Departments › Accountancy › Module I › Economics Skills

Economics Skills

Accountancy · Level 6  ·  12 Chapters

Can I download Economics Skills notes as a PDF?

Yes. The notes download as a PDF too: every chapter has a Download PDF button above its notes. Sign in and click it. Each download comes from your plan's monthly allowance or from credits. To read before you sign in, the first topic of every chapter opens to anyone, and a Profplanet plan opens the remaining topics.

▣

What Economics Skills covers

In this unit, you will be able to confidently apply core economic concepts and methodologies to real-world situations in your trade. You’ll learn how to analyze and manage resources, understand money and financial systems, and tackle challenges like inflation and unemployment with practical solutions. By the end, you’ll be ready to make informed decisions that support your organization’s economic objectives and contribute to a thriving workplace.

■

Careers after Economics Skills

Understanding economics is a powerful tool that opens doors to numerous career paths and entrepreneurial opportunities across Kenya’s vibrant economy. Whether you dream of working in bustling urban centers or contributing to rural development, mastering these economic skills will equip you to make informed decisions, optimize resources, and drive growth in any sector.

  • In the agribusiness sector, companies like KTDA rely on economic analysis to manage resources efficiently, forecast market demands, and improve profitability—skills you can apply to help farmers increase their incomes and sustain their livelihoods.
  • The matatu industry and other transport enterprises use economic principles to set fares, manage costs, and respond to market changes, creating opportunities for you in operations management or as an entrepreneur running your own transport business.
  • County governments and agencies like KenGen require economic expertise to plan budgets, allocate resources effectively, and evaluate the impact of projects, making you valuable in public service roles that shape Kenya’s infrastructure and energy future.
  • The jua kali sector thrives on efficient resource use and understanding market dynamics, enabling you to start and grow small businesses that serve local communities with innovative products and services.
  • In hospitality and tourism, economic skills help manage finances, analyze customer trends, and optimize service delivery, paving the way for careers in hotel management, event planning, or owning your own guesthouse.
  • Knowledge of financial institutions and money theories prepares you for roles in banking, microfinance, and investment firms regulated by the Central Bank of Kenya, where you can advise clients or develop financial products that support Kenya’s economic growth.

Mastering these economics skills not only prepares you for a rewarding career but also empowers you to contribute meaningfully to Kenya’s development and your personal success story. Your future in economics is bright—embrace it with confidence and purpose!

Chapters

1
Apply fundamental of economic concepts
10 topics
Open chapter →
2
Apply demand concept in market analysis
11 topics
Open chapter →
3
Apply supply concept in market analysis
8 topics
Open chapter →
4
Set prices of the products
6 topics
Open chapter →
5
Apply consumer behaviour theory
9 topics
Open chapter →
6
Apply production theory
15 topics
Open chapter →
7
Apply costs theory
4 topics
Open chapter →
8
Differentiate market structures
4 topics
Open chapter →
9
Determine national income
21 topics
Open chapter →
10
Demonstrate Understanding of money and banking
8 topics
Open chapter →
11
Demonstrate Understanding of Inflation and unemployment
8 topics
Open chapter →
12
Demonstrate understanding of international trade
9 topics
Open chapter →
What Economics Skills covers: 108 main topics in 12 chapters

1. Apply fundamental of economic concepts

  1. 1.1 Meaning of terms understanding of
  2. 1.2 Scope of economics principles of
  3. 1.3 The methodology of economics Positive, Normative reports and scientific
  4. 1.4 Basic concepts
  5. 1.5 Economic systems: free economy, planned economy and mixed economy

2. Apply demand concept in market analysis

  1. 2.1 Meaning of terms demand in market
  2. 2.2 Individual demand versus analysis market demand
  3. 2.3 Factors influencing demand
  4. 2.4 Exceptional demand curves reports
  5. 2.5 Types of demand
  6. 2.6 Movement along and shifts of demand curves
  7. 2.7 Elasticity of demand
  8. 2.8 Types of elasticity: price, income and cross elasticity
  9. 2.9 Measurement of elasticity; point and arc elasticity
  10. 2.10 Factors influencing elasticity of demand
  11. 2.11 Application of elasticity of demand in management and economic policy decision making

3. Apply supply concept in market analysis

  1. 3.1 Meaning of terms
  2. 3.2 Individual versus market supply
  3. 3.3 Factors influencing supply
  4. 3.4 Movements along and shifts of supply curves
  5. 3.5 Meaning of elasticity of supply
  6. 3.6 Price elasticity of supply
  7. 3.7 Factors influencing elasticity of supply
  8. 3.8 Application of elasticity of supply in management and economic policy decision making

4. Set prices of the products

  1. 4.1 Interaction of supply and demand, equilibrium price and quantity
  2. 4.2 Mathematical approach to equilibrium analysis|
  3. 4.3 Stable versus unstable equilibrium
  4. 4.4 Effects of shifts in demand and supply on market equilibrium
  5. 4.5 Reasons for price fluctuations
  6. 4.6 Government action to stabilise the prices and incomes

