Republic of Namibia

MINISTRY OF EDUCATION, ARTS AND CULTURE

NAMIBIA SENIOR SECONDARY CERTIFICATE (NSSC)

ECONOMICS SYLLABUS
ORDINARY LEVEL
SYLLABUS CODE: 6145
GRADES 10 - 11

FOR IMPLEMENTATION IN 2019

FOR FIRST EXAMINATION IN 2020
Ministry of Education, Arts and Culture
National Institute for Educational Development (NIED)
Private Bag 2034
Okahandja
Namibia

© Copyright NIED, Ministry of Education, Arts and Culture 2018

Economics Syllabus Ordinary Level Grades 10 - 11

ISBN: 978-99916-66-28-0

Printed by NIED

Publication date: 2018

 TABLE OF CONTENTS

1. Introduction ..................................................................................................................... 1

2. Rationale ........................................................................................................................ 1

3. Aims ............................................................................................................................... 2

4. Additional information ..................................................................................................... 2

5. Learning content ............................................................................................................. 3

6. Assessment objectives ................................................................................................. 13

7. Scheme of assessment ................................................................................................ 14

8. Specification grid .......................................................................................................... 15

9. Grade descriptions ....................................................................................................... 16

10. Command words .......................................................................................................... 18

11. Glossary....................................................................................................................... 19
1. INTRODUCTION

The Namibia Senior Secondary Certificate (NSSC) Ordinary Level is designed as a two-year
course for examination after completion of the Junior Secondary Certificate. The syllabus is
designed to meet the requirements of the National Curriculum for Basic Education (NCBE)
and has been approved by the National Examination, Assessment and Certification Board
(NEACB).

The National Curriculum Guidelines, applicable at the stage of Senior Secondary Education (Grades
10-12) and at equivalent stages of non-formal education, as a part of life-long learning, recognise the
uniqueness of the learner and adhere to the philosophy of learner-centred education.

The Namibia National Curriculum Guidelines:

 recognise that learning involves developing values and attitudes as well as knowledge
and skills
 promotes self-awareness and an understanding of the attitudes, values and beliefs of
others in a multilingual and a multicultural society
 encourage respect for human rights and freedom of speech
 provide insight and understanding of crucial “global” issues in a rapidly changing world
which affect quality of life: the AIDS pandemic, global warming, environmental
degradation, maldistribution of wealth, expanding and increasing conflicts, the
technological explosion and increased connectivity
 recognise that, as information in its various forms becomes more accessible, learners
need to develop higher cognitive skills of analysis, interpretation and evaluation to use
information effectively
 seek to challenge and to motivate learners to reach their full potential and to contribute
positively to the environment, economy and society

Thus the Namibia National Curriculum Guidelines provide opportunities for developing
essential, key skills across the various fields of study. Such skills cannot be developed in
isolation and may differ from context to context according to the field of study.

Economics contributes directly to the development of the 8 skills marked*:

 Communication skills*
 Numeracy skills*
 Information skills*
 Problem-solving skills*
 Self-management and Competitive skills*
 Social and Co-operative skills*
 Physical skills
 Work and study skills*
 Critical and creative thinking skills*

2. RATIONALE

Economics is the participation in the social, civic, political, economic, cultural and natural
environment and is central to this area of learning. It includes understanding and
interpreting past and present human behaviour and experience; and how they influence
events, circumstances and the environment.

NSSCO Economics syllabus, NIED 2018

1
3. AIMS

The aims of the syllabus are the same for all learners. These are set out below and describe
the educational purposes of a course in Economics for the NSSCO examinations. They are
not listed in order of priority.

