11th Grade 4th QTR Economics Notes 1.docx

11^th^ Grade 4^th^ Quarter Economics Notes Topic: Economic Systems Definition: Economic system refers to the way in which the available productive resource in the state or nation are owned, managed or utilized for the satisfaction of human wants. Regardless of the economic system practiced every...

11^th^ Grade 4^th^ Quarter Economics Notes Topic: Economic Systems Definition: Economic system refers to the way in which the available productive resource in the state or nation are owned, managed or utilized for the satisfaction of human wants. Regardless of the economic system practiced every state or nation faces the basic economic problems of society. These problems include what to produce, how to produce, for whom to produce and efficiency use of resources. Society takes decisions on issues relating to the basic economic problems. In other words, it is the ownership or the means of production (whether private or public), how the choice is made and by whom that determines the types of economic system. Types of economic System The major types of economic systems include capitalism or free market Economy, socialism or centrally planned controlled economy and mixed economy. Capitalism or free market economy Definition: Capitalism or free market economy can be defined as the types of economic system in which the means of production are owned and controlled by private individuals. Features of Capitalism 1. Private ownership of properties 2. Existence of competition 3. Maximization of profits 4. Exercise of individual initiative Advantages of Capitalism 1. Free enterprise 2. It encourages hard work 3. It heads to specialization 4. It encourages economic competition 5. It ensures self-relation and reliance etc. Disadvantages of capitalism 1. It crates monopoly 2. It leads to economic inequal 3. Few individuals are enriched 4. It leads to exploitation 5. It increases crime rate, etc. Socialism Definition: Socialism, also called centrally planned controlled economic system, is defined as the type of system in which the means of production and distribution are collectively owned and controlled by the state (the government). Features of Socialism 1. Joint decision making 2. State ownership of means of production 3. Nonprofit motive 4. Promotion of welfare 5. Equitable distribution of income etc. Advantage of Socialism 1. Equitable distribution of resource 2. Absence of exploitation 3. Centrally planned market 4. Choice of production 5. Employment opportunity etc. Disadvantage of socialism 1. Absence of alternative choice 2. It reduces individual initiative 3. It slows down economic development 4. Lack of specialization 5. Absence of competition Mixed Economy Definition: Mixed economy may be defined as the types of economic system in which both the private and public ownership of means of production are distribution exist tother in a country. Features of mixed Economic System 1. Joint participation 2. Joint decision 3. Freedom of choice 4. Checks and balance 5. Economic Freedom Advantages Mixed Economy 1. It encourage private initiative 2. There is free of choice 3. Combines the good qualities of Capitalism and Socialism 4. Equitable distribution of income 5. It ensures economic development Disadvantages of Mixed Economy 1. Inequality of wealth 2. Lack of efficiency 3. Competition and mismanagement 4. Exploitation of labor Questions: Answer the below questions 1. State and explain the basic economic problems of the society 2. What do you understand by efficiency of resources use? 3. a). what is an economic system? 4. Account for three advantages each of both capitalist and socialist economy. Topic Agriculture Definition: Agriculture is simply defined as the production of crops and rearing of animals for mans use. In other words, agriculture is the deliberate effort made by man to till the soil; cultivate crops and rearing animals for food and other purpose. Agriculture is one of the most important sectors of the economy of many West African Countries. It employs about 60 -- 70 percent of the population in West African Countries. Component of Agriculture Agriculture has many component or branches. The most important component are: 1. Crop Production: This is the branch of agriculture which is concerned manly with the cultivation crop. Crop production is grouped into two major categories: Food Crops and Cash Crops. - Food Crops are cultivated to provide food for the population or mainly for consumption. - Vice - Maize - Groundnut - Vegetables - Yam, - Cassava etc. - Cash Crop on the other hand is cultivated main for sale. In other words, Cash Crops are produce basically for exports to earn income or foreign exchange for the economy and for industrial uses. - Cocoa - Orange - Rubber - Cotton - Oil Palm 2. Livestock Farming: Livestock Farming involves the rearing of animals either for consumption or for sale. Livestock are Cattle, Sheep, Goat, Donkey, and poultry, Rabbit, Snail and Grasscutters. These animals are reared for many purposes' meat for cash etc. 3. Forestry: Forestry is the art of planting; tending and managing forests including the utilization of their products; most of the trees found in the forest are growing naturally or planted for specific purpose. Forestry is important for the provision of the fuel medicinal herbs, employment, wide life, foreign exchange, and timber. 4. Fish farming: Fish farming is the act of reaving selected species of fish under scientifically controlled conditions is entire bodies of water such as ponds, streams ocean, etc. where they feed, grow, bred air and harvested for consumption or for sale 1. Peasant farming: peasant farming also referred to as subsistence farming is defined as the type of agriculture which is concerned with the production of food for the farmers his family. In other words, it is a system farming where by a farmer cultivates crops rears animals in order to produce food for use himself and his family only. Characteristics of peasant farming i. It requires small are of farm land. ii. Family labor is usually employed iii. The yield obtained from such small farm is use low. iv. Crude implement like cutlass, hoe etc. are usually employed. v. Food crops like vice, cassava, yam and maize are mainly grown. 2. Plantation Farming: Plantation Farming involves the cultivation of some economic crops in low areas of land. In this type of farming only crop (monoculture) is grow in a large area. i. It requires a large area of land ii. It requires huge capital investment iii. Only one crop is cultivated iv. It requires the use of machines like trade plough etc. v. Output or yield is mainly for sale 3. Mechanized Farming: Mechanized Farming a referred to as commercial agriculture, is the of agriculture which is concerned with the food, animals and cash crops in large quantality mainly for sale. A version of mechanized farming is the state farming. The state farming is a system of agriculture in which the state through its agencies engages in large scale farming for both local and foreign markets. Characteristics of mechanized farming i. It requires a large area of land. ii. Comple and modern equipment are used. iii. It requires huge capital investment. iv. It requires special marcotting strategies. v. Pest and diseases are usually controlled. 4. Co-operative farming: this is the type of farming in which farmers cone together to form a union for the purpose of farming together to enable them enjoy some incentives from government. Characteristics of co-operative farming i. It is a union of farmers ii. They may produce one type of cop or livestock iii. They enjoy certain incentives from government iv. It has organized markets for their produce v. Output is high because of resources put together by farmers. Importance or contribution of agriculture To economic development of west African 1. Provision of food 2. Provision 8 materials for clothing 3. Employment for the working population 4. Generation of income 5. Source of foreign exchange