Lesson Plan

Economics
For G.C.E (Advanced Level Students)
EDU-ZONE COLLEGE, Colombo 14

IS 4510 E-Education
Assignment - 02

164011X Ashfak.M.R.M
164052X Imran M. D. M
165063N Sajeenthan.K
164142A Uwais. F. B. M
Introduction 3
Objectives of the syllabus 4

Lesson 01 - Comparatively analyses the alternative ways of solving the basic

economic problems in an economic system. 5
Introduction 5
Lesson Learning Objectives 5
Topics of the Lesson and Subject Contents 5
Lesson Activities 6
Assessment Activities 7

Lesson 02 - Analyses demand, supply, elasticity, and market equilibrium. 7

Introduction 7
Lesson Learning Objectives 8
Topics of the Lesson and Subject Contents 8
Lesson Activities 9
Assessment Activities 10
Lesson 03 - Investigates government intervention to the market. 10
Introduction 10
Lesson Learning Objectives 10
Topics of the Lesson and Subject Contents 11
Lesson Activities 11
Assessment Activities 12

Lesson 04 - Explores the rational behaviour of production firms within the market and
behaviour of the factor market. 12
Introduction 12
Lesson Learning Objectives 12
Topics of the Lesson and Subject Contents 13
Lesson Activities 14
Assessment Activities 14
Lesson 05 - Demonstrates the readiness of preparing the national accounting by
considering the Macroeconomic operations. 14
Introduction 14
Lesson Learning Objectives 15
Topics of the Lesson and Subject Contents 15
Lesson Activities 16
Assessment Activities 17

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Introduction

A competency-based curriculum for Economics at the GCE Advanced Level was introduced
to the school system in 2009. The subject of Economics covers a wide area of study and it
includes Microeconomics, Macroeconomics, International economics, and Development
economics. All these fields of economics and the global influences that have taken place over
time have influenced the preparation of a revised competency-based curriculum that becomes
effective from the year 2017.

For the students who study a variety of subjects for the GCE Advanced Level examinations
currently covering the fields of Arts, Commerce and Technical subjects, the students studying
Economics which is an important, useful and popular subject, it is anticipated that they will
not only acquire knowledge but also become citizens who are enriched with useful attitudes,
talents and become rational citizens who will make a fruitful and effective contribution to the
economic development of Sri Lanka.

Economics is a social science that is closely connected to human life. While social sciences
do a study of human behaviour in society from different angles, economics provides an
opportunity to study how humanity should behave from an economic perspective. Therefore,
the study of Economics provides a good base to engage in daily activities taking decisions as
a rational citizen. The areas of Commerce, Management, and Accounting are based on the
subject of Economics. Because of this, Economics is included as the main subject in study
programmes leading up to degrees in Commerce, Management and Accounting. Therefore,
higher study opportunities in professional and academic areas become accessible to students
studying Economics as a subject.

Since Economics is a practical subject that impacts the daily life of a human person, the
preparation of the learning-teaching process must look beyond the classroom to motivate
students to acquire useful experiences from the outside world as an important aspect. It is
anticipated that the teachers, too will take the necessary steps to ensure that their theoretical
knowledge is up-to-date.

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Objectives of the syllabus

● Creating rational thinking in an economic way.

● Providing a critical understanding and scientifically analyzing the basic economic

problems in society and the alternative method of solving.

● Providing a basis for the wellbeing of society by using economic concepts and
theories and analysing trends of practical economic problems.

● Motivating to inquire about the rational behaviour of firms and individuals at the
market.

● Analysing the Behaviour of macro-economic variables and the inter-relationships

between them.

● Providing the ability to analyse contemporary economic policies.

● Motivating to inquire about the government intervention to achieve macroeconomic

objectives.

● Motivating to analyse the inter-relationships between international trade, international

finance and economic integration.

● Developing the skills required to inquire about the diversity of development

comparatively.

● Developing the skills necessary to see the detailed performance of the Sri Lankan
economy.

● Creating an approach for higher education.

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Lesson 01 - Comparatively analyses the alternative ways of solving the basic economic
problems in an economic system.

Introduction

Since this is the first chapter, in this competency, the basic concepts of Economics are laid
out to give an idea/taste of economics to the students. This module will be created in an
engaging manner so that this chapter is easily understandable to the student through online
classes as this chapter is majorly theory-based.