The aims are to enable learners to:

 develop a sound knowledge and understanding of economic terminology and

principles and elementary economic theory

 develop basic economic numeracy and literacy and the ability to handle simple data
including graphs and diagrams

 use the tools of economic analysis in particular situations

 identify and discriminate between differing sources of information; and to distinguish

between facts and value judgements in economic issues

 employ economic skills, with reference to individuals, groups and organisations in

order to better understand the world in which they live

 participate more fully in decision-making processes, as consumers and producers and

as citizens of the local, national and international community

 develop an understanding of the economies of developed and developing nations and

of the relationships between them; and to appreciate these relationships from the
perspective of both developed and developing nations

 acquire knowledge and understanding of how different economic systems affect

natural resources and environmental quality; the need for government control on the
use of natural resources; and the economic implication of HIV and AIDS

4. ADDITIONAL INFORMATION

4.1 Guided learning hours

The NSSCO level syllabuses are designed on the assumption that learners have about 130 guided
learning hours per subject over the duration of two years, but this is for guidance only. The number of
hours required to gain the qualification may vary according to local conditions and the learners’ prior
experience of the subject. The National Curriculum for Basic Education (NCBE) indicates that this
subject will be taught for 8 periods of 40 minutes each per 7-day cycle, or 6 periods of 40 minutes
each per 5-day cycle, over two years.

4.2 Prior learning

Learners beginning this course are not expected to have studied Economics previously.

4.3 Progression

NSSCO levels are general qualifications that enable learners to progress either directly to
employment, or to proceed to further qualifications. Learners who are awarded grades C to A* in
NSSCO are well prepared to follow courses leading to Namibia Senior Secondary Certificate
Advanced Subsidiary (NSCCAS) level Economics.

NSSCO Economics syllabus, NIED 2018

2
4.4 Support materials and approved textbooks

NSSCO syllabuses, question papers, examiner reports and assessment manuals in subjects, where
applicable, are sent to all schools. Approved learning support materials are available on the Senior
Secondary Textbook Catalogue for Schools.

5. LEARNING CONTENT

The content is divided into nine themes and these are:

1. What is Economics?

2. Nature and functions of organisations and financial institutions

3. The market

4. Occupation, income and expenditure of individuals

5. Production

6. Role of Government in an economy

7. Main economic indicators

8. Developed and developing economies

9. Conflicts of interest

NSSCO Economics syllabus, NIED 2018

3
THEME 1: WHAT IS ECONOMICS?

TOPIC GENERAL OBJECTIVES SPECIFIC OBJECTIVES

Learners will: Learners should be able to:
1.1 Basic economic problem:  understand the nature of the economic  describe the nature of the economic problem (limited
scarcity and exercise of problem resources and unlimited wants)
choice  explain and illustrate opportunity cost
 evaluate the implications of specific courses of action in
terms of opportunity cost
1.2 Types of economic systems  demonstrate understanding of economic  describe the factors of production (land, labour, capital,
and economic resources resources in different economic systems entrepreneurship)
 explain allocation of resources in market, planned and
mixed economic systems
 evaluate the merits and effectiveness of different
economic systems
1.3 Specialisation and division  appreciate the importance of specialisation  explain the meaning of specialisation and the division of
of labour and the division of labour labour
 analyse the advantages and disadvantages of
specialisation and the division of labour
 discuss the various levels of specialisation (individual,
regional, national)

NSSCO Economics syllabus, NIED 2018

4
THEME 2: NATURE AND FUNCTIONS OF ORGANISATIONS AND FINANCIAL INSTITUTIONS

TOPIC GENERAL OBJECTIVES SPECIFIC OBJECTIVES

Learners will: Learners should be able to:
2.1 Business organisations  understand the different forms of business  explain the differences between the private and public
organisations in the public and private sector sector
 describe the different forms of business organisations:
sole proprietors, partnerships, private companies, public
companies, multi-nationals, co-operatives, close
corporations, public corporations
 compare and choose the most appropriate form of
business
2.2 Trade unions and employer  know and understand the role of trade unions  define a trade union
association in business organisations and the economy  identify the aims of trade unions
 describe the advantages of joining a trade union
 describe the types of trade unions in Namibia (e.g.
white collar, blue collar, craft unions)
 discuss the factors affecting trade union activities in
Namibia
 explain and evaluate the role of trade unions
 explain the role of employer association
2.3 Financial institutions  demonstrate an understanding of the  explain the need for exchange
importance and activities of financial  explain the functions, quality and types of money
institutions  define and calculate exchange rate
 discuss the effects of fluctuating exchange rates on the
economy
 describe and evaluate the functions of central banks,
stock exchanges and commercial banks

