Author: KNEC notes and Past Papers

Medium of exchange – money is generally acceptable by everybody in exchange for goods and services.it therefore enables trade to be carried out conveniently hence reducing drawbacks of barter trade Measure of value – when commodities are valued in terms Read More …

For a commodity to perfom as money it has to have the following characteristics. Acceptability – money must be acceptable to everyone for it to be used as a medium of exchange Durability – should be able to last for Read More …

Money is any asset that is generally acceptable as a means of payment to settle transactions as well as a medium of exchange.it is anything that is generally acceptable for payment of debts.Stages in development of money Historically, the development Read More …

When establishing a business,a person must decide on form of business ownership.in making this decision,he/she will consider the following factors; The formation requirements Ease of creation of business. Flexibility(change). Expenses to start and maintain(capital needed). Legal requirements. Government control and Read More …

There are three main ways of classifying economic resources namely; Natural resources -They are also called the gifts of nature and are fixed in such by they are held in trust by the government for the citizens. They include; forest, Read More …

These are ways or means required for satisfying our want or need. These resources can either be goods, services. CHARACTERISTICS OF ECONOMIC RESOURCES. They are scarce in relationto their uses They have a monetary value. They have alternative uses. They Read More …

Trade or exchange of goods involves several difficulties, which are removed by auxiliaries (ensure smooth flow of goods from producers to the consumers) known as aids to trade.It refers to all those activities which directly or indirectly facilitates smooth exchange Read More …

Commerce is the study of business activities.It is a division of trade or production which deals with the exchange of goods and services from the producers to the final consumers. A producer is someone who produces goods, while a consumer Read More …

Satisfies the increasing human wants. Human wants are never ending. They are classified as basic and secondary wants Has made distribution and has led to movement of goods from one part of the world to the other. Commerce has greatly Read More …

SCARCITY The term scarcity is used to describe the limited nature of economic resources. CHOICE Scarcity of economic resources makes choice essential such that human wants can’t be satisfied. The choice is made with a scale of preference. OPPORTUNITY COST Read More …