Lesson Learning Objectives

● Describes economic behaviour of people

● Defines Economics and explains its subject scope.
● Explains the difference between microeconomics and macroeconomics with examples
and explains the difference between human needs and wants with examples.
● Shows the way of converting noneconomic goods to economic goods.
● Explains the importance of the protection of natural resources.
● Classifies factors of production used to produce goods and services.
● Defines the concept of scarcity.
● Describes alternative uses of resources and explains the way of choice is made with
examples.
● Defines the concept of opportunity cost and explains the relationship between scarcity
and opportunity cost.
● Analyses the Basic Economic Problem such as what to produce in what quantity, how
to produce and whom to produce.

Topics of the Lesson and Subject Contents

1.1 Examines the foundation of Economics

Economic behavior of people
Economics as a social science
Definition of Economics
Importance of learning economics
Microeconomics and Macroeconomics

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1.2 Emphasizes the utilization of goods and services to fulfill human needs and wants
Human needs and wants
Economic goods and Non-economic goods
Economic resources and Non-economic resources
Renewable resources and Non-Renewable resources

1.3 Identifies the characteristics of factors of production and analyses the determinants
of factor productivity
Factors of Production (Land, Labour, Capital, Entrepreneurship)
Factor productivity

1.4 Analyses the central problem of economics, logically

Choice
Opportunity cost

1.5 Inquires the Basic Economic Problems.

What to produce and in what quantity?
How to produce?
For whom to produce?

Lesson Activities

❏ Inquire from students about the subjects they followed for G.C.E O/L and the
difference of science and civics from other subjects.
❏ Instruct students to list out the various ways of fulfilling needs.
❏ Select two students to present the dialogue given below and inquire from the
students; the facts emerging from the dialogue.
➔ Son : ​“Mother my pair of shoes is badly damaged, please buy me a
pair of shoes.
➔ Mother ​: ​“Let me see, this can be used for a few more days by getting
mended. The money I have is not enough to last till next week. There
is one more week for your father to get his salary.
➔ Son : ​My school bag also unfastens, so it is difficult to carry books in
it. At the same time my Mathematics book is also over now.
➔ Mother ​: ​The Book is essential; therefore we will buy a book and we
will try to buy a bag the next month.

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 ❏ Conduct a discussion forum highlighting the facts mentioned below;
● The subject of science studied the phenomenon of the natural
environment and the study carried out through the conclusions derived
by the tests done at laboratories.
● The subject of civics study about the things needed to live as a good
citizen the study carried out through the conclusions derived by the
study done at observing behavior of people at a society from various
aspects.
● In this way studying behavior of people of a society from various
aspects is done by social sciences.
❏ Group students appropriately and involve them in the following activity
● Pay attention to the place received by your group from the two places
given below.
1. A religious place
2. A bakery
● Name the parties present at your place.
● Explain the activities performed by them.
● Explain their main objective and the need.
● Compare the differences between parties at your place and the parties
at the other place.
● Prepare to present your findings to the whole class creatively and
collectively.

Assessment Activities

Generally, teachers discuss with students and ask questions from individuals. First activity of
this lesson is to introduce economics to the students. During the class students are divided
into a number of groups and give different assessments to them. Each and every group is
assigned to different types of headings. Such as Economic behavior of people , Economics as
a social science etc. After completing the lesson teachers will give a set of revision questions
to evaluate the performance of the students. This revision questions includes MCQ as well as
Essay type of questions.

Lesson 02 - Analyses demand, supply, elasticity, and market equilibrium.

Introduction

The second competency focuses on Market and the Market forces; namely Demand and
Supply and how prices are determined in a market using equations. This lesson is more
mathematical than theories as there are formulas, graphs, schedules and many more that the
students will have to learn. This module should be created in a way that will ensure the
students not only pay attention in class, but also practice them as well.