NSSCO Economics syllabus, NIED 2018

5
THEME 3: THE MARKET

TOPIC GENERAL OBJECTIVES SPECIFIC OBJECTIVES

Learners will: Learners should be able to:
3.1 What is a market?  demonstrate an understanding of the role of a  explain a market
market  explain different types of markets
3.2 Market forces  understand the principles of demand and  define and illustrate demand and supply
supply  discuss and illustrate the principle of equilibrium price
 analyse simple market situations with changes in supply
and demand
 discuss the causes of changes in demand and supply
conditions
 analyse such changes to show effects on price
3.3 Price elasticity  understand the concept of price elasticity  define price elasticity of demand and supply
 discuss and apply price elasticity of demand and supply
 perform simple calculations of elasticity and inelasticity
of demand and supply
3.4 Advertising  demonstrate an understanding of the role of  define advertising
advertising  describe the purpose and methods of advertising
3.5 Policies  understand the importance of pricing and  discuss and evaluate pricing and output policies in
output policies in business perfect competition and monopoly

NSSCO Economics syllabus, NIED 2018

6
THEME 4: OCCUPATION, INCOME AND EXPENDITURE OF INDIVIDUALS

TOPIC GENERAL OBJECTIVES SPECIFIC OBJECTIVES

Learners will: Learners should be able to:
4.1 Occupational choices  acquire knowledge of factors affecting choice  differentiate between and discuss wage and non-wage
of occupation factors affecting an individual’s choice of occupation
4.2 Earnings  demonstrate an understanding of the factors  identify and analyse the factors determining earnings
determining earnings  describe and explain the differences in earnings
between different occupational groups and different
economic sectors (male/female; skilled/unskilled;
private/public; agricultural/manufacturing/ services)
 analyse and discuss changes in earnings over time
between occupations and between economic sectors
 explain economic rent and transfer earnings
4.3 Expenditure  acquire knowledge of spending, saving and  describe how and why different income groups have
borrowing different expenditure patterns (spending, saving,
borrowing)
 analyse the different motives for spending, saving and
borrowing
 analyse and discuss changes in patterns of expenditure
between groups and over a period of time

NSSCO Economics syllabus, NIED 2018

7
THEME 5: PRODUCTION

TOPIC GENERAL OBJECTIVES SPECIFIC OBJECTIVES

Learners will: Learners should be able to:
5.1 The private firm as producer  be familiar with the aims of firms  describe and analyse the principle of profit
and employer maximisation as a goal
 demonstrate understanding of production  define production
 describe what determines the demand for factors of
production
 analyse particular situations to show the effects of
substituting one factor for another
5.2 Productivity  be familiar with the importance of productivity  explain the meaning of productivity
as a way of measuring performance  show how productivity is measured
 discuss how productivity can be improved
 explain the effect of Information Technology on
productivity
 discuss the effects of HIV and AIDS on productivity
5.3 Production costs and  acquire knowledge and skill in determining the  define total, average, fixed and variable costs
revenue costs of and revenue from production  define total and average revenue
 discuss how costs and revenue might change as output
changes
 explain the effect of changes in technology on
production
5.4 Economies and  demonstrate an understanding of integration,  define and identify the different types of integration
diseconomies of scale economies and diseconomies of scale  explain and illustrate the various economies of scale
 explain and illustrate the various diseconomies of scale
 discuss how the economies and diseconomies of scale
affect business costs
 discuss the main reasons for the different sizes of firms
(size of market; capital; organisation), and the different
factors that influence the size of a firm

