ENGREG HIGH SCHOOL

24, Bankole Street, Famous, Pedro,

Shomolu.

LESSON PLAN
Week: 3 Term: 3rd TERM Session:
2023/2024
Subject: Economics Duration : 80 Topic: Barter System & The
mins Concept Of Money
Class: SS 1 Date: Reference Books
6th May- 1. Amplified and Simplified Economics
10th May for SSS by Femi Longe pages 228-
2024 236
2. New Approach to Economics By K.U.
Nnadi and A.B. Falodun Chapter 13
pages 120 – 130
3. Fundamentals of Economics by
R.A.I. Anyanwuocha page 173
Lesson Period I-II
Learning Purpose:The lesson if Key words in the topic
well learned would propel the Goldsmith
learners to appreciate the origin Strong room
of money. Receipt
Learning Objectives: Interest rate
At the end of the lesson, Previous learning
students will be able to: Students are familiar with paper
1. State the meaning of trade by money and coins
barter and its concepts
2. Explain the limitations of trade
by barter
3. Explain the meaning of money
and its origin
Learning Activities in Steps: Learning time
Teacher’s Activities For each step:
The teacher presents the lesson Step i: 5 mins
through the following activities: Step ii: 5 mins
Activity 1: The teacher reviews the Step iii : 15 mins
previous topic by asking the students Step iv : 10 mins
several questions Step vi: 5 mins
Activity 2: The teacher introduces
the new topic using key point
Activity 3:
The teacher writes the note and
gives an assignment to the students
Students’ Activities
Activity 1: The students listen with
rapt attention
Activity 2: The students contribute
with relevant examples
Activity 3: The
students ask questions
Activity 4: The students copy
the note and submit for assessment

Learning Skills: Critical thinking Assignment

and analytical skills 1. Briefly explain the origin of money
2. State the meaning of money
Evaluation
a.Define barter system
b.List five problems of barter system
+

TRADE BY BARTER
Before the invention of money, goods were exchange for goods. This system of
exchanging good and services for other goods and services is termed trade by barter.
The rigidity of the system led to the introduction of money
Therefore the barter system may be define as the direct system and practice of
exchanging goods for goods and service for services
PROBLEMS / DISADVANTAGES OF BARTER
Problem of double coincidence of wants
Problem of assessing the value of commodities
Problems of divisibility
It waste time and efforts
It discourages large scale production which is dependent on large market
 Problem of storage or saving
Problem of no fixed rate of exchange
Problem of bulkiness of some goods
No room for deferred payment
DEFINITION OF MONEY
Money maybe defined as anything that is generally acceptable as a medium of
exchange for making payments, settlement of debts or other business obligations
within a defined territory. Legal definition of money says, ‘It is what the law says it is’.
ORIGIN/HISTORICAL DEVELOPMENT OF MONEY
Money originated as a result of the problems of trade by barter. In the olden days,
different commodities have served as money in different countries of the world, such
commodities as cattle, cowries, shell, tobacco, salt and beads.
Later, precious metal like silver and gold were used. The use of paper money
originated from the use of ‘Receipts’ issued by Goldsmiths in London in exchange for
deposits of precious metal. The receipts became bank notes and the Goldsmiths
became the bankers.
In recent time, people started accepting inconvertible paper money as a medium of
exchange. For anything to serve as money, it must enjoy people’s confidence

ENGREG HIGH SCHOOL

24, Bankole Street, Famous, Pedro,
Shomolu.

LESSON PLAN
Week: 3 Term: 3rd TERM Session:
2023/2024
Subject: Economics Duration: Topic: Barter System & The
40mins Concept Of Money
Class: SS 1 Date: Reference Books
6th May- 1Amplified and Simplified
10th May Economics for SSS by Femi Longe
2024 pages 228-236
2New Approach to Economics By
K.U. Nnadi and A.B. Falodun
Chapter 13 pages 120 – 130
3Fundamentals of Economics by
R.A.I. Anyanwuocha page 173
Lesson Period III
Learning Purpose:The lesson if Key words in the topic
well learned would propel the Goldsmith
learners to appreciate the origin Strong room
of money. Receipt
Learning Objectives: Interest rate
At the end of the lesson, Previous learning
students will be able to: Students are familiar with paper
1 State the characteristics of money and coins
money
2 Explain some features of money
3 Explain all forms of money
Learning Activities in Steps: Learning time
Teacher’s Activities For each step:
The teacher presents the lesson Step i: 5 mins
through the following activities: Step ii: 5 mins
Activity 1: The teacher reviews the Step iii : 15 mins
previous topic by asking the students Step iv : 10 mins
several questions Step vi: 5 mins
Activity 2: The teacher introduces
the new topic using key point
Activity 3:
The teacher writes the note and
gives an assignment to the students
Students’ Activities
Activity 1: The students listen with
rapt attention
Activity 2: The students contribute
with relevant examples
Activity 3: The
students ask questions
Activity 4: The students copy
the note and submit for assessment