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 Lesson Learning Objectives

● Defines Demand and Explains the difference between Individual demand and market
demand.
● Defines Law of Demand and Presents the Law of Demand with demand schedule,
demand curve, and demand equation.
● Compares the difference between change in quantity demand and change in demand.
● Analyses the change in demand based on the demand curve.
● Defines the various types of elasticity of demand.
● Describes the relationship between elasticity of demand and slope of the demand
curve.
● Names determinants of price elasticity of demand and Analyses how determinants of
price elasticity of demand influence price elasticity of demand.
● Defines the cross-price elasticity of demand. Calculates the cross-price elasticity of
demand based on data.
● Defines income elasticity of demand and Calculates coefficient of income elasticity of
demand using data.

Topics of the Lesson and Subject Contents

2.1 Analyses the Theory of Demand and The Law of Demand using determinants of
demand.
Demand
The Law of Demand
Exceptions to the law of Demand
Giffen goods and Demonstrative goods

2.2.Compares the differences between change in the quantity demanded and the change
in demand.
Change in quantity demanded
Change in demand

2.3. Analyses the price elasticity of demand with defining elasticity of demand.
Elasticity of demand
Price elasticity of demand

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2.4 Inquires rational decision-making based on the price elasticity of demand.
Determinants of price elasticity of demand.
The relationship between price elasticity of demand and consumer outlay/producer
revenue
Importance of price elasticity of demand.

2.5. Inquires rational decision-making based on cross-price elasticity of demand.

Cross price elasticity of demand
The importance of cross price elasticity of demand

2.6 Inquires rational decision-making based on income elasticity of demand.

Income elasticity of demand.
The practical importance of income elasticity of demand

Lesson Activities

❏ Conduct a discussion by highlighting the following points.

● People demand goods to fulfill their wants.
● Factors given below create demand.
➢ Want
➢ Purchasing power
➢ Planning to buy
● Demand based on the factors above can be named as effective demand.
❏ Presents the following conversation that has been done with a bakery producer to the
students. Inquire from the students about the market behaviour of the price and
quantity demanded.
➔ Question ​– ​What do you produce(make) in your bakery?
➔ Answer ​– ​Bread and buns
➔ Question ​– ​How much bread sells per day?
➔ Answer ​– ​2000 units of bread and 1000 units of buns
➔ Question ​– ​Since What was the market price of bread?
➔ Answer ​– ​Last month the market price was Rs. 60.00 per bread. By that time
we sold 1500 units of bread per day. The price of a bun was Rs.25.00 and we
sold 800 units per day.
❏ Lead a discussion highlighting factors below.
● When the price of bread changes, the quantity demanded has changed.
● The quantity demanded of buns has changed according to the change of price.
● Thus the consumers’ demand change along with a change in market price.
● The change in quantity demanded according to the change in price can be
lined-up.

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 ❏ Get a student to read the following incident. Inquire students opinions about the
incident. Write the important factors on the black-board.
Vishvanath investigates how external incidents affect the sales of his retail
shop. He comments on the sales of his boutique following the recent salary increase
of the government servants things such as ''Demand for grapes, cosmetics and ice
cream increased due to the increase of salaries.However the demand for rice did not
increase much. But people's butter started to demand margarine''.

Assessment Activities
To replicate the exam paper format, students can receive the exam paper via Edmodo and
submit their answers within a defined time period via Edmodo. Students will be working
remotely, unsupervised and will have access to resources/books in that time period. Ensure
there is appropriate communication to students about instructions on how to complete the
paper. Since this lesson is the fundamental of economics, we are planning to give 3 types of
quizzes for the students. Also create a discussion forum for students to discuss the topics in
Edmodo platform.

Lesson 03 - Investigates government intervention to the market.

Introduction

This competency focuses on how governments intervene in a market and the effects of those
interventions. This lesson also has a lot of sums that the students must learn to do. There
seems to be a lot of confusion among the students regarding certain areas in this subject. The
reason for that seems that this lesson has a linear continuous structure. Missing one class and
joining the next might confuse students as they have missed a part of the puzzle.

Lesson Learning Objectives

● Demonstrates the ways of government intervention to the market.

● Names the ways of imposing the taxes on products.
● Defines the proportional tax and unit tax.
● Analyses welfare effect of unit tax and introduces imposing a unit tax over a buyer.
● Describes the distribution of incidence of tax between consumer and producer based
on the type of price elasticity of demand and supply.
● Defines the unit subsidy given to suppliers.
● Defines the price control and names out the different forms of price control.
● Introduces the procedures for price stabilization.