NSSCO Economics syllabus, NIED 2018

8
THEME 6: ROLE OF GOVERNMENT IN AN ECONOMY

TOPIC GENERAL OBJECTIVES SPECIFIC OBJECTIVES

Learners will: Learners should be able to:
6. 1 Government as producer  understand the role of government in  describe the government as a producer of goods and
and employer production services and as an employer
6.2 Government economic  demonstrate an understanding of the  define government economic policy
policies economic policies of the government  discuss the aims of government policy and why they
should be achieved
- full employment
- prevention of inflation
- economic growth
- redistribution of income
- balance of payments stability
 explain fiscal and monetary policies of the government
 describe the different types of taxes
 discuss how taxes are used by the government to
influence business activities and the role of the budget
 describe how the government can use the interest rate
to influence business activity
6.3 Government control  acquire knowledge and understanding of the  explain the reasons for government’s intervention in
need for the control of business activity by the business
government  explain how the government controls production of
goods and services
 discuss how consumers are protected in Namibia
 discuss how employees are protected by the State
 discuss how the government can protect people with
HIV and AIDS at the workplace

NSSCO Economics syllabus, NIED 2018

9
THEME 7: MAIN ECONOMIC INDICATORS

TOPIC GENERAL OBJECTIVES SPECIFIC OBJECTIVES

Learners will: Learners should be able to:
7.1 Prices  acquire knowledge and understanding of the  define retail price index and show its simple calculation
importance of economic indicators in an  describe different types of inflation
economy (recent changes and current trends)  discuss the consequences of inflation
7.2 Employment  acquire knowledge of aspects relating to  describe and discuss the changing patterns and levels
employment and unemployment of employment
 investigate the reasons for unemployment
 investigate the consequences of unemployment
 investigate remedies to unemployment
7.3 Output  acquire knowledge on how to measure output  define Gross Domestic Product, Gross National Product
and the reasons for measuring output and National Income
 describe the different methods of calculating the
national income
 explain reasons for measuring the national income
7.4 International trade  acquire knowledge of the importance of  describe the changing patterns of exports and imports
international trade and the effects on the balance of payments
 discuss exchange rates and give reasons for their
fluctuations
 demonstrate the simple application of absolute and
comparative advantage in trade

NSSCO Economics syllabus, NIED 2018

10
THEME 8: DEVELOPED AND DEVELOPING ECONOMIES

TOPIC GENERAL OBJECTIVES SPECIFIC OBJECTIVES

Learners will: Learners should be able to:
8.1 Population  acquire knowledge and understanding relating  describe developed and developing economies and
to population reasons for different stages of development
 discuss problems and consequences for developing
countries as they develop
 describe the factors that affect population growth (birth
rate, death rate, fertility rate, net migration) and reasons
for rates of growth in Namibia and other countries
 discuss the effects of changing size and structure of
population on an economy
8.2 Living standards  understand the effect of economic activity on  describe simple measures and indicators of
living standards comparative living standards
 describe differences in living standards and discuss
reasons for disparities within nations and between
nations, both developed and developing countries
 explain the effect of Information Technology on living
standards

NSSCO Economics syllabus, NIED 2018

11
THEME 9: CONFLICTS OF INTEREST

TOPIC GENERAL OBJECTIVES SPECIFIC OBJECTIVES

Learners will: Learners should be able to:
9.1 Conflicts  demonstrate an understanding of possible  discuss conflicts of interest in relation to:
conflicts between the aims of individuals, firms - social costs* and benefits, private costs and
and government benefits
- short/long term costs and benefits
- conserving resources versus exploiting resources
- free trade versus protection
- public expenditure versus private expenditure

*Social costs are equal to the sum of private costs and external costs

NSSCO Economics syllabus, NIED 2018

12
6. ASSESSMENT OBJECTIVES

The three assessment objectives in Economics are:

A Knowledge with understanding

B Application and analysis
C Evaluation and decision making

A description of each assessment objective follows:

A Knowledge with understanding

Learners should be able to demonstrate their knowledge and understanding in relation to:
1. economic phenomena, facts, definitions, concepts principles and theories
2. economic vocabulary, terminology and conventions

(Questions testing these objectives will often begin with command words such as: define,
describe, list, outline, state, identify.)