Learning Skills: Critical thinking Assignment

and analytical skills 1. List five functions of money
2. Explain types of money
Evaluation
a. List and explain five features of money
b.What is the most relevant feature of
money ?

CHARACTERISTIC / QUALITIES OF MONEY

1. Acceptability :- must be acceptable to people of a community or country

 2. Homogeneity :- must be same in all parts of the countries where acceptable
3. Recognizable :-people should be capable of identifying original from counterfeit
4. Divisibility : ability to be divided into smaller units to facilitate small and big
transactions (#1000,#500,#200,#100,#50,#20,#10,#5,#1,50k etc.)
5. Portability : it must be easy to carry around to long and short distances
6. Scarcity : it must be relatively scarce but not too scarce e.g. Gold and silver
7. Durability : it must stand the test of time against wear and tear or suffer under
mutilation
8. Stability : it must be stable to encourage lending and borrowing and make
business to be predictable
9. Storability :-it must have the ability to be stored for a longtime without losing its
value
10.Controllable supply : Supply must be controllable by the central bank to
maintain its value
FUNCTIONS OF MONEY

1. As a medium of exchange: money facilitates the exchange of goods and

services. Without money, we will probably have the trade by barter with it
problems.

2. As a unit of account: money serves as a common unit of account for easy and
accurate calculation of worth of goods

3. As a measure of value: money serves as a parameter used to measure the

relative value of goods and services.

4. As a store of value: money makes it possible to save now for later use. As a
farmer cannot store his perishable goods so also a teacher or doctor his service
but by selling their services for money, the value received can be stored for
future use.

5. As a standard for deferred payment: money makes it possible for payment to

be deferred from

now till a later date. It also facilitates future contracts to be carried out
effectively.

KINDS / TYPES OF MONEY

1. Commodity Money: these are commodities that are generally acceptable as a

medium of exchange. They have two values --- the money value and an intrinsic
value (commodity value) these commodities include cowries, gold, diamond,
silver, manilas etc while some still exist some have gone out of use.
 2. Metal Coin: this is metal money with definite amount and weight issued and
stamped by the central authority responsible for the issuance of money in a
country. E.g. Nigeria has Kobo, Ghana has Pesewa etc.
3. Bank Deposit: this is the money one keeps in his bank account for safe keeping
which can be given back to the owner on demand by cheques as a means of
payment.
4. Representative Money:- are partial money which may not be legal tender, eg
cheque, bank draft, petrol voucher, ticket, etc.
5. Paper Money: is the bank note which is the slip of paper or currency issued by the
central bank, eg N50, N100, N200
6. Legal Tender: is any means in payment by which a trader is compelled by the law of
a state to accept in settlement of debt.
7. Token Money: is a form of money with a face value which is greater than the value
of the metal content
8. Fiat Money: is any money the government has declared to be legal tender, but is
not backed by reserve
9. Fiduciary Note: is an issued bank note not backed by gold but by government
securities.
10.Plastic Money: are usually in the form of plastic hence it is sometimes called plastic
money. They serve as temporary medium of exchange but do not convey final
settlement as it is done when money is used, eg credit card, value card, debit
card, cash card ( ATM card), E-purse (Smart card), Pos (point of service or sales),
etc

ENGREG HIGH SCHOOL

24, Bankole Street, Famous, Pedro,
Shomolu.