5. Apply consumer behaviour theory

  1. 5.1 Approaches to the theory of the consumer- cardinal versus ordinal approach
  2. 5.2 Utility analysis, marginal utility (MU), law of diminishing marginal utility (DMU)
  3. 5.3 Limitations of cardinal approach
  4. 5.4 Indifference curve analysis
  5. 5.5 Budget line
  6. 5.6 Consumer equilibrium; effects of changes in prices and incomes on consumer equilibrium
  7. 5.7 Derivation of a demand curve
  8. 5.8 Applications of indifference curve analysis: substitution effect and income effect for a normal good, inferior good and a giffen good; derivation of the Engels curve
  9. 5.9 Consumer surplus

6. Apply production theory

  1. 6.1 Factors of production
  2. 6.2 Mobility of factors of production
  3. 6.3 Production function analysis
  4. 6.4 Short run analysis
  5. 6.5 Total product, average and marginal products
  6. 6.6 Stages in production and the law of variable proportions/ the law of
  7. 6.7 diminishing returns
  8. 6.8 Long run analysis
  9. 6.9 Isoquant and isocost lines
  10. 6.10 The concept of producer equilibrium and firm's expansion curve
  11. 6.11 Law of returns to scale
  12. 6.12 Demand and supply of factors of production
  13. 6.13 Wage determination theories
  14. 6.14 Trade unions: functions and challenges
  15. 6.15 Producer surplus/economic rent

7. Apply costs theory

  1. 7.1 Short run costs analysis and size of the firm’s total cost, fixed cost, average cost, variable costs and marginal cost
  2. 7.2 Long run costs analysis
  3. 7.3 Optimal size of a firm
  4. 7.4 Economies and diseconomies of scale

8. Differentiate market structures

  1. 8.1 Meaning of terms
  2. 8.2 Necessary and sufficient conditions for profit maximisation
  3. 8.3 Mathematical approach to profit maximisation
  4. 8.4 Output, prices and efficiency of: perfect competition, monopoly, monopolistic competition, oligopolistic competition

9. Determine national income

  1. 9.1 Meaning of terms
  2. 9.2 Concepts of national income: gross domestic product (GDP), gross national product (GNP) and net national product (NNP), net national income (NNI) at market price and factor cost, disposable income
  3. 9.3 Approaches to measuring national income
  4. 9.4 Importance of national income
  5. 9.5 Circular flow of income
  6. 9.6 Problems of measurement; uses of national income statistics and their
  7. 9.7 Limitations
  8. 9.8 Analysis of consumption, saving and investment and their interaction in a
  9. 9.9 simple economic model
  10. 9.10 Determination of equilibrium national income
  11. 9.11 Inflationary and deflationary gaps
  12. 9.12 The multiplier and accelerator concepts
  13. 9.13 Business cycles/cyclical fluctuations
  14. 9.14 The differences between economic growth and economic development
  15. 9.15 The benefits of economic growth
  16. 9.16 Determinants of economic development
  17. 9.17 Common characteristics of developing countries
  18. 9.18 Role of agriculture and industry in economic development
  19. 9.19 Obstacles to economic development
  20. 9.20 The need for development planning
  21. 9.21 Limitation of planning in developing countries

10. Demonstrate Understanding of money and banking

  1. 10.1 Meaning of terms
  2. 10.2 Characteristics of money
  3. 10.3 Functions of money
  4. 10.4 Demand and supply of money
  5. 10.5 Meaning of banking
  6. 10.6 Functions of central bank
  7. 10.7 Functions of commercial banks
  8. 10.8 Non-banking financial institutions

11. Demonstrate Understanding of Inflation and unemployment

  1. 11.1 Meaning of terms
  2. 11.2 Types of inflation
  3. 11.3 Causes of inflation: Cost push and demand pull
  4. 11.4 Effects of inflation
  5. 11.5 Measures to control inflation
  6. 11.6 Types and causes of unemployment
  7. 11.7 Control measures of unemployment
  8. 11.8 Relationship between unemployment and inflation: the Phillips curve

12. Demonstrate understanding of international trade

  1. 12.1 Meaning of terms
  2. 12.2 Advantages and disadvantages of international trade
  3. 12.3 Theories of absolute and comparative advantage
  4. 12.4 Terms of trade, balance of trade and balance of payments
  5. 12.5 Barriers to international trade
  6. 12.6 Exchange rates systems
  7. 12.7 Economic integration
  8. 12.8 International financial institutions: IMF, World bank, World Trade Organization
  9. 12.9 Emerging issues in economics

Revise this unit

Exam-style questions 168 Written to CDACC standard, with answers Test yourself 281 Multiple-choice, one at a time Practise questions 213 Quick recall — check you know the facts
3 more for this unit
Oral exam preparation 71 What the assessor asks, and how to answer out loud Worked calculations 41 Step-by-step maths with the common mistakes Quick cards 1,393 Myth busters, skill tips and scenarios

Beyond the syllabus

Decision simulator 7 On site, what would you do? Workplace scenarios 121 Real site situations — what would you do? Turn this into income 48 Where this skill earns — what to charge, how to find clients

Other units in Module I