B Application and analysis

Learners should be able to:

1. use economic data, to recognise patterns in such data, and to deduce relationships
2. select, organise and interpret data
3. analyse economic knowledge and understanding in verbal, numerical, diagrammatic,
pictorial and graphical form
4. recognise that economic theory is subject to various limitations and uncertainties

(Questions testing these objectives will often contain command words such as: analyse,
calculate, comment, compare, contrast, explain.)

C Evaluation and decision making

Learners should be able to:

1. distinguish between evidence and opinion, make reasoned judgements and
communicate them in an accurate and logical manner
2. evaluate the social and environmental implications of particular courses of economic
action
3. make decisions and suggest proposals based on novel data that will be provided

(Questions testing these objectives will often contain command words such as: assess,
discuss, evaluate, justify.)

NSSCO Economics syllabus, NIED 2018

13
7. SCHEME OF ASSESSMENT

All learners will take Paper 1 and Paper 2.

Description of papers

Paper 1 2 hours 30 minutes 80 marks Weighting 50%

A paper containing short-answer questions and novel data for interpretation and questions
testing enquiry skills, divided into two sections. Learners will be required to answer all
questions in both sections.

Section A

Short-answer questions. (40 marks)

Questions in this section will be assessed by Assessment Objective A.

Section B

Learners will be asked to answer longer questions which will require interpretation and
analysis of real economic situations. Questions in this section will be assessed by
Assessment Objective B and C. (40 marks)

Paper 2 2 hours 80 marks Weighting 50%

A paper containing structured questions which will be presented for interpretation and
analysis of real economic situations. Questions in this paper will seek to cover the
assessment objectives A (Knowledge with understanding), B (Application and Analysis), and
C (Evaluation and Decision Making).

The paper is divided into two sections. Learners will be required to answer all questions in
Section A. In Section B learners will choose three out of five questions available.

Section A

Structured questions (20 marks)

Questions will include drawing and interpretation of diagrams.

Section B (contains optional questions)

Learners will be required to answer three structured essay questions (3 x 20 marks) from the
five questions available. (60 marks)

NSSCO Economics syllabus, NIED 2018

14
8. SPECIFICATION GRID

The relationship between the assessment objectives and components of the scheme of
assessment:

Assessment Objectives Paper 1 Paper 2

A Knowledge with understanding 50 % 28 %
B Application and Analysis 16 % 35 %
C Evaluation and Decision Making 34 % 37 %
Total marks 80 80
Weighting 50 % 50 %

NSSCO Economics syllabus, NIED 2018

15
9. GRADE DESCRIPTIONS

Grade descriptions are provided to give a general indication of the standards of achievement
likely to have been shown by learners awarded particular grades. The grade awarded will
depend in practice upon the extent to which the learner has met the assessment objectives
overall and it might conceal weakness in one aspect of the examination which is balanced by
above average performance in some other. Learners will be graded on a scale of A* - G.
The descriptors for judgemental thresholds (A, C, E and G) are given below.

A Grade A learner should demonstrate:

A Knowledge with understanding

1. An excellent ability to identify detailed facts and principles in relation to the content
of the syllabus.
2. An excellent ability to describe graphs, diagrams and tables.
3. An excellent ability to define the concepts of the syllabus.

B Application and Analysis

1. An excellent ability to apply and comment on economic information.
2. An excellent ability to apply this information in a logical and well-structured manner
to illustrate the application of a piece of economic analysis to a particular situation.
3. A sound ability to apply this information in a logical and well-structured manner to
illustrate the application of a piece of economic analysis to a particular situation.

