ZIMBABWE

MINISTRY OF PRIMARY AND SECONDARY EDUCATION

ECONOMICS SYLLABUS

SECONDARY SCHOOL LEVEL

FORM 5 - 6
2017 – 2024

Curriculum Development Unit

P.O. Box MP 133 © All rights
Mount Pleasant reserved
Harare 2016
ACKNOWLEDGEMENT

The Ministry of Primary and Secondary Education wishes to acknowledge the following for their valued contribution in the production
of this syllabus:

- The National Economics syllabus panellists

- Government departments
- Representatives of various organisations
- Representatives from Universities and Colleges
- Publishers
- Zimbabwe School Examinations Council (ZIMSEC)
- United Nations Children’s Education Fund (UNICEF)
- United Nations Educational, Scientific and Cultural Organisation (UNESCO)

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CONTENTS
PAGE

Table of Contents
ACKNOWLEDGEMENT i
1.0 PREAMBLE 1
1.1 INTRODUCTION 1
1.2 RATIONALE 1
1.3 SUMMARY OF CONTENT 1
1.4 ASSUMPTIONS 1
1.5 CROSS CUTTING THEMES 2
2.0 PRESENTATION OF SYLLABUS 2
3.0 AIMS 2
4.0 SYLLABUS OBJECTIVES 3
5.0 METHODOLOGY AND TIME ALLOCATION 3
5.1 METHODOLOGY 3
5.2 TIME ALLOCATION 4
6.0 TOPICS 4
7.0 SCOPE AND SEQUENCE 5
8.0 COMPETENCY MATRIX 9
FORM 5 TOPICS 9
TOOLS OF ECONOMIC ANALYSIS 9
ECONOMIC RESOURCES 10
DEMAND THEORY 12
SUPPLY THEORY 13
THEORY OF THE FIRM 14

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 DISTRIBUTION THEORY 15
GOVERNMENT INTERVENTION IN THE ECONOMY 16
INTERNATIONAL TRADE 17
MEASUREMENT OF ECONOMIC PERFORMANCE 19
MONEY AND THE PRICE LEVEL 20
MACRO-ECONOMIC PROBLEMS AND POLICIES 21
FORM 6 TOPICS 22
DEMAND THEORY 22
SUPPLY THEORY 23
THEORY OF THE FIRM 24
DISTRIBUTION THEORY 25
GOVERNMENT INTERVENTION IN THE ECONOMY 26
INTERNATIONAL TRADE 27
MEASUREMENT OF ECONOMIC PERFORMANCE 28
MONEY AND THE PRICE LEVEL 29
MACRO-ECONOMIC PROBLEMS AND POLICIES 30
9.0 ASSESSMENT 31
a) ASSESSMENT OBJECTIVES 31
b) SCHEME OF ASSESSMENT 31
c) SPECIFICATION GRID 33
10.0 CHECKLIST OF ECONOMIC TERMS AND CONCEPTS 35

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1.0 PREAMBLE

1.1 INTRODUCTION

This economics learning area is a two year syllabus covering Forms 5 and 6. It is designed to expose students to economic
principles and theories as useful tools for rational decision –making relating to individuals, business, government and society;
and to enhance their understanding and appreciation of economics both as an academic field of study and a practical course.

1.2 RATIONALE

The study of Economics enables learners to develop an imaginative, enterprising and creative behaviour. It inculcates in the
learner the ability to manage available resources efficiently and sustainably. The learner is introduced to micro and
macroeconomic issues in order to develop enterprising skills in self reliance, employment creation and resource management
on a local and international level

1.3 SUMMARY OF CONTENT

The syllabus seeks to equip the learner with the economic tools necessary for an understanding and interpretation of
economic phenomena experienced by Zimbabwean people and the world over and for communicating intelligently and
effectively on economic issues such as, inflation, employment, foreign trade, economic growth and development, indigenis
ation and resource management and efficient utilisation among others. In keeping with the Curriculum Blueprint, on
completion of this learning area, the learner will learn to know, learn to do, learn to be, and learn to live together having been
exposed to the values implicit within the human rights and democratic principles.

1.4 ASSUMPTIONS

It is assumed learners:

• have studied Economics, Business Studies or Commerce from Form 1 - 4

• participate in decision making and interact with other economic agents.
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 • are aware of their economic environment
• desire to contribute meaningfully to the community and nation at large.
• have enterprising skills.
1.5 CROSS-CUTTING THEMES

This learning area will address and emphasise the following cross-cutting themes in order to produce a learner who has an

exit profile which is beneficial to society.

• Gender equality - Labour market

• Team work - Production

• Risk management - International trade, Finance and Banking

• Safety - Production

• Food security - Production, Resource Management and Government Intervention

• Technology - Demand and Supply Theory

• Sexuality, HIV and AIDS - National Income Statistics, Economic Development

• Environmental issues - Resource Management, Government Intervention

• Enterprising - International trade, Small to Medium Enterprises, Indigenisation

2.0 PRESENTATION OF SYLLABUS

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 The Economics syllabus is a two year learning area covering Forms 5 – 6. It includes a competency matrix and a suggested
list of resources that can be used.