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 Topics of the Lesson and Subject Contents

3.1 Analyses the way of intervention by the government to the market.

Ways of the government intervention to the market (Imposing the taxes , Providing
the subsidies, Price controls and Price stabilization)

3.2 Analyses government intervention to the free market through a unit tax.
Imposing taxes over goods
Tax rates
Imposing a unit taxes over supplier
Introduces imposing a unit tax over a buyer

3.3 Analyses the distribution of incidence of tax after the unit tax impose on supplier.
Presents the distribution of incidence of tax with demand and supply curves.

3.4 Analyses the government intervention to the market with providing of a unit subsidy
ever supplier.
Providing a unit subsidy over a supplier.
Definition of unit subsidy
Welfare effect of unit subsidy

3.5 Examines the effects of price control and price stabilization on market operations.
Price control
Price stabilization

Lesson Activities

❏ Ask the ideas of students about the following statement.

“The government decided to impose Rs.5 tax for 1Kg. of imported potatoes to protect
domestic potato suppliers.”
❏ Conduct a discussion highlighting the following facts.
● Imposing taxes on suppliers and consumers can be considered as a common
situation where the government intervenes to market activities.
● Government Imposes taxes with various objectives.
❖ There are two forms of taxes imposed on goods and services.
➔ Proportional tax or ad-valorem tax
➔ Specific tax or unit tax
❏ Group the students in a proper way and provide instructions to do the activity.

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 ❏ Present the statement of the ​Government decides to provide fertilizer subsidy for
paddy farmers​ to the students.
❏ Inquires students’ ideas related to the statement.
❏ Conduct a discussion highlighting the following facts.
● Providing subsidies over suppliers is done by the government.
● Government provides subsidies on various objectives.
● There are two forms of subsidies
● Ad valorem subsidy
● Unit subsidy

Assessment Activities

Group activity and a group discussion regarding taxes. Present a presentation with a proper
scenario then evaluate the student knowledge about taxes and give feedback . Give an
assignment to Create a presentation under a topic and evaluate the student’s understanding
level about taxes.

Lesson 04 - Explores the rational behaviour of production firms within the market and
behaviour of the factor market.

Introduction

This lesson takes the students into the point of view of a producer. Normally a student might
always think from a consumer perspective with their purchasing experience. This lesson will
put the students in a producer’s shoe and give them an idea about Production process
behavior, production cost behavior and Market Structures as well.

Lesson Learning Objectives

● Introduces business firms and explains its various forms.

● Defines The Law of Diminishing Marginal Returns and presents assumptions of the
Law of Diminishing Marginal Returns.
● Defines cost of production and Explains the basic concept related to the production
process.
● Presents reasons for the inclusions of normal profit on production cost.
● Analyses the relationship between short run production cost curves and product
curves.
● Analyses the behaviour of long run average cost curves and its relationship with
returns to scale.

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 ● Explains the basic characteristics of a Monopoly and explains the basic features of
Monopolistic competition.
● Introduces firm’s and industry’s demand curves of perfect competitions separately.
● Explains the relationship between firm’s demand curve and industry’s demand curve
based on graphs.
● Investigates the factor demand and the factor supply.

Topics of the Lesson and Subject Contents

4.1 Analyses the behaviour of short term and long term production processes of a
business firm.
Business firms
Production Process
Short run production process
Long run production process

4.2 Makes a comparative analysis of basic concepts related to the production process.
Cost of production
The basic concept related to the production process.

4.3 Analyses the behaviour of cost in the production process.

Presents elements of short run production cost numerically and graphically
Presents the relationship between Short run production costs curves and product
curves
Behaviour of long run average cost curve.

