized System, Unit Summary, Review Questions. Unit 8 Economy, Environment and Climate Change Introduction, 8.1 Economy and the Environment, 8.1.1 Rural Development and Environment, 8.1.2 Urban Development and Environment, 8.1.3 Population, Resources and the Environment, 8.2 Global Warming and Climate Change, 8.2.1 Global Warming, 8.2.2 Climate Change, 8.2.3 Scope of the Problem and the Causes of Climate Change, 8.2.4 Indicators of Climate Change, 8.2.5 Impacts of Climate Change, 8.2.6 Vulnerability to Climate Change, 8.2.7 Means to Address Climate Change Challenges, 8.3 Green Economy and Green Growth, 8.4 Overview of Environment and Climate Change in Ethiopia, Unit Summary, Review Questions

Page 11

This page introduces Unit 1: The Fundamental Concepts of Macroeconomics.

  • Briefly recaps economics as a subject from grades 9-11 reference was made to macroeconomics.
  • Outlines the unit's structure, including the definition and focus areas of macroeconomics, the key challenges of macroeconomics (economic growth, inflation, unemployment, business cycles, and balance of trade), and the evolution of macroeconomics alongside different schools of thought.
  • Learning Outcomes for the unit (identifying differences between micro and macroeconomics, describing focus areas, analyzing challenges, differentiating schools of thought, and explaining contributions of different schools).

Page 12

  • Presents Key Concepts related to macroeconomics such as microeconomics, macroeconomics, macroeconomic goals, macroeconomic variables, GDP, GNP, economic growth, inflation, unemployment, business cycles and trade balance were mentioned.