3.0 AIMS

The syllabus aims to enable learners to:

• develop a thorough awareness of economic terminology, concepts, principles and theories

• comprehend, analyse and evaluate economic issues peculiar to Zimbabwe and other economies

• develop enterprising skills through utilisation of locally available resources for socio-economic transformation

• acquire values of Unhu/Ubuntu/ Vumunhu which will form the basis of decision making in resource allocation through
transparency and accountability

4.0 SYLLABUS OBJECTIVES

Learners should be able to:

• demonstrate knowledge and understanding of economic concepts, principles and theories

• apply theory to solve economic problems in developing and developed economies

• apply enterprising skills to contribute towards socio-economic transformation of their economy.

• organise, present and communicate economic ideas and make informed judgements in a clear, logical and appropriate
form.

• analyse economic information, arguments, proposals and policies taking into consideration relevant information,
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 economic theory and societal values.

• evaluate the social and environmental implications of a particular course of economic action.

5.0 METHODOLOGY AND TIME ALLOCATION

5.1 METHODOLOGY

For the two year Economics learning area objectives to be achieved, a learner centred approach would be applied. Listed
below are some of the methods a teacher can use. It is advisable that the learner be exposed to more than one method in
a lesson.
• class discussions
• debate
• group work
• project work
• problem solving
• research
• seminars
• simulation
• role playing
• educational tours
• school on the shop floor

5.2 TIME ALLOCATION

For the successful implementation of this syllabus, the following time allocation is recommended:
Form 5 - 6 should be allocated at least 8 periods of 35 minutes each per week.

6.0 TOPICS

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 • Tools of Economic Analysis

• Economic Resources

• Demand Theory

• Supply Theory

• Theory of the Firm

• Theory of Distribution

• Government Intervention in the Economy

• International Trade

• Measurement of Economic Performance

• Money and the Price Level

• Macroeconomic Problems and Policies

7.0 SCOPE AND SEQUENCE

TOPIC FORM 5 FORM 6

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Tools of Economic Analysis • Research techniques in Economics
• Measures of central tendency ______________
• Presentation and Analysis of economic data

• Factors of Production
Economic Resources • Renewable and non-renewable resources
• Relationship between societal needs/wants and
available economic resources
• Scarcity ________________
• Choice
• Opportunity cost
• Economic systems
- market economy
- planned economy
- mixed economy

• Characteristics of successful entrepreneurs

Enterprising • Sources of capital _______________
• Business organisations
• Business ethics

Demand Theory • Individual and market demand curves. • Utility theories

• Factors influencing demand - Marginal Utility Theory
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Demand Theory

• Movements along and shifts of a demand curve - Indifference curves Theory

• Price, income and cross elasticities of demand
- Factors affecting elasticities of demand
- Implications of elasticity concepts for
revenue and other business decisions.
Supply Theory • Individual and market supply curves • Growth of firms
• Factors influencing market supply • Survival of Small and Medium Enterprises
• Movements along and shifts of supply curves • Government support to SMEs
• Equilibrium price and quantity • Benefits of SMEs to society
• Consumer surplus and producer surplus
• Elasticity of supply
• Determinants of elasticity of supply
• Short – run and long – run production function
• Production costs
• Long-run cost function
- Economies and diseconomies of scale, (
internal and external).
Theory of the Firm: • Objectives of firms • Profits and losses
• Price and output determination: - Normal profits
- equilibrium conditions (e.g marginal cost = - Abnormal profits
marginal revenue) - Cost minimisation
- Application of demand and supply analysis - Profit maximisation

• Market structures • Economic efficiency

- Perfect competition - Allocative efficiency
- Monopoly - Productive efficiency
- Monopolistic competition - Technical efficiency
- Oligopoly
- Contestable markets • Price discrimination

Advantages and disadvantages of each

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 market structure
• Comparison of market structures
• Evaluation of market structures
• Application to an economy
Theory of Distribution: • Factors of production. • Marginal Revenue Productivity Theory
• Determinants of supply and demand of each .
factor of production • Theory of demand and supply of
• Determination of rewards to factors of factors of production.
production • Wage differentials
- Rent • Loanable Funds Theory
- Wages • Liquidity Preference Theory
- Interest
- Profit • Application and evaluation of theories
• Economic rent of distribution in developing countries
• Transfer earnings such as Zimbabwe.
• Quasi rent

Government Intervention in the E • Sources of market failure • Strengths and weaknesses of solution
conomy: - Public goods s to market failure
- Externalities • Application and evaluation of each
- Merit and demerit goods government intervention measure in
- Market imperfections an economy such as Zimbabwe

• Solutions to market failure • Strengths and weaknesses of central

- Taxation planning
- Price controls
- Subsidies • The decision-making process in
- Direct provision Zimbabwe
- Production quotas • Cost-benefit analysis
- Buffer stock
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 - Commercialisation
- privatisation
- central planning
- wages legislation/ Incomes Policy
- Land reform programme

International Trade • Principles of absolute and comparative advantage. • Balance of Payments (BOP)
• Other determinants of trade flows e.g. political • Balance of Payments disequilibrium
factors. • Terms of trade.
• Arguments for and against free trade. • Exchange rates
• Types of protectionism. • Policies designed to correct BOP
• Economic integration. disequilibrium
• Commodity agreement.

