Lesson Plan

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Lesson Plan
Grade: Date: 25/02/2026
Subject: Economics
Lesson Topic: indicators of living standards and economic development: monetary indicators including real per capita national income statistics (GDP, GNI, NNI) and purchasing power parity
Learning Objective/s:
  • Describe the concepts of real GDP, GNI, NNI and how they are calculated per capita.
  • Explain how Purchasing Power Parity adjusts monetary indicators for price‑level differences.
  • Calculate growth rates of real per‑capita income and interpret their significance for development.
  • Compare countries using monetary indicators and assess the limitations of these measures.
Materials Needed:
  • Projector and screen
  • PowerPoint slides with definitions, formulas, and example tables
  • Printed worksheet with calculation exercises
  • Calculator or spreadsheet software
  • Whiteboard and markers
 Introduction:
Imagine comparing the standard of living in two countries that have very different price levels. Students already know the basic idea of GDP, so we will build on that knowledge. By the end of the lesson they will be able to compute real per‑capita income and adjust it using PPP, demonstrating their understanding through a short exit ticket.
Lesson Structure:
  1. Do‑now (5') – quick quiz on nominal vs. real GDP.
  2. Mini‑lecture (15') – definitions of real GDP, GNI, NNI and per‑capita calculations with formulas.
  3. Guided practice (10') – calculate real per‑capita GDP using the provided example table.
  4. PPP concept (10') – explain PPP, present the conversion‑factor formula and discuss its purpose.
  5. Group activity (15') – students compute PPP‑adjusted per‑capita income for two sample countries using the worksheet.
  6. Whole‑class discussion (5') – compare results, highlight strengths and limitations of monetary indicators.
  7. Exit ticket (5') – write one advantage and one limitation of using monetary indicators for development analysis.
Conclusion:
We recap how real per‑capita income and PPP provide a clearer picture of living standards than raw market‑rate figures. Students submit their exit tickets, demonstrating immediate recall of key concepts. For homework, they will complete a worksheet converting market‑rate GDP to PPP for a third country and reflect on the limitations of the results.