Pangasinan State University

Bayambang Campus
COLLEGE OF TEACHER EDUCATION
Bayambang, Pangasinan

Semi-detailed Lesson Plan in Basic Economics

I. Objectives

At the end of 60 minutes lesson, students should be able to achieve at least 75%
proficiency of the following;
a. Relate the concept of economic growth to economic development and in the ways
of living;
b. Make a Venn diagram that shows the relationship of economic development and
economic growth; and
c. Critique the present development of the Philippines in our economy.

II. Subject Matter

Economic Development vs. Economic Growth

Reference/s:
http://www.academia.edu/7016400/DIFFERENCE_BETWEEN_ECONOMIC_DEVELO
PMENT_AND_ECONOMIC_GROWTH
(Date Accessed: June 23, 2017)
http://www.economicsdiscussion.net/articles/relationship-between-economic-growth-
and-economic-development/2042
(Date Accessed: June 23, 2017)
http://www.economicshelp.org/blog/1187/development/economic-growth-and-
development/
(Date Accessed: June 23, 2017)
http://keydifferences.com/difference-between-economic-growth-and-economic-
development.html
(Date Accessed: June 23, 2017)
http://www.diffen.com/difference/Economic_Development_vs_Economic_Growth
(Date Accessed: June 23, 2017)

Materials/s: laptop, venn diagram, white board marker, tables and graphs
Value Integration: Able to form reasons in a logical way regarding the
current issues in the Philippines

III. Lesson Proper

A. Preliminary Activities
*Prayer
*Checking of Attendance
*Recalling about previous lesson
 B. Motivation
The teacher will group the class into four. Each group will be given a card
to fill in the word ECONOMICS. Any words that correspond to the given letter will be
given a designated point. The group that will earn the highest point will be given a
reward.
C. Developmental Question
1. What is Economic Growth and Economic Development?
2. What is the difference and similarities of Economic Growth and
Economic Development?
3. What are the factors that affects the Economic Development of a
country?
4. How was the ranking of the Philippines in terms of economic
development, and how was it affect the country?
D. Procedure

Economic Growth refers to the rise in the value of everything produced in

the economy. It implies the yearly increase in the countrys GDP or GNP, in percentage
terms. It alludes to considerable rise in per-capita national product, over a period, i.e. the
growth rate of increase in total output, must be greater than the population growth rate.

Economic Growth is often contrasted with Economic Development, which

is defined as the increase in the economic wealth of a country or a area, for the welfare of
its residents. Here, you should know that economic growth is an essential but not the only
condition for economic development.

The economic trend in a country, is the major component for its business
environment. An economy whose growth rate is high provides a promising business
prospect and thus builds business confidence. In this article, you will find all the
substantial differences between economic growth and economic development.

Basis for comparison Economic Growth Economic Development

Meaning Economic Growth is the Economic Development
positive change in the real involves rise in the level of
output of the country in a production in an economy
particular span of time. along with the advancement
of technology, improvement
in living standards and so
on.
Concept Narrow Broad
Scope ncrease in the indicators Improvement in life
like GDP, per capita income expectancy rate, infant
etc mortality rate, literacy rate
and poverty rates.
Term Short-term process Long-term Process
Application to Developed Economies Developing Economies
How it can be measured Upward movement in Upward movement in real
national income national income
What kind of changes are Quantitative changes Qualitative and quantitative
expected? changes
Type of process Automatic Manual
When it arises? In certain period of time Continues process

Economic Growth is defined as the rise in the money value of goods and
services produced by all the sectors of the economy per head during a particular period. It
is a quantitative measure that shows the increase in the number of commercial
transactions in an economy.

Economic growth can be expressed in terms of gross domestic product

(GDP) and gross national product (GNP), that helps in measuring the size of the
economy. It lets us compare in absolute and percentage change, i.e. how much an
economy has progressed since last year. It is an outcome of the increase in the quality and
quantity of resources and advancement of technology.

Economic Development is defined as the process of increase volume of

production along with the improvement in technology, a rise in the level of living,
institutional changes, etc. In short, it is the progress in the socio-economic structure of the
economy.

Human Development Index (HDI) is the appropriate tool to gauge the

development in the economy. Based on the development, the HDI statistics rank
countries. It considers the overall development in an economy regarding the standard of
living, GDP, living conditions, technological advancement, improvement in self-esteem
needs, the creation of opportunities, per capita income, infrastructural and industrial
development and much more.

Key Differences Between Economic Growth and Economic Development

The fundamental differences between economic growth and development are explained
in the points given below:

Economic growth is the positive change in the real output of the country in a
particular span of time economy. Economic Development involves a rise in the
level of production in an economy along with the advancement of technology,
improvement in living standards and so on.
Economic growth is one of the features of economic development.
Economic growth is an automatic process. Unlike economic development, which
is the outcome of planned and result-oriented activities.
Economic growth enables an increase in the indicators like GDP, per capita
income, etc. On the other hand, economic development enables improvement in
the life expectancy rate, infant mortality rate, literacy rate and poverty rates.
Economic growth can be measured when there is a positive change in the national
income, whereas economic development can be seen when there is an increase in
real national income.
 Economic growth is a short-term process which considers yearly growth of the
economy. But if we talk about economic development it is a long-term process.
Economic Growth applies to developed economies to gauge the quality of life, but
as it is an essential condition for the development, it applies to developing
countries also. In contrast to, economic development applies to developing
countries to measure progress.
Economic Growth results in quantitative changes, but economic development
brings both quantitative and qualitative changes.
Economic growth can be measured in a particular period. As opposed to economic
development is a continuous process so that it can be seen in the long run.

Factors affecting economic growth in developing countries

Levels of infrastructure e.g. transport and communication

Levels of corruption, e.g what percentage of tax rates are collected and spent on
public services.
Educational standards and labor productivity. Basic levels of literacy and
education can determine productivity of workforce.
Levels of inward investment. For example, China has invested in many African
countries to help export raw materials, that its economy needs.
Labor mobility. Is labor able to move from relatively unproductive agriculture to
more productive manufacturing.
Flow of foreign aid and investment. Targeted aid, can help improve infrastructure
and living standards.
Level of savings and investment. Higher savings can fund more investment,
helping economic growth.

Economic growth without development

It is possible to have economic growth without development. i.e. an increase in

GDP, but most people dont see any actual improvements in living standards.
Economic growth may only benefit a small % of the population. For example, if a
country produces more oil, it will see an increase in GDP. However, it is possible,
that this oil is only owned by one firm, and therefore, the average worker doesnt
really benefit.
Corruption. A country may see higher GDP, but the benefits of growth may be
siphoned into the bank accounts of politicians
Environmental problems. Producing toxic chemicals will lead to an increase in
real GDP. However, without proper regulation it can also lead to environmental
and health problems. This is an example of where growth leads to a decline in
living standards for many.
Congestion. Economic growth can cause an increase in congestion. This means
people will spend longer in traffic jams. GDP may increase but they have lower
living standards because they spend more time in traffic jams.
Production not consumed. If a state-owned industry increases output, this is
reflected in an increase in GDP. However, if the output is not used by anyone then
 it causes no actual increase in living standards.
Military spending. A country may increase GDP through spending more on
military goods. However, if this is at the expense of health care and education it
can lead to lower living standards.

IV. Evaluation
Make a Venn diagram that shows the similarities and differences of
Economic Development and Economic Growth.

V. Assignment
In a short coupon bond, make a slogan that can help boost our tourism
industry and attract investors in the country.
Rubrics
Quality- 10%
Style- 20%
Relevance- 20%
Content- 50%
_______
Total: 100%