Measurement of Economic • The circular flow of income of a closed and open • National income determination
Performance economy • Main schools of thought.
• National income statistics • Aggregate demand and supply analysis.
• GDP deflator
• Comparison of living standards
Money and the Price Level • Characteristics and functions of money • Supply and demand for money
• Money market • Interest rate determination
• Credit creation • Inflation

Macro-economic Problems and • Macroeconomic problems • Conflicting macroeconomic objectives

Policies • Characteristics of developing and developed • Objectives of macro-economic policy
countries • Fiscal policy
• Monetary policy
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Policies

• Exchange rate policy

8.0 COMPETENCY MATRIX

FORM 5
TOOLS OF ECONOMIC ANALYSIS

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be (Skills, attitudes and ACTIVITIES RESOURCES
able to: knowledge)
Research • explain • Techniques of data • Discussing the techniques of • ICT tools
techniques methods of collection collecting data • Central statistic
collecting - interviews • Collecting data using the manuals
data in - questionnaires techniques • Charts with
economics - surveys • Drafting a questionnaire diagrams and
• compare and - observations • Comparing and contrasting the graphs
contrast - sampling methods of data collection
methods of - experiments • Distinguishing the strengths and
data • Strengths and weaknesses of the methods
collection weaknesses of data
collection techniques

Measures of • calculate the • Measures of central • Computing the mean, mode and
central tendency mean, mode tendency median
and median - Mean
- Mode
- Median
Presentation • compile data • graphs and diagrams • Drawing graphs and diagrams
and analysis of • analyse data - pie charts • Interpreting data
economic data in graphical, - bar charts • Comparing data variables
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economic data
pictorial and - frequency polygons • Compiling data from given
numerical - pictorial data schedule
form - line graphs • Analysing graphical, pictorial
• tables and numerical data
• schedules
ECONOMIC RESOURCES

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be (Skills, attitudes and ACTIVITIES RESOURCES
able to: knowledge)
Factors of Production • explain the • Factors of production • Discussing factors of • ICT tools
factors of - Land production • Resources
production - Labour • Explaining the persons
• analyse the - Capital economic problem of • Charts showing a
relationship - Enterprise scarcity P.P.C
between wants • renewable resources • Illustrating efficiency,
and available • nonrenewable resource inefficiency and un
resources s attainable points
(scarcity) • scarcity using the Production
• use production • choice Possibility Curve
possibility • opportunity cost (PPC)
curves to • production possibility • Illustrating different
demonstrate curve shapes of the PPC
scarcity, choice • efficiency • Explaining different
and opportunity • increasing, decreasing shapes of the (PPC).
cost and constant
Economic Systems opportunity cost • Comparing and
• compare • economic systems contrasting resource
resource - market allocation in different
allocation in - planned economic systems
different - mixed • Analysing the
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 economic • The role of price Zimbabwean system
systems - signalling • Discussing the role
- rationing of the price
Enterprising - rewarding • Discussing
• explain the • Characteristics such as characteristics of a
characteristics - risk takers successful
of a successful - opportunity entrepreneur
entrepreneur utilisation
• Describing
• Idea generation requirements for
• assess the • business proposal business formation
requirements • licensing • Recognising
for business • registration business
formation opportunities and
• Identify existing starting up a small
business scale entity
Sources of capital opportunities • Sources of capital such • Discussing sources
• explain sources as: of capital
of capital - loans • Identifying
• analyse - shares procedures to be
procedures in - leasing followed in acquiring
acquiring - hire purchase capital
capital - personal savings
Business Organisations • Business organisations
- sole trader • Comparing and co
• examine and - partnership ntrasting types of
select the best - cooperatives business
type of - private & public limited organisations
businesses • Selecting the best
suitable to business
Business ethics one’s • Business ethics organisations
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 environment -Unhu/Ubuntu/ suitable to one’s
Vumunhu environment
• explain - accountability • Discussing business
business ethics - social responsibility ethics
- environmental
consciousness

DEMAND THEORY

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be able to: (Skills, attitudes and ACTIVITIES RESOURCES
knowledge)
• analyse the causes of • Demand curve • Drawing market • ICT
Determinants of movements along the demand curves • Print media
demand demand curve and shifts • Determinants of • Explaining the • Electronic media
of the demand curve. demand movements along and • Resource person
shifts of a demand
curve

Elasticity concepts • explain concepts of • Price, income and • Computing various

elasticity of demand cross elasticity of elasticities of demand
• calculate various demand • Interpreting numerical
elasticities of demand • Importance of values
• evaluate the importance elasticity concepts • Illustrating degrees of
of elasticity of demand to : elasticities
- Households • Assessing the
- Firms importance of
- Government elasticity concepts
• Researching and
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 analysing demand
patterns in their
immediate markets