LESSON PLAN
Week: 3 Term: 3rd TERM Session:
2023/2024
Subject: Economics Duration : 80 Topic: Inflation and Deflation
mins
Class: SS 2 Date: Reference Books
6th May- 1Amplified and Simplified Economics for
10th May SSS by Femi Longe page 196-204
2024 2Comprehensive Economics for SSS by J.U.
Anyaele, Chapter 26,pages 183-186
3Fundamentals of Economics by R.A.I.
Anyanwuocha page 173
 Lesson Period I-II
Learning Purpose:The lesson if Key words in the topic
well learned would help the Price
learners to be critical and Commodity
rational in buying a fairly Increase and Decrease
alternative commodity. Fiscal and monetary policy
Learning Objectives: Previous learning
At the end of the lesson, Students are familiar with paper
students will be able to: money and coins
1 State the meaning .types and
causes of inflation
2 Explain the effects of inflation
3 Explain how to control inflation
Learning Activities in Steps: Learning time
Teacher’s Activities For each step:
The teacher presents the lesson Step i: 5 mins
through the following activities: Step ii: 5 mins
Activity 1: The teacher reviews the Step iii : 15 mins
previous topic by asking the students Step iv : 10 mins
several questions Step vi: 5 mins
Activity 2: The teacher introduces
the new topic using key point
Activity 3:
The teacher writes the note and
gives an assignment to the students
Students’ Activities
Activity 1: The students listen with
rapt attention
Activity 2: The students contribute
with relevant examples
Activity 3: The
students ask questions
Activity 4: The students copy
the note and submit for assessment

Learning Skills: Critical thinking Assignment

and analytical skills EVALUATION
1. State four positive effects of
inflation.
2. State five causes of inflation

DEFINITION
Inflation- is a persistent rise in the general level of price of goods and services.
Inflation occurs when there is an increase in money supply without corresponding
increase in volume of
production.

TYPES OF INFLATION
1. Demand – Pull Inflation
2. Cost – Push Inflation
3. Hyper-Inflation
4. Creeping Inflation

Demand – Pull Inflation – This occurs when there is excess demand for goods and
services over the supply. The factors responsible for this type of inflation may be due
to population increase, increase in workers’ salaries and wages, etc.

Cost – push Inflation – Producers pay for factors of production, any slight increase in
price of factor input will reflect in the price per unit. For example: if there is an
increase in price of flour, sugar, butter, automatically the price of bread would be high.

Hyper- Inflation – This occurs when the prices of goods and services are rising fast to
the extent that money is losing its value or its ability to buy goods. War, budget
deficits,
etc are the major causes of hyper inflation. Hyper inflation is also known as – galloping
inflation or run away inflation.

Creeping Inflation – This type of inflation occurs when there is slow but steady rise in
the general prices of goods and services. It is also known as persistent inflation

CAUSES OF INFLATION
1. Inflation occurs when there is excess demand for goods and services e.g.
demand pull inflation.
2. Low productivity e.g. agriculture;
3. Increase in salaries and wages.
4. High cost of production.
5. Budget deficit i.e. when government expenditure is more than its income.
6. Inflation can also be caused if there is increase in population that will force
demand to rise.
7. Excessive bank lending.
8. High cost of importing raw material can lead to high cost of goods.
9. Hoarding – which is an act of creating artificial scarcity.
10. Inflation can be caused due to industrial action by workers e.g. strike, tools
down etc.
11. Poor storage facilities.
12. Money laundering – which is mass transfer and injection of money into
circulation.

EFFECTS OF INFLATION
Inflation as a phenomenon is a necessary evil. In other word, it has positive and
negative
effects in the overall economy.

POSITIVE EFFECTS OF INFLATION

1. During inflation, the debtor gains at the expense of the creditor.
2. Inflation period serves as a period where businessmen make profit.
3. Inflation stimulates investment.
4. Employment rate is high during inflation.
5. Due to the second, third and fourth points stated above, inflation helps the
economy to grow.

