Economics

Human Resource Management · Level 6  ·  10 Chapters

Compiled by: Joseph Opiyo

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What Economics covers

In this unit, you will be able to confidently apply key economic concepts and methodologies to real-world organizational challenges, making informed decisions that drive efficient resource use and economic success. You’ll master analyzing market dynamics, international trade, and consumer behavior to help businesses thrive in a competitive global environment. By the end, you’ll be equipped to develop effective economic systems and strategies that meet both local and international demands with clarity and precision.

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Careers after Economics

Understanding economics isn’t just about numbers - it’s the backbone of strategic HR decisions that keep Kenyan businesses thriving. Whether you join a bustling manufacturing hub in Nakuru, a fast-growing tech start-up in Nairobi, or launch your own consultancy, the skills you master in this unit will help you translate economic insight into real-world impact.

  • Human-resource planning units in large manufacturing firms (e.g., textile mills in Eldoret) - you analyse market demand and supply trends to forecast labour needs, calculate output units from available resources, and design staffing schedules that match production stages, earning a salary as a workforce analyst or production-HR coordinator.
  • Compensation and benefits teams in export-oriented agribusinesses (e.g., tea factories in Kericho) - you apply international trade concepts and balance-of-payments analysis to benchmark wages against global standards, ensuring competitive pay that attracts skilled workers and boosts export profitability.
  • Strategic HR departments in tourism resorts along the Kenyan coast (e.g., hotels in Mombasa and Diani) - you use elasticity of demand and consumer behaviour insights to adjust seasonal staffing levels, aligning employee deployment with fluctuating tourist arrivals and maximizing revenue per guest.
  • Policy-research units within county governments (e.g., County Public Service Offices in Kisumu) - you identify key economic concepts and select appropriate methodologies to evaluate public-sector labour programmes, helping officials allocate budgets efficiently and earn a civil-service analyst position.
  • HR consultancy firms serving SMEs in Nairobi’s industrial parks - you develop customised economic systems for client organisations, determining the scope of economic resources and factor mobility to advise on cost-effective recruitment and training plans, generating income through project-based fees.
  • Market-research teams in fast-moving consumer goods (FMCG) companies operating in Nairobi and Nakuru - you derive demand- and supply-curves, analyse consumer utility and equilibrium, and apply indifference-curve techniques to shape employee incentive schemes that reflect product pricing strategies, earning commissions or performance bonuses.
  • Supply-chain and procurement units in logistics companies (e.g., freight hubs in Mombasa and Malindi) - you utilise resource-efficiency principles to optimise inventory staffing, calculate output based on available transport assets, and assess long-run production periods, receiving a salary as a logistics-HR specialist.
  • Entrepreneurial HR advisory services for informal-sector cooperatives (e.g., dairy co-ops in Nyeri) - you guide cooperative leaders on factor-mobility decisions, market-demand analysis, and elasticity to structure fair wage systems that sustain member livelihoods, earning income from consulting retainers and training workshops.

Your grasp of economics will empower you to turn data into decisive HR strategies that drive growth across Kenya’s diverse industries. Keep sharpening these tools - you’re already on the path to becoming the economic engine behind thriving workplaces.

Chapters

What Economics covers: 52 main topics in 10 chapters

1. Apply fundamental of economic concepts

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

2. Apply demand concept in market analysis

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

3. Apply consumer behaviour 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 Factors of production and their rewards
  2. 4.2 Mobility of factors of production
  3. 4.3 Stages of production
  4. 4.4 Direct and Indirect Production
  5. 4.5 Merits and demerits of direct and indirect production
  6. 4.6 Division of labour and specialization
  7. 4.7 Long run and short run production period

5. Apply Cost Theory

  1. 5.1 Classification of production costs
  2. 5.2 Short run costs analysis
  3. 5.3 Optimal size of the firm

6. Differentiate Market Structures

  1. 6.1 Meaning of the term market
  2. 6.2 Types of market structures and their characteristics
  3. 6.3 Price and output determination in the long run and in the short run

7. Determine national income

  1. 7.1 Concept of national income
  2. 7.2 Methods used to measure national income
  3. 7.3 Income approach
  4. 7.4 Output approach
  5. 7.5 Expenditure approach
  6. 7.6 Problems of national income
  7. 7.7 Importance of national income statistics
  8. 7.8 National income equilibrium

8. Understand money and banking

  1. 8.1 Definition of terms
  2. 8.2 Characteristics of money
  3. 8.3 Functions of money
  4. 8.4 Functions of commercial banks
  5. 8.5 Function of central bank
  6. 8.6 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 Meaning of unemployment
  6. 9.6 Types of unemployment
  7. 9.7 Causes of unemployment
  8. 9.8 Measures to control unemployment

10. Understand international trade

  1. 10.1 Concept of international trade
  2. 10.2 International balance of payments
  3. 10.3 International balance of trade
  4. 10.4 International terms of trade

Revise this unit

3 more for this unit

Beyond the syllabus

Other units in Module V