SUPPLY THEORY

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be able to: (Skills, attitudes and ACTIVITIES AND NOTES RESOURCES
knowledge)
Determinants of • explain the • Supply curve • Drawing market supply • ICT tools
supply determinants of • Determinants of curves • Charts/ diagrams
supply supply • Explaining movements on supply curves
• distinguish between along and shifts of a • Resource person
movements along supply curve
and shifts of the
Equilibrium price supply curve • Equilibrium price and • Illustrating equilibrium
and quantity • explain the quantity • Explaining the difference
establishment of • Consumer surplus between consumer
equilibrium price and • Producer surplus surplus and producer
quantity surplus
• distinguish between
consumer surplus
Price elasticity of and producer surplus • Price elasticity of • Explaining determinants
supply • calculate price supply of elasticity of supply
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 elasticity of supply • Importance of • Evaluating the
• analyse elasticity of supply importance of price
Production costs determinants of • Production costs elasticity of supply
elasticity of supply - Short run costs • Discussing short run and
• explain short run and - Long run costs long run production
long run periods • Costs costs
• calculate production - Total cost • Computing production
costs - Marginal cost costs
• distinguish between - Average costs • Analysing economies and
internal and external • Economies of scale diseconomies of scale
economies and • Diseconomies of
diseconomies of scale
scale

THEORY OF THE FIRM

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be able to: (Skills, attitudes and ACTIVITIES AND NOTES RESOURCES
knowledge)
Objectives of • explain the objectives of • Objectives of firms • Discussing the • Print media
firms firms such as: objectives of the firm • ICT tools
- Profit
maximisation
- Survival
- Growth
- Sales
Price and output • describe the equilibrium maximisation • Demonstrating the
19
determination conditions of the firm • Firm’s equilibrium equilibrium
• analyse the factors that conditions (e.g positions
influence the pricing and MC=MR) • Discussing factors that
output decisions of the • Application of affect pricing and
firm; demand and supply output decisions of the
Market structures • explain the concept of analysis firm
market structure; • Features of different • Discussing
• compare and contrast market structures characteristics of
market structures; - perfect market structures
• assess the efficiency of competition • Comparing and
firms in different market - monopoly contrasting market
structures - oligopoly structures
- monopolistic • Evaluating the efficiency
competition of firms
- contestable • Identifying the type of
markets market structures in
• Analysis of market their own setting
structures
- Allocative and
productive
efficiency

DISTRIBUTION THEORY

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be able to: (Skills, attitudes and ACTIVITIES AND NOTES RESOURCES
knowledge)
Factors of • explain the rewards• Rewards for factors of • Analysing the • ICT Tools
production. for the factors of production. rewards for factors • Print media
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 production; - Rent of production
- interest,
- wages
- profit.
• distinguish between • Economic rent • Explaining the
economic rent and • Quasi rent difference between
quasi rent or • Transfer earnings transfer earnings
transfer earnings and economic rent

Determination of • apply the Marginal • Theories of distribution • Discussing the

rewards for Revenue - MRPT theories of distribution
factors of Productivity Theory - Demand and Supply
production (MRPT) to the dema - Liquidity Preference T
nd for land, capital heory
and labour - Loanable Funds Theory
• explain
determination of
rewards using
Wage Demand and Supply • Wage differentials • Evaluating the reasons
differentials Theory - Economic theory for wage differentials
• explain the concept - Non-economic theory in Zimbabwe
of wage differentials • Analysing
• justify the existence imperfections in the
of wage differentials labour market

GOVERNMENT INTERVENTION IN THE ECONOMY

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be able to: (Skills, attitudes and ACTIVITIES AND NOTES RESOURCES
21
KEY CONCEPTS
Learners should be able to: ACTIVITIES AND NOTES RESOURCES
knowledge)
Sources of market • explain the reasons • Reasons for • Discussing reasons • Print media
failure for government government for government • ICT tools
intervention in the intervention: intervention ( market
market -public goods failure)
-externalities
-market imperfections
-merit and demerit
goods
-common properties
Solutions to • explain methods by • Explaining the
market failure which governments • Measures used methods of
intervene in markets by government to government
control market intervention to correct
failure: market failure
- taxation • Explaining the
- subsidies sources of
- direct provision externalities
- regulation • Identifying market
- privatisation failure exhibited in
- commercialisatio their environment
n • Suggesting possible
- nationalisation solutions to market
- control trade failure in their
unions communities
- quotas
- Buffer stock