C Evaluation
1. A sound ability to discriminate between more complex and varied information and
to distinguish clearly between facts and opinions.
2. A sound ability to form conclusions from information and data.
3. A sound ability to make clear, reasoned judgements and communicate them in an
accurate and logical manner.

A Grade C learner should demonstrate:

A Knowledge with understanding

1. A good ability to identify detailed facts and principles in relation to the content of
the syllabus.
2. A good ability to clearly describe graphs, diagrams, tables.
3. A good ability to define the concepts and ideas of the syllabus.

B Application and Analysis

1. An ability to apply and comment on information presented in non-verbal form.
2. An ability to apply this information to illustrate economic analysis to particular
situations.

C Evaluation
1. An ability to discriminate between complex information and to distinguish clearly
between facts and opinions.
2. An ability to draw conclusions and present these in a clear manner.
3. An ability to examine information in a logical manner.

NSSCO Economics syllabus, NIED 2018

16
A Grade E learner should demonstrate:

A Knowledge with understanding

1. Some ability to identify specific facts or principles in relation to the content of the
syllabus.
2. Some ability to describe graphs, diagrams, tables.
3. Some familiarity with the central concepts and ideas of the syllabus.

B Application and Analysis

1. Some ability to apply data in a simple way and to select relevant information from
a set of data.
2. Some ability to apply the tools of economic analysis to particular situations.

C Evaluation
1. Some ability to discriminate between different sources of information and to
describe the difference between facts and opinions.
2. Some ability to use given information to form conclusions.

A Grade G learner should demonstrate:

A Knowledge with understanding

1. A limited ability to identify specific facts or principles in relation to the content of
the syllabus.
2. A limited ability to describe graphs, diagrams, tables.
3. A limited familiarity with the central concepts and ideas of the syllabus.

B Application and Analysis

1. A limited ability to apply data in a simple way.
2. A rudimentary ability to apply and use the tools of economic analysis.

C Evaluation
1. A limited ability to discriminate and recognise the differences between facts and
opinions.
2. A rudimentary ability to use information to draw some basic conclusions.

NSSCO Economics syllabus, NIED 2018

17
 10. COMMAND WORDS

Command General definition

Analyse examine in detail to show meaning, identify elements and the relationship
between them
Calculate work out from given facts, figures or information

Define give precise meaning

Describe state the points of a topic / give characteristics and main features

Discuss write about issue(s) or topic(s) in depth in a structured way

Evaluate judge or calculate the quality, importance, amount, or value of something

Explain set out purposes or reasons / make the relationships between things evident /
provide why and/or how, and support with relevant evidence

Give produce an answer from a given source or recall/memory

Identify name/select/recognise

Justify support a case with evidence/argument

Outline set out main points

State express in clear terms

Suggest apply knowledge and understanding to situations where there are a range of
valid responses in order to make proposals / put forward considerations

NSSCO Economics syllabus, NIED 2018

18
11. GLOSSARY

Abnormal profits These profits are earned when a firm earns profits
greater than the profits which could be earned in
the best alternative business.

Analyse Examine in detail to show meaning, identify

elements and the relationship between them

Average cost (AC) The total costs (TC) divided by the total number of
units produced (Q).
The formula is: AC = TC ÷ Q

Average revenue (AR) The revenue per unit sold.

The formula is: AR = TR ÷ Q of units

Calculate Work out from given facts, figures or information.

Complementary good A good that is usually used together with another

good.

Cross elasticity The responsiveness of the change in the demand

for X to a change in the price of Y.

Define Give precise meaning.

Demand How much of a good will be bought at a particular

price. As the price of a good rises, the quantity
demanded will fall. As the price of a good falls, the
quantity demanded will rise.

Describe State the points of a topic / give characteristics and

main features

Discuss Write about issue(s) or topic(s) in depth in a

structured way.

Diseconomies of scale Increase of production/output leads to increase in

average cost of production.

