Economics Skills

Business Management · Level 5  ·  10 Chapters

Compiled by: Susan Wanjohi

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What Economics Skills covers

In this unit, you will be able to confidently navigate key economic concepts and methodologies to analyze market dynamics, production costs, and resource allocation effectively. By mastering these skills, you will be equipped to develop sound economic systems, understand international trade, and make informed decisions that drive organizational success. This foundation will empower you to contribute meaningfully in real-world economic environments, turning theory into practical solutions that meet business and community needs.

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Careers after Economics Skills

In this unit you’ll turn the language of economics into a practical toolkit that Kenyan businesses, farms, tourism outfits, banks and development agencies rely on every day. Mastering these skills means you can help organisations decide what to produce, how much to charge, where to invest and how to grow sustainably - all while earning a solid income either as an employee or as an independent consultant.

  • County development planning offices in Kisumu or Nakuru - you apply economic concepts and the right methodology to draft local development strategies, allocate public resources, and measure impact, earning a salary as a planning officer or consultant.
  • Agribusiness cooperatives in western Kenya (e.g., tea, coffee, horticulture groups) - you determine the scope of resources, develop economic systems for collective marketing, and analyse demand-supply dynamics for export crops, earning commissions or a managerial wage.
  • Export processing zones in Mombasa and Athi River - you explain international trade principles, assess foreign market demand, and advise firms on pricing and logistics, earning as a trade analyst or freelance export consultant.
  • Tourism and hospitality firms on the coast (hotels, lodges, tour operators) - you study consumer behaviour, market structures and price elasticity to set room rates and package deals, earning as a revenue manager or pricing specialist.
  • Manufacturing plants in Kiambu and Nakuru (textiles, food processing, metal-working) - you classify production costs, analyse short-run and long-run cost curves, and determine the optimal firm size for economies of scale, earning as a cost accountant or production economist.
  • Micro-finance institutions serving informal traders in Nairobi’s Eastlands - you identify the functions and characteristics of money, evaluate different financial institutions, and design loan products that match clients’ cash-flow patterns, earning as a financial analyst or loan officer.
  • Commercial banks in Nairobi’s Central Business District - you explain the roles of central and commercial banks, assess liquidity needs, and support credit-risk assessments, earning as a banking officer or economic advisor.
  • Large retail chains in Nairobi, Eldoret and Kisumu - you determine market demand and supply, analyse consumer buying habits, and optimise inventory levels, earning as a merchandiser, supply-chain planner or store manager.
  • Energy firms developing geothermal and wind projects in the Rift Valley - you evaluate factor mobility, calculate national-income contributions, and model economies of scale for power generation, earning as an energy economist or project analyst.
  • NGO project-evaluation teams working in arid and semi-arid lands - you use economic methodology to assess project outcomes, allocate resources efficiently, and report impact to donors, earning as a project economist or consultant.
  • E-commerce platforms operating nationwide - you analyse market structures, cost curves and competitive pricing to set platform fees and promotional strategies, earning as a business strategist or data-driven analyst.
  • Policy research units within county governments - you identify components of national income, explain money functions, and advise on fiscal and monetary policies that affect local businesses, earning as a policy advisor or senior economist.

Your grasp of these economic tools will open doors across Kenya’s vibrant private, public and informal sectors - giving you the confidence to shape markets, drive growth, and build a rewarding career. Keep pushing forward; the economy needs thinkers like you!

Chapters

What Economics Skills covers: 46 main topics in 10 chapters

1. Apply fundamental economic concepts

  1. 1.1 Economic concepts
  2. 1.2 Economic methodology
  3. 1.3 Scope of economic resources
  4. 1.4 Economic systems
  5. 1.5 Effective resource utilization

2. Apply demand and Supply in market analysis

  1. 2.1 Market demand and supply dynamics
  2. 2.2 Factors affecting demand and supply
  3. 2.3 Demand and supply curves
  4. 2.4 Elasticity of demand and supply

3. Apply consumer behavior theory

  1. 3.1 Consumer behaviour approaches
  2. 3.2 Consumer utility
  3. 3.3 consumer equilibrium
  4. 3.4 Indifference curves

4. Apply production theory

  1. 4.1 Mobility of Factors of production and their rewards
  2. 4.2 Output units determination
  3. 4.3 Stages of production
  4. 4.4 Long run and short run production period
  5. 4.5 Direct and Indirect Production
  6. 4.6 Merits and demerits of direct and indirect production
  7. 4.7 Division of labour and specialization

5. Apply costs theory

  1. 5.1 Classification of production costs
  2. 5.2 short run costs analysis
  3. 5.3 long run costs analysis
  4. 5.4 Cost curves analysis
  5. 5.5 Optimal size of the firm

6. Differentiate market structures

  1. 6.1 Market structures determination
  2. 6.2 Market output
  3. 6.3 Market Prices
  4. 6.4 Market structures selection

7. Determine national income

  1. 7.1 Concept of national income
  2. 7.2 Methods used to measure national income
  3. 7.3 Problems of national income
  4. 7.4 Importance of national income statistics
  5. 7.5 National income equilibrium

8. Understand Money and Banking

  1. 8.1 Functions of money
  2. 8.2 Characteristics of money
  3. 8.3 Financial institutions
  4. 8.4 Functions of central bank and commercial bank
  5. 8.5 Functions of non-banking financial institutions

9. Determine Inflation and unemployment

  1. 9.1 Types of inflation
  2. 9.2 Causes of inflation
  3. 9.3 Effects of inflation
  4. 9.4 Measures to control inflation
  5. 9.5 Direct intervention

10. Understand International trade

  1. 10.1 Concept of international trade
  2. 10.2 International balance of payments

Revise this unit

3 more for this unit

Beyond the syllabus

Other units in Module II