22
INTERNATIONAL TRADE

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be (Skills, attitudes ACTIVITIES AND NOTES RESOURCES
able to: and knowledge)
International Trade • explain absolute • Theories of • Discussing absolute and • Recommended
theories and comparative trade comparative advantage textbooks
advantage -absolute and theories • ICT tools
theories. -comparative • Researching on Zimbabwe’s • Print media
Free trade advantage. position of trade in terms of
• explain reasons • Determinants of comparative advantage
for trade. trade such as: • Analysing reasons for trade
-trade flows
-political • Discussing free trade
• justify free trade factors.
• Arguments for
Protectionism and against free • Assessing the effectiveness
• explain types of trade. of methods of protectionism
protectionism • Types of
• evaluate types of Protectionism
Economic protectionism such as • Distinguishing the types of
Integration • explain economic - tarrifs, quotas etc integration
integration • Economic • Assessing the benefits of
• assess the merits integration such economic integration
and demerits of as:
each type of - free trade
economic area
integration - customs union • Assessing the usefulness
• examine - economic union of commodity agreements
commodity • commodity
agreements agreements
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 - GATT
- bilateral
agreements

MEASUREMENT OF ECONOMIC PERFORMANCE

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED SUGGESTED

Learners should be able (Skills, attitudes and LEARNING ACTIVITIES RESOURCES
to: knowledge) AND NOTES
Circular flow of national income • explain the flow of • The circular flow of • Analysing the flow • Print media
national income income of income • ICT tools
- closed • ZIMSTAT
economy Publications
National income statistics • calculate national - open economy • Computing national
income using • National income income
different approaches statistics • Gathering national
• compare national - Output income statistics
income statistics approach • Analysing national
between countries - Income income statistics
and within the same approach • Assessing the
country - Expenditure usefulness of
approach national income
- GDP statistics
- GNP
- NNP
GDP deflator • calculate the real - Per capita
income using GDP income • Converting nominal
deflator • GDP deflator income into real
• distinguish between • Nominal and Real income
nominal and real • Comparison of • Explaining the
24
 income living standards difference between
nominal and real
income

MONEY AND THE PRICE LEVEL

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be able to: (Skills, attitudes and ACTIVITIES AND NOTES RESOURCES
knowledge)
Characteristics • explain characteristics of • Money • Analysing characteristics • Print media
and functions of money - Characteristics and functions of money. • ICT tools
money • examine the functions of - Functions • Resource persons
money

Money market • explain the functions and • Money market • Discussing the functions
role of money market institutions of money market
institutions in an - Central bank institutions
economy - Commercial • Visiting money market
banks institutions
- Building societies
- Merchant banks
Credit creation • Computing the money
• calculate the money • Credit creation multiplier
multiplier - Money multiplier • Demonstrating the use of
• illustrate how banks money multiplier to
create money determine money supply
• discuss the impact of
25
 - Money multiplier

credit creation in an • Discussing the effect of

economy credit creation in an
economy

MACRO-ECONOMIC PROBLEMS AND POLICIES

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be (Skills, attitudes and ACTIVITIES AND NOTES RESOURCES
able to: knowledge)
Macroeconomic • analyse causes of • Macroeconomic • Explaining causes of • ICT tools
problems macroeconomic problems such as: macro-economic • Print media
problems - Unemployment problems
• assess the effects - Inflation • Discussing the
of macroeconomic - BOP and Exchange effects of
problems rates macroeconomic
problems
• Identifying effects of
unemployment and
Developing and D • distinguish • Characteristics of inflation in their
eveloped between developing and society
economies developing and developed • Comparing
developed countries developing and
economies developed economies

26
economies

developed economies

FORM 6

DEMAND THEORY

KEY CONCEPTS OBJECTIVES UNIT CONTENT (Skills, SUGGESTED LEARNING SUGGESTED

Learners should be able attitudes and ACTIVITIES RESOURCES
to: knowledge)

• explain theories of • Marginal utility • Explaining theories of • ICT tools

Marginal utility demand theory demand • Charts with d
• examine the relevance - Diminishing • Assessing the relevance iagrams
of the theories of marginal utility of theories of demand illustrating utility
demand - Equi-marginal and indifference
principle curves
- Limitations of • Print media
marginal utility
theory
27
Indifference curves • distinguish between • Explaining the
theory normal and inferior • Indifference curve differences between
goods using the analysis normal and inferior
substitution and - Substitution and goods using the
income effects income effects substitution and income
- Normal goods effects
- Inferior goods

SUPPLY THEORY

KEY CONCEPTS OBJECTIVES UNIT CONTENT (Skills, SUGGESTED LEARNING SUGGESTED

Learners should be able attitudes and ACTIVITIES RESOURCES
to: knowledge)
Growth of firms • explain the reasons • Growth of firms • Discussing reasons for • ICT Tools
for growth of firms - Integration growth of firms • Resource Persons
• analyse the methods - Mergers • Explaining methods of from SMEs
of growth of firms - Diversification growth of firms • Print media
• assess the benefits of • Multinational firms • Evaluating benefits and
large firms to the costs of large firms to
economy society

28
Survival of SMEs • justify survival of • Small to Medium • Analysing the
Small to Medium Enterprises government involvement
Enterprises (SMEs) • Government in SMEs creation
• analyse reasons for involvement in the • Discussing survival of
government creation of SMEs small firms
involvement in the • Benefits of SMEs • Evaluating benefits of
creation of SMEs SMEs in their immediate
environment

