Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: average and marginal propensities to import (apm and mpm)
Learning Objective/s:
  • Define the average propensity to import (APM) and the marginal propensity to import (MPM).
  • Calculate APM and MPM from given data and the import function.
  • Interpret how APM and MPM affect the circular flow and the multiplier in an open economy.
  • Compare import propensities with consumption propensities (APC, MPC).
  • Apply the concepts to a numerical example and explain policy implications.
Materials Needed:
  • Projector and screen for slides/diagrams
  • Whiteboard and markers
  • Printed worksheet with data tables and calculation tasks
  • Calculators or spreadsheet access for students
  • Handout of import‑function formulas and key definitions
 Introduction:
Begin with a quick poll: “When you buy a foreign product, where does that money go?” Connect to prior learning on leakages in the circular flow. Explain that today’s success criteria are to define, calculate and interpret the average and marginal propensities to import.
Lesson Structure:
  1. Do‑now (5’) – Short recall quiz on leakages and injections.
  2. Mini‑lecture (10’) – Present definitions, formulas, and link to APC/MPC using slides.
  3. Guided practice (12’) – Work through the provided numerical example, calculating APM at Y=600 and MPM for each interval.
  4. Collaborative activity (10’) – Pairs derive the import function from a new data set and discuss its impact on the multiplier.
  5. Concept check (5’) – Quick exit poll (show of hands) on which propensity determines the slope of the import curve.
  6. Summary & homework briefing (3’) – Recap key take‑aways and assign a worksheet problem extending the import function.
Conclusion:
Summarise that APM shows the share of income spent on imports while MPM indicates how imports respond to income changes, both shaping the leakage in the circular flow. Ask students to write one sentence on a sticky note describing a policy that could lower the MPM as an exit ticket. For homework, complete the worksheet extending the import function to a different income range.