4.4 Compares basic features of the market structures.

Market structures and their basic characteristics (Perfect competition ,Monopoly,
Monopolistic competition and Oligopoly)

4.5 Investigates the short run behaviour of a perfectly competitive firm and industry.
Firm’s and market demand curves of perfect competition.
Basic approaches of profit maximization of a firm.
The short run behaviour of a perfectly competitive firm in the perfect Competitions.
(Numerically & Graphically)

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4.6 Investigates the behaviour of the factor market.
Factor market
Factor demand
Factor supply
Factor price
Earnings of factor

Lesson Activities

❏ Inquire from students about the expenses to be incurred by an individual who

intends to sell milk coffee by using a milk coffee maker.
❏ Conduct a discussion highlighting the following facts.
● Expenditure includes cost of the milk coffee maker, costs of milk powder, cost
of coffee, cost of sugar, costs of plastic cups, expenses on electricity etc Cost
of the milk coffee maker is a fixed cost.
● Other expenditures are variable costs.
● Likewise, there are two types of costs a production firm will incur.
➔ Fixed costs
➔ Variable cost

Assessment Activities
Create a Discussion Board/Forum assignment that requires students to demonstrate critical
thinking skills by responding to a relevant forum topic. Create a rubric that gives very
specific instructions on what the student needs to address and how they are to address those
items in the forum assignment. Having assignments that are very specific makes it more
difficult for students to use portions of a previous term paper or other sources that may only
indirectly touch on the Discussion Board topic.

Lesson 05 - Demonstrates the readiness of preparing the national accounting by

considering the Macroeconomic operations.

Introduction

This is the first lesson that takes the students into a macroeconomic territory as the previous 4
lessons are microeconomic. In this lesson, students will learn not just about one individual
product's demand, supply or production process but of all the products produced in the
economy.

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 Lesson Learning Objectives

● Names the macro economic objectives and macroeconomic variables and explains the
macro economic problems.
● Explain the macroeconomic policies.
● Explains the mutual relationships among economic actors by using the circular flow
of income of a simple economy.
● Explains the multiple counting error, the final output method and presents the way of
preparing the national accounting based on that method.
● Explains production boundary and items include and exclude in production boundary.
● Explains the concepts of basic price, producer’s price and purchaser’s price with
examples.
● States the composition of Factory Industry Production Index (FIPI) of Sri Lanka.
● Explains the domestic income sources and shows the components of gross domestic
income in Sri Lanka.
● Explains the importance of national
● Accounting and presents the limitations of national accounting.

Topics of the Lesson and Subject Contents

5.1 Inquires the macro economic objectives, macroeconomic problems and

macroeconomic policies.
Macroeconomic objectives and variables
Macroeconomic problems
Macroeconomic policies

5.2 Analyses the different approaches of national accounting by circular flow of Income.
Economic actors
Circular flow of simple economy
Approaches for national accounting

5.3 Demonstrates the preparedness for national accounting on output approach.

Preparations of national accounting on output approach
Multiple counting error
Methods of avoiding the multiple counting error

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5.4 Analyses the way of estimating the gross domestic production on output approach
and the concepts related for that.
Production boundary
Economic activities on standard industrial classification of Sri Lanka.
Composition based on institutional sectors.
Different prices in estimating the value.

5.5 Inquires estimation of gross domestic product using income approach and
investigates related concepts.
Domestic income sources
Components of the Gross Domestic Income in Sri Lanka
Concepts relate to the income approach

5.6 Inquires the way of estimating the Gross Domestic Product on expenditure
approach and the concepts related.
Sources of Gross Domestic Expenditure

5.7 Analyses the importance and limitations of national accounting.

Importance of national accounting
Limitations of national accounting
Green Gross Domestic Product

Lesson Activities

❏ Various objectives expected to be achieved through aggregate economic activities of a

society are identified as macroeconomic objectives.
❏ Explains economic actors related to economic activities by naming them.
❏ Explains interrelationships among economic actors of an economy using a circular
flow of a simple economy.
❏ Different Sectors contributing to macroeconomic activities are called economic
actors. Economic actors are mainly of four types. They are,
1.Household sector
2.Business sector
3.Government sector
4.Foreign sector

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 ❏ What happens in the product approach is mainly the calculation of the Gross
Domestic Product. Gross Domestic Product means the value of all final goods and
services produced within a particular period of time (Normally within one
year),within the geographical boundaries of the country.
❏ Describes the concepts of gross domestic product at market price and gross national
income.
❏ Shows the composition of the industrial production index in Sri Lanka.
❏ Explains the concepts related to product approach

Assessment Activities

Discuss the past paper questions relating with Demonstrates the readiness of preparing the
national accounting by considering the Macroeconomic operations. Ask the question the
student should answer. Marks allocated for each every student lookout their performance.

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