THEORY OF THE FIRM

KEY CONCEPTS OBJECTIVES UNIT CONTENT (Skills, SUGGESTED LEARNING SUGGESTED

Learners should be able attitudes and ACTIVITIES AND NOTES RESOURCES
to: knowledge)
Profits and losses • explain the types of • Profits and losses • Analysing the types • Print media
profits earned by firm - Normal profits of profits • ICT tools
s - Abnormal profits • Financial magazi
- Cost nes
minimisation • Newspapers
- Profit
Economic efficiency maximisation • Evaluating the efficiency
29
 • Newspapers

• assess the efficiency of

of firms in different • Economic different market
market structures efficiency structures
- Allocative
efficiency • Analysing the
- Productive similarities and
efficiency differences between
- Technical market structures
efficiency
Price discrimination
• explain price • Analysing the effects of
discrimination • Price discrimination price discrimination in
• analyse conditions for • Conditions for price their community
price discrimination. discrimination • Evaluating conditions for
price discrimination.

DISTRIBUTION THEORY

KEY CONCEPTS OBJECTIVES UNIT CONTENT (Skills, SUGGESTED LEARNING SUGGESTED

Learners should be able attitudes and ACTIVITIES AND NOTES RESOURCES
to: knowledge)
Theories of • apply theories of • Marginal Revenue • Assessing the • Print media
30
distribution distribution to the Productivity T application of • ICT tools
economy heory. economic theories to
• Theory of D the economy
emand and
Supply of factors
of production.

Interest rate • evaluate the • Loanable Funds T • Analysing interest

determination applicability of the heory rate determination in
Loanable Funds • Liquidity the economy
and Liquidity P Preference T
reference Theories heory • Evaluating theories of
in determining distribution
interest rates in
their economy

GOVERNMENT INTERVENTION IN THE ECONOMY

KEY CONCEPTS OBJECTIVES UNIT CONTENT (Skills, SUGGESTED LEARNING SUGGESTED

Learners should be able attitudes and ACTIVITIES AND NOTES RESOURCES
to: knowledge)
Solutions to market • analyse the • Solutions to • Evaluating the • Print media
31
failure effectiveness of market failure effectiveness of • ICT tools
government - strengths government
intervention in an - weaknesses intervention in an
economy • Government economy
intervention in an
economy such as
Zimbabwe

Central planning • assess the • Central planning • discussing the

effectiveness of - strengths effectiveness of
central planning in - weaknesses central planning in an
an economy economy
Decision making • analyse the • The d • Evaluating CBA as a
decision making ecision-making decision making tool
process in process in • Researching on the
Zimbabwe Zimbabwe decision making
• analyse the process in Zimbabwe
applicability of • Cost-Benefit A
CBA as a decision nalysis
making tool

INTERNATIONAL TRADE

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be (Skills, attitudes and ACTIVITIES AND NOTES RESOURCES
32
KEY CONCEPTS
ACTIVITIES AND NOTES RESOURCES
able to: knowledge)
Balance of • examine the • Balance of payments • Analysing the • Print media
Payments (BOP) components of (BOP) components of BOP • ICT tools
BOP - Current account • Calculating BOP
- Capital account • Collecting and
- Balance of official analysing data on
financing Zimbabwe’s
BOP • assess the types • Balance of payments composition and value
Disequilibrium of BOP disequilibrium of exports and imports
disequilibrium - Surplus • Analysing possible
- Deficit opportunities in the
export market
Trade Policies • Trade policies • Analysing BOP
• evaluate policy - Exchange rate surplus and deficit
measures to - Import • Discussing policy
correct BOP substitution measures to correct
disequilibrium - Protectionism BOP disequilibrium
- Export promotion
- Look East
Terms of trade
(TOT) • Terms of trade • Analysing terms of
• calculate terms of - Import price index trade
trade - Export price index
Exchange rates
• Exchange rate • Discussing operations
• assess the regimes of exchange rates
operations of - Fixed
exchange rates - Floating
- Managed

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MEASUREMENT OF ECONOMIC PERFORMANCE

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be (Skills, attitudes ACTIVITIES AND NOTES RESOURCES
able to: and knowledge)
National income determination • explain • National income • Analysing national • Print media
national determination income determination • ICT tools
income - Consumptio • Illustrating
determination n equilibrium national
- Investment income
- Government • Explaining
expenditure inflationary and
- Net exports deflationary gaps
Main schools of thought • discuss the
main schools • Main schools of
of thought thought. • Discussing the main
- Keynesians schools of thought.
- Monetarists
• analyse the
Aggregate demand and supply analysis components • Aggregate
of aggregate demand and • Explaining the
demand and supply analysis. components of
supply aggregate demand
and supply.

