Course Description

Dear Learners, Welcome to Grade 11 Economics Module One!

This module for Grade 11 students is designed to provide you with a foundational understanding of economic principles as outlined in the Grade 11 Economics Ethiopian National curriculum. The module aims not only to prepare you for your academic assessments but also to develop essential analytical skills that will support your future endeavors as informed citizens and contributors to Ethiopia’s economy.

Structured into four units, the module begins with an introduction to the basic concepts of economics in Unit One. You will explore the distinction between microeconomics and macroeconomics, gaining insights into key economic indicators such as supply and demand, price determination, consumer behavior, and production processes. Additionally, you will examine the roles of different economic agents, including households, firms, and the government, and their interactions within the economy.

Unit Two delves into the concept of market structures. You will learn about various market forms, including perfect competition, monopolistic competition, oligopoly, and monopoly. Through this unit, you will analyze how these structures influence pricing, output decisions, and consumer welfare. By understanding the characteristics and behaviors of different market structures, you will develop a clearer perspective on competitive practices and market efficiency.

In Unit Three, the module addresses the role of government in the economy. You will investigate the importance of government intervention in markets, exploring concepts such as taxation, subsidies, and regulation. Additionally, you will discuss public goods and services, the impact of externalities, and how government policies can promote economic welfare and address market failures. Through case studies relevant to Ethiopia, you will apply theoretical concepts to real-world situations, enhancing your understanding of the practical implications of economic policies.

The final unit, Unit Four, focuses on international economics. You will examine the principles of trade, the balance of payments, and the effects of globalization on the Ethiopian economy. This unit will also introduce you to exchange rates, trade policies, and the significance of international organizations in shaping economic relations. By the end of this module, you will gain a comprehensive understanding of how international dynamics influence domestic economic conditions.

Overall, the module emphasizes the practical application of economic theories to Ethiopian contexts, fostering critical thinking and analytical skills necessary for informed decision-making. By integrating local examples and practical applications, the module prepares you not only for academic success but also empowers you to contribute meaningfully to Ethiopia’s economic development in the future.

Course Objectives:

Dear Learners, at the end of successful completion of the study of this module, you will be able to:

• Differentiate between cardinal and ordinal utility approaches.
• Define the concepts of indifference set, curve, and map, as well as the theory of ordinal utility.
• Determine the optimum choice of the consumer using the ordinal utility approach.
• Analyze how firms maximize their profits in different market structures.
• State how perfectly competitive, pure monopoly, oligopoly, and monopolistically competitive markets maximize their profits.
• Define national income accounts and explain their importance.
• Appreciate the significance of national income accounts.
• Understand and compute the different approaches used to measure GDP.
• Analyze the differences between nominal and real GDP.
• Understand and compute the GDP deflator and the Consumer Price Index.
• Analyze the relationship between consumption, saving, and investment.
• Compute average and marginal propensity to consume and save.
• Evaluate the role of investment in economic growth.

Course Contents

Unit One: Theory of Consumer Behaviour and Demand

• Lesson One: Review of the Cardinal Utility Approach
• Lesson Two: The Ordinal Utility Theory and Preferences
• Lesson Three: The Budget Line or the Price Line
• Lesson Four: Optimum of the Consumer

Unit Two: Market Structure and the Decision of Firms

• Lesson One: Review of Market Structures
• Lesson Two: Perfect Competition Market
• Lesson Three: Pure Monopoly Market
• Lesson Four: Monopolistic Competition Market
• Lesson Five: Oligopoly Market

Unit Three: National Income Accounting

• Lesson One: Nature of National Income Accounts and Its Importance
• Lesson Two: The Concept of Gross Domestic Product (GDP) and Gross National Product (GNP)
• Lesson Three: Approaches to Measuring National Income (GDP/GNP)
• Lesson Four: Problems with GDP Measurement
• Lesson Five: The GDP Deflator and the Consumer Price Index
• Lesson Six: Other Measures of National Income Accounts
• Lesson Seven: GDP and Income Distribution

Unit Four: Consumption, Saving, and Investment

• Lesson One: Consumption
• Lesson Two: Saving
• Lesson Three: The Relationship between Saving and Consumption
• Lesson Four: Investment

Assessment Methods

• Engagement (brainstorming questions)
• Activity questions
• Quizzes
• Model Exams

Reference Materials

• Grade 10Economics Student Text Book Based On New Curriculum
• Grade 11 Economics Textbooks

• Samuelson, P. A., & Nordhaus, W. D. (2020). Economics. McGraw-Hill Education.
• Mankiw, N. G. (2021). Principles of Economics. Cengage Learning.
• Pindyck, R. S., & Rubinfeld, D. L. (2018). Microeconomics.
• Pearson. Rosen, H. S., & Gayer, T. (2020). Public Finance. McGraw-Hill Education.
• Krugman, P., & Obstfeld, M. (2020). International Economics: Theory and Policy.
• Pearson. Stiglitz, J. E. (2002). Globalization and Its Discontents. W.W. Norton & Company.
• World Bank. (2023). Ethiopia Economic Update.
• International Monetary Fund. (2023). Ethiopia: Staff Country Reports.
• African Development Bank. (2022). Ethiopia Economic Outlook.
• OECD. (2023). Economic Policy Reforms: Going for Growth.