lesson plan about gnp and gdp

I. Objectives

At the end of the lesson, the students should be able to:

1. Identify the different methods how GDP is measured.

2. Recognize how the economy is growing by the two measures.

3. Differentiate Gross National Product from Gross Domestic Product

II. Subject Matter

Topic: Measuring National Output: GDP and GNP

Reference: Economics: Basic Principles Application and Issues. Vibar Publishing pp.

166-175

Principles of Economics pp.159-169

Materials: Visual aids, graphic organizers, cartolina, whiteboard marker

III. Procedure

Teacher’s Activity

Student’s Activity

A. Classroom Management

1. Opening Prayer

2. Checking of Attendance

B. Motivation

The teacher will show a picture of two

man bringing their cases that symbolizes

the GDP and GNP. With these, the

students will identify the different goods

and services to where it belong.

The students will participate to

the activity as part of the

motivation

C. Lesson Proper

So based on the activity, I want you to

differentiate GDP and GNP. I will group

you in pair to answer it.

After that you will share at least one thing that

they alike and differ with each other.

What did you notice between the two?

Your answers are correct. GDP pertains to

market value of final goods and services

produced in a given year. It also excludes

production abroad by Philippine businesses. On

the other hand, GNP is the total market value of

all the final goods and services produced by a

nation’s residents (e.g. Filipinos), no matter

where they are located.

In addition to what you have shared, GDP and

GNP is a big picture of financial matters and

nation’s economy.

So how can we measure the national output?

The students will do the task

given by the teacher

Each pair will share their work in

front of the class.

Although they have the same

approaches in measuring output

but still they are differ in

determining the final goods.

We can measure the national

output through the three different

approaches which are the

Expenditure Approach, Income

Approach and Industrial Origin

Approach.

That’s right! First, we have Expenditure approach.

This approach measures GDP and GNP by adding

all the spending for final goods during a period of

one year. This consists of consumption

expenditures that comprise the total spending

made by the households (C), investment and

government expenditures includes the value of

goods and services government at all level

purchases measured by their costs (I), (G), and net

exports (X-M). But in GNP, we also add the Net

Factor Income from Abroad and Statistical

Discrepancy.

The teacher will show an illustration regarding the

three approaches.

What is the equation for expenditure approach?

You will get the symbol for of each expenses or

goods to show the equation.

Correct! It is also the total amount that people

spend on goods and services. As you can see in

the table, personal consumption has the largest

component of among the rest.

The teacher will show an example computation

using expenditure approach.

GDP=4,226,120+587,436+864,531+(2,797,986-

2,873,562)

GNP=4,226,120+587,436+864,531+(2,797,986-

2,873,562)+537,687+430,086

Now, answer this. You will solve the GNP only.

GNP= 3, 773, 038+ 521, 664+ 793, 989+ (2, 589, 739- 2, 816, 243)+ 447, 145+ 575, 719

Then, what is the next approach that is used in

measuring national output?

That’s right! It is more complex approach to

measuring GDP and GNP. In GNP this approach

obtained the personal income, government

GDP= C+I+G+ (X-M)

GNP= C+I+G+ (X-M) + Net

Factor Income from Abroad +

Statistical Discrepancy

The students will answer the GNP

using expenditure approach.

The second approach is the

Income Approach.

income, corporate income, indirect taxes, and

depreciation.

Correct! Then how it was computed?


using income approach.

GNP= 2,405, 320+ 1, 387, 780+ 1, 504, 032+ 870,

654- 754, 290+546, 079

Again, answer this. Solve the GNP only.

GNP= 3,506, 340+ 1, 290, 384+ 1, 456, 987+ 999,

847- 835, 618+632, 079

When the three forms of incomes are added, one

arrives at a measure of the national income or

GNP. In addition, compensation or personal

income is the largest of national income accounts.

It is also the total income earned by the workers

and businesses.

Then the last approach is the industrial origin

approach. How do you understand this approach?

That’s right! The economy’s production sectors

are agriculture, industry and services. This

approach measured the total amount of goods and

services produced by the different sectors.

As you can see in the table, the service sector has

the largest component in GNP and GDP.

Why do you think it has the largest component?

That’s right! So what is the equation to compute

GNP through this approach?

GNP= PI+GI+CI+IT+S+D


using income approach

It is another way to arrive at GNP

by adding up all the value of

production of the different sectors

of the economy.

It is because there are lot of

Filipinos who gives their services

rather than goods.

GDP by Industrial Origin=

Agriculture, Fisheries and

Forestry +Industry + Services

GNP= GDP + NFIA


using industrial origin approach.

GDP= 855, 452+ 1, 907, 980+ 3, 269, 192

GNP= 6, 032, 624+ 537, 687

Then again, answer this. Solve first the GDP then

GNP.

GDP= 780, 072+ 1, 735, 148+ 2, 922, 685 GNP= 5, 437, 905+ 447, 145

No doubt, you really understand how to use the

three approaches in measuring the national output.


using income approach

D. Generalization

Classify the phrases regarding the Gross National Product and Gross Domestic Product

whether it is their differences or their similarities.

GNP GDP

1. Market value of final goods and services produced in a given year.

2. Income earned by Overseas Filipino Workers

3. Value of commodities produced within the country’s borders.

4. Goods that was produced by the foreigners within the country.

5. Commodities produced by a country’s citizens.

Differences Differences

E. Valuing

The teacher will present a video presentation that shows the relations of GNP and GDP to economy.

IV. Evaluation

SET 1

Based from the video you that have watched answer this question. (10 points)

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How can you say that our

economy is near to

prosperity? Or wealthy?

SET 2

Choose one approach that you believe is the most applicable approach to measure national output.

Explain your answer. (10 points)

lesson plan about gnp and gdp

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