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MONEY AND THE PRICE LEVEL

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be able to: (Skills, attitudes and ACTIVITIES AND NOTES RESOURCES
knowledge)
Demand and • explain the determinants • Determinants of • Analysing the • Print media
supply for money of money demand and money demand determinants of money • Multimedia
supply • Determinants of demand and supply • ICT tools
money supply
Interest rate
determination • examine the use of • Interest rate • Discussing interest rate
economic theories in determination determination
explaining interest rate - Loanable Funds T
determination heory
- Liquidity Prefe
rence Theory
- Non economic
determinants
Inflation
• explain how inflation is • Consumer Price • Analysing the
measured Index & Retail Price relationship between
• explain the relationship Index money supply and the
between money supply • Inflation price level
and price level - Quantity Theory • Discussing the
of Money effectiveness of
- Causes of measures used to control
inflation inflation
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 and price level

inflation
- Effects of
inflation
- Controlling
inflation

MACRO-ECONOMIC PROBLEMS AND POLICIES

KEY CONCEPTS OBJECTIVES UNIT CONTENT SUGGESTED LEARNING SUGGESTED

Learners should be (Skills, attitudes and ACTIVITIES AND NOTES RESOURCES
able to: knowledge)
Macroeconomic • explain the • Macroeconomic • Discussing the • Print media
Objectives macroeconomic objectives relevance of • ICT tools
objectives - Price stability macroeconomic
- Full employment objectives in an
- Economic growth economy
and development
- Equity

Conflicting • examine the • Conflicting • Analysing the trade

macroeconomic relationship macroeconomic off among objectives
objectives among objectives such as:
macroeconomic - Price stability
objectives versus
unemployment
Macroeconomic • Evaluating
policies • analyse • Macroeconomic effectiveness of
36
policies
macroeconomic policies macroeconomic
policies - fiscal policy policies (with
- monetary policy emphasis being on
- exchange rate the Zimbabwean
policy economy)
• Conflicting policy
objectives

9.0 ASSESSMENT

a) ASSESSMENT OBJECTIVES
By the end of the learning area learners should be able to;

• Explain economic concepts, principles and theories,

• Illustrate knowledge and understanding of economic variables,

• Interpret and comment on economic phenomena presented in specific scenarios to ascertain cause and effect,

• Apply theory to solve economic problems in developing and developed economies,

• Organise, present and communicate economic ideas and make informed judgements in a clear, logical and
appropriate form,

• Analyse economic information, arguments, proposals and policies taking into consideration relevant information,
economic theory and social values,
37
 • Evaluate the social and environmental implications of a particular course of economic action guided by the values of
Unhu/ Ubuntu/ Vumunhu.

b) SCHEME OF ASSESSMENT

The syllabus scheme of assessment is grounded on the principle of inclusivity. Arrangements, accommodation and
modifications must be visible in both continuous and summative assessments to enable candidates with special needs to
access assessments and receive accurate performance measurement of their ability

FORM OF ASSESSMENT WEIGHTING

CONTINUOUS 30%
SUMMATIVE 70%
TOTAL 100%

CONTINUOUS ASSESSMENT

LEVEL ASSESSMENT TASKS WEIGHTING

FORM 5 1 ASSIGNMENT PER TERM 10%
1 THEORY TEST PER TERM
1 PRACTICAL ASSIGNMENT PER YEAR
FORM 6 1 ASSIGNMENT PER TERM 20%
1 THEORY TEST PER TERM
1 PRACTICAL ASSIGNMENT PER YEAR
TOTAL 30%

N.B. All assignments and tests should be marked out of 100

Soft skills should be assessed as learners do the continuous assessment tasks

38
 SUMMATIVE ASSESSMENT

PAPER TYPE OF PAPER DURATION MARKS WEIGHTING

1 Multiple choice 1hr 30mins 40 20%
2 Data response 1 hr 15mins 40 20%
3 Essays 3hrs 100 30%
TOTAL 70%

c) SPECIFICATION GRID

CONTENT DISTRIBUTION

PAPER 1 PAPER 2 PAPER 3

39
1. Tools of economic analysis 1. Tools of economic analysis 1. Economic Resources

2. Economic Resources 2. Economic Resources 2. Demand theory

3. Demand theory 3. Demand theory 3. Supply Theory

4. Supply Theory 4. Supply Theory 4. Theory of the firm

5. Theory of the firm 5. Theory of the firm 5. Theory of distribution

6. Theory of distribution 6. Theory of distribution 6. Government intervention in the economy

7. Government intervention in the economy 7. Government intervention in the economy 7. International Trade

8. International Trade 8. International Trade 8. Measurement of Economic Performance

9. Measurement of Economic Performance 9. Measurement of Economic Performance 9. Money and the Price level

10. Money and the Price level 10. Money and the Price level 10. Macroeconomic Problems and Policies

11. Macroeconomic Problems and Policies 11. Macroeconomic Problems and Policies

SKILL DISTRIBUTION

40
SKILL PAPER 1 PAPER 2 Paper 3
1. Knowledge and understanding 20-25% 20% 28%
2. Interpretation and application 50-55% 40% 16%
3. Analysis 20-25% 30% 20%
4. Evaluation ------- 36%
5. Organisation, Presentation and ------- 10%
Communication

DESCRIPTION OF PAPERS

Paper 1 Multiple Choice

The paper consist of 40 items with 4 options per question A,B, C or D. Candidates are required to select the most appropriate option
in a duration of 1 hr 30 minutes. The paper will carry 20% of the marks for the learning area.

