G11-Economics-STB-2023-web

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  • Title Page: Grade 11 Economics Student Textbook

  • ISBN: 978-99990-0-058-1

  • Publisher: Federal Democratic Republic of Ethiopia, Ministry of Education

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  • Care Instructions:

  • This textbook is school property; handle with care.

  • Suggestions for maintaining the textbook:

    1. Cover with protective material.

    2. Store in a clean, dry place.

    3. Ensure hands are clean before handling.

    4. No writing on the pages.

    5. Use a bookmark to save pages.

    6. Do not tear or cut pages.

    7. Repair tears with tape or paste.

    8. Pack carefully in school bags.

    9. Handle gently when passing to others.

    10. Open new books gently to preserve binding.

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  • Authors:

    • Guta Legesse Tessema (PhD)

    • Dereje Fekadu Deressa (MSc)

  • Editors:

    • Chanyalew Degefa Merga (MA)

    • Degela Ergano Done (PhD)

    • Taye Gebremariam Olamo (PhD)

  • Illustrator: Tadele Bayu Genet (MSc)

  • Design: Amsalu Dinote Kuye (MSc)

  • Evaluators:

    • Mekonnen Bersisa Gadisa (PhD)

    • Tariku Mulushewa Dessea (MSc)

    • Ararsa Hora Dabi (MSc)

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  • Publication Information:

  • First Published: August 2023

  • Supported by various international organizations for educational improvement.

  • Rights reserved, no part of the textbook can be reproduced without permission.

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  • Introduction to Economics:

  • Economics studies human behavior regarding choices made during successes or difficulties.

  • Equips students with analytical and problem-solving skills for various economic contexts.

  • Promotes financial literacy covering personal finance topics such as saving and budgeting.

  • Designed to ensure students understand economic systems locally and globally.

  • Course structure: 7 units covered over 87 hours with 3 periods per week.

  • Economics is compulsory in the Ethiopian General Education Curriculum, with relevance in various disciplines.

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  • Expected Student Outcomes by Year End:

  • Knowledge: Understanding principles and theories of economics.

  • Attitude: Cultivating curiosity and cooperative skills.

  • Digital Literacy: Skills in data management.

  • Communication Skills: Proficiency in teamwork and presentations.

  • Business Management Skills: Ability to support or start businesses and engage in contemporary economic issues.

  • Research Skills: Conducting economic research involving data analysis.

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  • Table of Contents

  1. Theory of Consumer Behavior and Demand

    • Introduction

    • Cardinal Utility Approach

    • Ordinal Utility Theory and Preferences

  2. Market Structure and the Decision of Firms

    • Introduction to Market Structures

    • Perfect Competition Market

    • Pure Monopoly Market

  3. National Income Accounting

    • Introduction

    • GDP and GNP Concepts

    • Approaches to GDP Measurement

  4. Consumption, Saving, and Investment

  5. Trade and Finance

  6. Economic Development

  7. Main Sectors and Policies of Ethiopia

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  • Continued Table of Contents

  • Further details under each heading with sub-sections and specific topics to be covered throughout the textbook.

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  • Continued Table of Contents

  • Breakdown of units related to consumption, saving, investment, trade finance, and major economic development concepts for comprehensive understanding.

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  • Continued Table of Contents

  • Detailed structure for the topic 'Economic Development' and 'Main Sectors Policies and Strategies of Ethiopia', emphasizing Ethiopia's unique economic landscape.

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  • Continued Table of Contents

  • Overall detailed view of the units, including an introduction and direct explorations into economic policies affecting various sectors such as agriculture, industry, and service sectors.

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  • Overview of Unit 1: Theory of Consumer Behavior and Demand:

  • Consumer Agents: Understand the role of consumers among businesses, governments, and entrepreneurs.

  • Goals of Consumers: Maximization of satisfaction given limited resources.

  • Research Focus: Study consumer behaviors and derive decisions affecting utility and satisfaction.

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  • Review of Cardinal Utility Approach:

  • Key Concepts: Utility, Demand Curve, Indifference Curve, Budget Line, Consumer Optimum.

  • Importance of measuring consumer satisfaction through cardinal utility principle established by utility being measurable in cardinal numbers.

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  • Marginal Utility Defined:

  • Additional satisfaction derived from consuming an extra unit, leading into law of diminishing marginal utility.

  • Utility Measurement: Describes the importance of consumer preferences and application to market choices.

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  • The Ordinal Utility Theory and Preferences:

  • Describes consumer choices among different goods and services, relation to satisfaction levels.

  • Concepts: Indifference sets and curves.

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  • Preferences Framework:

  • Recognizes consumer ability to rank preferences and express choices among alternatives.

  • Emphasis on ordinal utility – ranking preferences through indifference curves.

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  • Assumptions of Ordinal Utility Theory:

  • List of key assumptions that underpin consumer rationality and decision-making processes to maximize utility.

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  • Indifference Curves:

  • Visual representation of consumer preferences among goods, showing effects of different combinations on satisfaction.

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  • Indifference Schedule: Defined as a listing of different combinations of goods providing the same level of utility for a consumer.

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  • Properties of Indifference Curves:

  1. Downward sloping (negative slope)

  2. Do not intersect

  3. Upper curves represent higher utility

  4. Convex to origin

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  • Marginal Rate of Substitution (MRS):

  • Concept explained as the rate at which consumers are willing to substitute one good for another while maintaining the same utility.

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  • Special Types of Indifference Curves:

  • Discusses indifference curves for perfect substitutes and perfect complements and how they vary based on consumer preferences.

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  • Budget Line or Price Line:

  • Definitions, importance, and factors affecting budget lines including income and prices.

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  • Examining Budget Constraints:

  • Understanding consumer constraints in relation to spending and purchasing power.

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  • Consumer Equilibrium:

  • Necessary conditions for achieving consumer optimum outlined, including tangency of budget line and indifference curve.

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  • Changes Impacting Consumer Equilibrium:

  • Overview of how changes in income or prices impact the consumer's budget line and resulting equilibrium.

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  • Consumer Decisions within Budget Constraints:

  • Analyzing decision-making regarding the allocation of budgets toward consumption choices.

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  • Equilibrium Derived from MR and MC:

  • Overview of profit maximization in relation to marginal revenue and marginal cost within economics.

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  • Consumer Optimum Position Illustrations:

  • Graphical representations of consumer decisions illustrating equilibrium between marginal rates and price ratios.

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  • Summary of Unit 1 Containing Key Concepts and Review Questions:

  • Provides a summary of utility concepts, consumer surplus, demand curvatures, and the relevance of budget constraints.

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  • Review Questions for Reinforcement of Learning from Unit 1:

  • Includes true/false questions, multiple choice, and discussions to facilitate understanding and retention of concepts.