Negative effects of inflation

1. The lenders (creditors) incur loss because the money loses its value as inflation
persists.
2. Distortion in the economy due to agitation for increase in wages and salaries.
3. Fixed income earners e.g. salary earners suffer a lot during inflation.
4. Money loses its value during inflation.
5. It leads to balance of payment problems.
6. Inflation discourages savings since money loses its value day in day out.
7. Fall in living standard of the people.
HOW TO CONTROL INFLATION
1. In an attempt to stem inflation, the government should encourage
industrialization to make goods and services available.
2. Where inflation is triggered by increase in money supply, effective interest rate
could be adopted i.e. increasing the interest rate to discourage excess borrowing.
3. Effective use of fiscal policy e.g. Taxation as a way of reducing the disposable
income of workers can help to check inflation.
4. Removal of bottlenecks in the distribution system. This will enhance free flow of
goods.
5. Legislation could be put in place to check the activities of hoarders.
6. Contractionary monetary policy can also help to check inflation where inflation
is caused by increase in money supply.
7. Subsidies – for farmers, business, will help in solving the problem of increase in
the prices of inputs e.g. hoe, cutlass.
8. Wage freezing i.e. government should not increase salaries.
 ENGREG HIGH SCHOOL
24, Bankole Street, Famous, Pedro,
Shomolu.

LESSON PLAN
Week: 3 Term: 3rd TERM Session:
2023/2024
Subject: Economics Duration : 40 Topic: Inflation and Deflation
mins
Class: SS 2 Date: Reference Books
6th May- 1 Amplified and Simplified Economics for
10th May SSS by Femi Longe page 196-204
2024 2Comprehensive Economics for SSS by J.U.
Anyaele, Chapter 26,pages 183-186
3Fundamentals of Economics by R.A.I.
Anyanwuocha page 173
Lesson Period III
Learning Purpose:The lesson if Key words in the topic
well learned would help the Price
learners to be critical and Commodity
rational in buying a fairly Increase and Decrease
alternative commodity. Fiscal and monetary policy
Learning Objectives: Previous learning
At the end of the lesson, Students are familiar with paper
students will be able to: money and coins
1 State the meaning and causes
of deflation
2 Explain the effects and control of
deflation
3 Explain some inflation and
deflation terminologies
Learning Activities in Steps: Learning time
Teacher’s Activities For each step:
The teacher presents the lesson Step i: 5 mins
through the following activities: Step ii: 5 mins
Activity 1: The teacher reviews the Step iii : 15 mins
previous topic by asking the students Step iv : 10 mins
several questions Step vi: 5 mins
Activity 2: The teacher introduces
the new topic using key point
Activity 3:
The teacher writes the note and
gives an assignment to the students
Students’ Activities
Activity 1: The students listen with
rapt attention
Activity 2: The students contribute
with relevant examples
Activity 3: The
students ask questions
Activity 4: The students copy
the note and submit for assessment

Learning Skills: Critical thinking Assignment

and analytical skills
Explain ways by which government can
Evaluation control deflation
EVALUATION

1. Write a short note on; (a) inflation gap

(b) stagflation (c) deflation

2. State four causes of deflation.

DEFLATION- is defined as a persistent fall in the general level of price. This is a

situation where the volume of money in circulation is not sufficient to meet up with
the

prevalent economic situation. This is a direct opposite of inflation. This is a fall in

general level of price as a result of decrease in the volume of money in circulation.

CAUSES OF DEFLATION

1. Deflation is caused by failure of government to spend i.e. Budget surplus.

2. When banks increase their interest rate, it discourages borrowing as such

money supply drops. This amounts to deflation.

3. Where the productivity exceeds the demand coupled with decrease in money
supply then deflation sets in.
4. Where workers are excessively taxed leaving them with little disposable income,
their marginal propensity to consume drops thereby leading to deflation.

TERMINOLOGIES ASSOCIATED WITH INFLATION

1. INFLATION GAP – This is an economic situation in which the total demand in the
economy exceeds the total supply of goods and services available to satisfy
demand. To arrive at this, subtract the total amount of money available for
spending from the total money value of the actual good and services available
to meet the demand.

2. INFLATION SPIRAL – An increase in price will make workers to demand for an

increase income (wages and salaries). This will cause a rise in general level of
price. This is known as inflation spiral.

3. DISINFLATION – The direct control of consumer’s expenditure as a way of

checking inflation is known as disinflation. This is done by reducing the supply
of money and increasing interest rates etc.

4. REFLATION – This refers to economic state of affairs in which prices,

employment, output etc. is picking up again as a result of conscious government
policy to that effect.

5. STAGFLATION – When high rate of inflation exists at the same time as industrial
production is slowing down, then we refer to this as stagflation.

6. SLUMPFLATION: Slumpflation occurs when economic condition in which much

reduced economic activity co-exists with inflation.