Paper 2 Data Response

The paper will consist of two compulsory questions each carrying 20 marks testing particular knowledge, understanding and
problem solving skills. The time duration of the paper is 1hr 15minutes. The paper will carry 20% of the marks for the learning area.

Paper 3 Theory Essays

This paper will consist of 12 questions and candidates will be required to attempt 4 questions. The time duration of the paper will be
3hrs. The paper will carry 30% of the marks.

Paper 4 Continuous Assessment

The continuous assessment will be based on assignments, tests and practical assignments. These will be spread over the 2 year
period for the learning area. It will carry 30% of the marks.

41
10.0 CHECKLIST OF ECONOMIC TERMS AND CONCEPTS

NB A checklist such as this is neither exhaustive nor prescriptive: unless it is indicated as `not required', the omission of an item from
this list does not mean that examiners will not refer to it, while teachers may find if helpful or desirable in their learning areas to
introduce terms and concepts even if they lie outside the scope of the examined syllabus.

abnormal profit average propensity

absolute advantage average revenue
accelerator average variable cost
active balances balance for official financing
ad valorem tax balance of payments
aggregate demand balance of trade
aggregate expenditure balanced Budget
aggregate supply balancing item
allocative efficiency Bank Rate
appreciation (exchange rate) barriers to entry
at constant prices barriers to exit
at current prices barter
at factor cost base date
at market prices bilateral trade
automatic stabilisers birth rate
autonomous broad money supply
average cost budget line
average fixed cost
average product canons of taxation
cross-elasticity of demand
capital current account of Balance of Payments
capital account of Balance of Payments customs unions
capital: output ratio death rate
cartels deficit
42
cash ratio deficit financing
cash ratio deposits deflation
central bank deflationary gap
ceteris paribus demand
change in demand demand conditions
change in quantity demanded demand cuve
cheques demand-deficiency unemployment
infrastructure market
injections market economy
integration market failure
interest market system
interest rate marketing economies
intermediation, financial Marshaall-Lerner Condition
internal economies of scale maximisation
investment measure of value
invisible balance medium of exchange
J-curve menu costs of inflation
Keynesian merit goods
Labour microeconomics
laissez-faire migration
land Minimum Lending Rate
law (economic) mixed economy
law of demand mobility of labour
law of supply Monetarism
leakages monetary policy
liquidity money
liquidity preference money supply
liquidity ratio monopolistic competition
liquidity trap monopoly
loanable funds theory monopsony
Lome Convention multilateral trade
43
long run multinationals
Maastricht, Treaty of multiplier
Macroeconomic narrow money supply
managed floating National Debt
marginal cost nominal income
natural increase
natural rate of unemployment perfectly inelastic
natural monopoly Phillips Curve
near-money planned economy
negative externalities point elasticity
net advantage positive externalities
net domestic product positive statement
net national product poverty trap
net property income from abroad precautionary demand for money
nominal price agreements
non-excludability price competition
non-pecuniary advantages price discrimination
non-price competition price elasticity of demand
non-rivalness price leadership
normal goods price mechanism
normal profit primary sector
normative statement principle of multiples in economies of scale
occupational mobility private benefits
official financing private costs
oligopoly private goods
open economy private sector liquidity
open market operations privatisation
opportunity cost producers' surplus
optimum output production possibility curve
optimum population productive efficiency
optimum resource allocation productivity
44
other things being equal profit
paradox of thrift profit maximisation
paradox of value progressive taxation
Pareto optimality proportional taxation
Patents protectionism
paternalism PSBR
pecuniary advantages PSDR
pensions public goods
perfect competition purchasing power parity
perfectly elastic quality of life
Quantity Theory of Money specific tax
quasi-rent speculative demand for money
quotas standard of deferred payments
rate of interest standard of living
rationing store of wealth
real structural unemployment
rectangular hyperbola subsidy
reflation substitute goods
regional policies substitution effect
regressive taxation supernormal profit
rent supply
reserve currencies supply conditions
resources supply curve
Restrictive Practices Court supply-side economies
retail banks surplus
Retail Prices Index sustainability
Revaluation tariffs
risk-bearing economies of scale taxation
sales maximization technical economies
sales revenue maximisation technical unemployment
satisficing profits terms of trade
45
saving tertiary sector
scarcity total currency flow
seasonal unemployment total revenue
second best theory trade creation
secondary sector trade cycle
services trade diversion
shares trade unions
shoe leather cost of inflation trading possibility curve
short run transactions demand for money
Smith, Adam transfer earnings
social benefits transfer payments
social costs Treasury Bills
special deposits unemployment
Special Drawing Rights unit of account
Specialization unitary elasticity
unstable equilibrium
urbanisation
variable costs
variable proportions
velocity of circulation
vertical integration
visible balance
voluntary unemployment
wage differentials
wage drift
wages
weights
withdrawals
working capital
yield

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