Samoa School Syllabus - Economics Course Entries

Unit 1: Economics - The Basics

This unit introduces the fundamental concepts of economics. It explains that economics studies how individuals and organizations satisfy unlimited wants with limited resources, a situation known as scarcity. Scarcity necessitates choices, and every choice has an opportunity cost, which is the next best alternative forgone. The unit also differentiates between free goods (abundant resources like fresh air) and economic goods (scarce resources that command a price).

Unit 2: Business Structure

This unit explores different business structures and their implications. It covers the distinction between ownership and management, outlining the features of sole traders, partnerships, and companies. It also delves into centralized and decentralized management structures, providing examples of organizational charts for each. Finally, the unit discusses various financial arrangements suitable for business establishment and expansion, including internal and external sources of finance.

Unit 3: Service Industries

This unit examines the role of service industries in the economy and how they support businesses. It describes the features of transport, marketing, finance, accounting, and communications industries. The concept of interdependence between businesses and service industries is highlighted. The unit also explains price and non-price competition strategies, discussing their advantages and disadvantages for both consumers and producers.

Unit 4: Productivity

This unit defines and explains productivity, providing a formula for calculation (output/input). It discusses factors influencing productivity, including specialization, division of labor, technology, investment, economies of scale, and diseconomies of scale. The unit emphasizes the importance of maximizing output with available resources.

Unit 5: Non-Price Factors Affecting Supply

This unit explores factors beyond price that influence supply. It covers costs of production, prices of related products, producer goals, and the state of technology. The unit also examines environmental, legal, trade, and political influences on supply decisions. Finally, it defines market supply and demonstrates how to construct a market supply curve.

Unit 6: Non-Price Factors Affecting Demand

This unit examines factors other than price that affect demand. It covers consumer preferences, income, prices of substitute goods, and prices of complementary goods. The unit also defines market demand and shows how to construct a market demand curve.

Unit 7: Market Equilibrium

This unit explains market equilibrium using supply and demand models. It demonstrates how equilibrium price is the only stable price and analyzes the effects of supply and demand changes on equilibrium price and quantity.

Unit 8: Government Intervention in the Market

This unit analyzes the effects of government intervention on market equilibrium, including price controls (ceilings and floors), taxes, and subsidies. It compares and contrasts price and non-price competition, describing their effects on consumers and producers.

Unit 9: Circular Flow

This unit describes the circular flow model, showing the relationships between households, producers, financial institutions, government, and the overseas sector. It differentiates between real and money flows, explaining injections and withdrawals. The unit also defines and explains how to calculate GDP using expenditure and income approaches.

Unit 10: The Market

This unit defines a market and describes its key characteristics. It identifies different types of markets in the economy, explaining their diversity. It also identifies different markets in Samoa.

Unit 11: Inflation

This unit explains the concept of money, its functions, and characteristics. It defines inflation and describes the link between money and inflation as explained by the Quantity Theory of Money.