Disposable income The amount which household has available for

spending and saving after tax and other
contributions subtracted/after deductions.

Division of labour Large tasks split into different tasks and each
worker/employee performs one
specific task/dividing the production process into
different stages and each worker focus on a specific
task.

Economies of scale Large-scale of production which lead to lower

average cost.

Elasticity How much the quantity demanded or supplied will

change when another factor, such as price or
income, changes.

NSSCO Economics syllabus, NIED 2018

19
Evaluate Judge or calculate the quality, importance, amount,
or value of something.

Explain Set out purposes or reasons / make the

relationships between things evident / provide why
and/or how, and support with relevant evidence.

Equilibrium Where supply is equal to demand.

Factors of production Land, labour, capital and enterprise.

Fixed costs Costs that remain the same no matter how much is
produced.

Give Produce an answer from a given source or

recall/memory.

Identify Name/select/recognise

Implicit costs The non-monetary costs of production.

Income elasticity of demand The sensitivity of the quantity of a good demanded

to changes in income.

Justify Support a case with evidence/argument.

Law of comparative advantage People should specialize in the production of goods

in which their opportunity cost is the lowest, and
trade these for other goods.

Law of diminishing returns When more of a variable factor of production is

added to fixed factors, the rate at which output
increases will eventually slow down.

Law of increasing opportunity cost As more of a particular factor of production is used,

the opportunity cost of that factor increases.

Long-run The period in which the firm can alter all its costs –
both its fixed costs and its variable costs.

Margin The imaginary line between the last unit produced

or consumed and the next unit which will be
produced or consumed.

Marginal benefit The benefit gained from the next unit produced or
consumed.

Marginal costs (MC) The additional costs incurred by producing each

additional unit of output.

Marginal revenue (MR) The revenue earned by selling an additional unit of

output.

Marginal revenue product (MRP) The extra output produced by a labourer multiplied
by the marginal revenue.

NSSCO Economics syllabus, NIED 2018

20
Normal profits The minimum profits an entrepreneur must earn in
order to keep him or her in the business instead of
some other business and is included in the total
cost.

Opportunity cost A benefit, profit, or value of something that must be

given up to acquire or achieve something else.

Outline Set out main points.

Piece rate Wage system in which the worker/employee is

paid for each unit of production/per output at a
fixed rate

Price elasticity of demand The sensitivity of the quantity of a good demanded

to changes in its price.

Price elasticity of supply The sensitivity of the quantity of output supplied by

firms to changes in the price of the product.

Production possibility frontier (PPF) Opportunity costs are often described using a PPF.
A PPF shows the total output of an economy
if all resources are fully used.

Profit Profit = total revenue (TR) – total costs (TC)

Profit maximisation Achieving the highest possible when the

business produces an output where marginal
cost is equal to marginal revenue

Short-run A period of time that a firm operates during which

some of its costs are fixed and others can be
varied.

State Express in clear terms.

Substitute goods Good that can be used in the place of another

goods.

Suggest Apply knowledge and understanding to situations

where there are a range of valid responses in order
to make proposals / put forward considerations.

Supply The amount of a good which firms will be willing to

produce at a particular price in a given period of
time. The Law of Supply states that:
As the price of a good rises, the quantity supplied
will rise. As the price of a good falls, the quantity
supplied will fall.

Stock exchange A market place for the buying and selling of

shares, debentures and government securities.

NSSCO Economics syllabus, NIED 2018

21
Total revenue (TR) The quantity of total sales (Q) multiplied by the
price (P) at which its goods or services are sold.

Trade union Association of workers formed for the purpose of

improving the pay and working conditions of their
members through collective bargaining with
employers

Variable costs These are costs which will change as output

changes.

NSSCO Economics syllabus, NIED 2018

22
The National Institute for Educational Development
P/Bag 2034
Okahandja
NAMIBIA

Telephone: +264 62 509000

Facsimile: +264 62 509073

E-mail: info@[Link]
Website: [Link]